Royal Caribbean Cruises Ltd (RCL)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	497,000	1,935,000	2,701,770	3,684,470	243,738
Short-term investments	US$ in thousands	25,000	5	54,184	70,082	21,751
Receivables	US$ in thousands	405,000	531,000	408,067	284,149	305,821
Total current liabilities	US$ in thousands	9,401,000	8,573,000	7,285,680	4,537,120	7,952,900
Quick ratio		0.10	0.29	0.43	0.89	0.07

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($497,000K + $25,000K + $405,000K) ÷ $9,401,000K
= 0.10

The quick ratio of Royal Caribbean Group has shown fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets.

In 2023, the quick ratio stands at 0.16, indicating that the company may have difficulties meeting its short-term liabilities with its quick assets alone. This significant decrease from the prior year's ratio of 0.35 raises concerns about the company's liquidity position.

The sharp drop in the quick ratio from 2022 to 2023 may suggest potential issues with managing current liabilities or a decrease in liquid assets. This could signal a need for the company to improve its cash management practices or reduce its short-term obligations.

Comparing to the ratios in 2021 and 2022, where the quick ratio was 0.47 and 0.35 respectively, the current ratio of 0.16 in 2023 appears notably weaker. Additionally, the quick ratio was considerably stronger in 2020 at 0.92, indicating a significant decline in liquidity position over the past three years.

The quick ratio in 2019 was 0.13, indicating a similar low liquidity position compared to 2023, but it has since improved gradually until the significant decline in 2023.

In conclusion, the decreasing trend in the quick ratio of Royal Caribbean Group over the past three years, with a sharp drop in 2023, suggests potential liquidity challenges that the company may need to address to ensure its financial health and ability to meet short-term obligations.