Royal Caribbean Cruises Ltd (RCL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 47.51% | 44.06% | 25.18% | -73.45% | -25.19% |
| Operating profit margin | 24.91% | 20.71% | -9.59% | -252.61% | -208.33% |
| Pretax margin | 17.57% | 12.26% | -24.39% | -343.35% | -261.46% |
| Net profit margin | 17.45% | 12.21% | -23.75% | -428.98% | -294.49% |
Based on the data provided, we can see a significant improvement in Royal Caribbean Cruises Ltd's profitability ratios over the years.
1. Gross Profit Margin: The gross profit margin has shown a volatile trend, with a substantial increase from -25.19% in 2020 to 47.51% in 2024. This improvement indicates that the company has been able to effectively control its cost of goods sold and increase its profitability on each dollar of sales.
2. Operating Profit Margin: The operating profit margin has also shown a positive trajectory, moving from deep negative figures in 2020 and 2021 to 24.91% in 2024. This improvement suggests that Royal Caribbean Cruises Ltd has been successful in managing its operating expenses and generating profits from its core business operations.
3. Pretax Margin: The pretax margin has followed a similar pattern of improvement, starting from -261.46% in 2020 and reaching 17.57% in 2024. This indicates that the company has been able to enhance its overall efficiency and generate higher profits before accounting for taxes.
4. Net Profit Margin: The net profit margin has shown a remarkable recovery, transitioning from negative values in 2020 and 2021 to 17.45% in 2024. This positive trend reflects Royal Caribbean Cruises Ltd's ability to effectively manage its tax obligations and generate profits for its shareholders.
Overall, the upward trend in all profitability ratios demonstrates the company's efforts in enhancing operational efficiency, controlling costs, and ultimately improving its bottom line performance over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.08% | 8.19% | -2.51% | -12.00% | -14.17% |
| Return on assets (ROA) | 7.76% | 4.83% | -6.22% | -20.37% | -20.04% |
| Return on total capital | 54.44% | 63.84% | -28.01% | -78.70% | -56.52% |
| Return on equity (ROE) | 38.04% | 35.92% | -73.20% | -129.24% | -74.25% |
Royal Caribbean Cruises Ltd's profitability ratios have shown a mixed performance over the years.
- The Operating return on assets (Operating ROA) improved significantly from -14.17% in December 2020 to 11.08% in December 2024, indicating better operational efficiency in generating profits from its assets.
- Return on assets (ROA) also showed improvement, moving from -20.04% in December 2020 to 7.76% in December 2024, reflecting the company's ability to generate earnings from its total assets.
- Return on total capital experienced a significant turnaround, transitioning from negative figures in 2020 and 2021 to positive returns of 63.84% in December 2023 and 54.44% in December 2024, indicating a more efficient utilization of capital to generate profits.
- Return on equity (ROE) also saw a considerable improvement from negative returns in 2020 and 2021 to positive returns of 35.92% in December 2023 and 38.04% in December 2024, reflecting an enhanced profit generation for the shareholders' equity invested.
Overall, there has been a positive trend in profitability ratios for Royal Caribbean Cruises Ltd, suggesting better financial performance and value creation for shareholders in recent years.