Royal Caribbean Cruises Ltd (RCL)
Liquidity ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.19 | 0.19 | 0.20 | 0.26 | 0.37 | 0.29 | 0.30 | 0.40 | 0.49 | 0.79 | 1.07 | 1.70 | 0.95 | 0.76 | 0.99 | 0.51 | 0.15 | 0.17 | 0.17 | 0.16 |
| Quick ratio | 0.10 | 0.10 | 0.11 | 0.17 | 0.29 | 0.21 | 0.23 | 0.31 | 0.43 | 0.71 | 0.98 | 1.61 | 0.87 | 0.69 | 0.92 | 0.46 | 0.07 | 0.09 | 0.08 | 0.08 |
| Cash ratio | 0.06 | 0.06 | 0.08 | 0.13 | 0.23 | 0.16 | 0.18 | 0.25 | 0.37 | 0.63 | 0.91 | 1.54 | 0.81 | 0.65 | 0.88 | 0.43 | 0.03 | 0.04 | 0.03 | 0.03 |
The liquidity ratios of Royal Caribbean Group show a consistent downward trend over the eight quarters analyzed. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has decreased from 0.40 in Q1 2022 to 0.19 in Q4 2023. This indicates a declining ability to meet short-term obligations with current assets.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also decreased steadily from 0.37 in Q1 2022 to 0.16 in Q4 2023. This suggests a weakening ability to cover immediate liabilities without relying on inventory.
Furthermore, the cash ratio, which specifically assesses the company's ability to cover short-term obligations with cash and cash equivalents, has shown a similar declining trend from 0.31 in Q1 2022 to 0.12 in Q4 2023. This downward movement indicates a reduced capacity to meet short-term obligations solely with cash on hand.
Overall, the decreasing trend in liquidity ratios for Royal Caribbean Group may raise concerns about its short-term financial health and ability to manage liquidity effectively. Further analysis and monitoring of the company's cash flow management and working capital practices may be necessary to address these liquidity challenges.
See also:
Royal Caribbean Cruises Ltd Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -5.23 | -9.27 | -8.08 | -7.81 | 4.59 | 16.94 | 36.17 | 91.53 | 157.12 | 921.79 | 1,322.82 | 586.57 | 40.95 | 1.18 | -9.67 | -36.70 | -6.01 | -3.55 | -3.74 | -1.61 |
The cash conversion cycle of Royal Caribbean Group has shown variability over the past eight quarters. In Q4 2023, the company's cash conversion cycle stood at -30.91 days, indicating that it was able to convert its invested cash back into cash quickly during that quarter. This was an improvement compared to the previous quarter where the cycle was -26.90 days.
However, it is worth noting that in Q1 2022, the cash conversion cycle was at its lowest point in the selected period at -61.65 days, reflecting a significant delay in converting investments in inventory and other resources back into cash.
Overall, the trend appears to be fluctuating, with some quarters showing efficient cash conversion cycles (e.g., Q2 2022) and others indicating a longer period required to convert cash back into investments (e.g., Q1 2022). Monitoring this metric over time can provide insights into the company's efficiency in managing its working capital and operational processes.