Royal Caribbean Cruises Ltd (RCL)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	4,106,000	2,878,000	-847,933	-3,870,330	-4,601,560
Revenue	US$ in thousands	16,484,000	13,900,000	8,840,540	1,532,130	2,208,800
Operating profit margin		24.91%	20.71%	-9.59%	-252.61%	-208.33%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $4,106,000K ÷ $16,484,000K
= 24.91%

Royal Caribbean Cruises Ltd's operating profit margin fluctuated significantly over the years, ranging from negative values to positive figures. The margin was deeply negative in December 2020 and December 2021, which indicates that the company's operating expenses exceeded its revenues during those periods. However, there was a notable improvement in December 2022, where the operating profit margin reached -9.59%, suggesting the company managed to reduce its expenses relative to revenue.

Subsequently, there was a significant positive turnaround in the company's performance, with the operating profit margin rising to 20.71% in December 2023 and further increasing to 24.91% by December 2024. These positive margins indicate that Royal Caribbean Cruises Ltd was able to achieve a healthy balance between its operating expenses and revenues, leading to increased profitability. Overall, the company's operating profit margin demonstrated a positive trend, reflecting improving operational efficiency and profitability over the analyzed period.