Royal Caribbean Cruises Ltd (RCL)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	388,000	497,000	1,935,000	2,701,770	3,684,470
Short-term investments	US$ in thousands	—	25,000	—	54,184	70,082
Receivables	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	9,817,000	9,401,000	8,573,460	7,285,680	4,537,120
Quick ratio		0.04	0.06	0.23	0.38	0.83

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($388,000K + $—K + $—K) ÷ $9,817,000K
= 0.04

The quick ratio of Royal Caribbean Cruises Ltd has shown a declining trend over the past five years, indicating a potential decrease in the company's ability to meet its short-term financial obligations with its most liquid assets. The ratio stood at 0.83 as of December 31, 2020, but has since decreased to 0.04 as of December 31, 2024.

A quick ratio below 1 typically suggests that the company may have difficulty paying off its current liabilities without selling inventory or obtaining additional financing. In the case of Royal Caribbean Cruises Ltd, the decreasing quick ratio may raise concerns about its liquidity and ability to manage short-term financial obligations effectively.

Further investigation into the company's liquidity management strategies and financial health is warranted to assess the implications of the declining quick ratio on its overall financial performance and stability.