Royal Caribbean Cruises Ltd (RCL)

Operating profit margin

		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
Operating income (ttm)	US$ in thousands	2,877,996	2,323,745	1,357,070	366,845	-763,976	-1,811,167	-3,115,412	-3,920,298	-3,870,321	-3,855,131	-3,845,425	-4,104,385	-4,601,564	-3,285,589	-1,398,683	457,460	2,082,701	2,147,303	2,056,244	1,939,486
Revenue (ttm)	US$ in thousands	12,414,050	11,585,330	10,405,410	9,125,500	7,401,090	5,987,446	3,376,651	1,548,055	808,989	152,491	93,378	136,469	1,919,945	4,403,217	7,502,405	10,106,000	10,634,430	10,449,320	10,180,010	9,820,010
Operating profit margin		23.18%	20.06%	13.04%	4.02%	-10.32%	-30.25%	-92.26%	-253.24%	-478.41%	-2,528.10%	-4,118.13%	-3,007.56%	-239.67%	-74.62%	-18.64%	4.53%	19.58%	20.55%	20.20%	19.75%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $2,877,996K ÷ $12,414,050K
= 23.18%

The operating profit margin of Royal Caribbean Group has shown a fluctuating trend over the past eight quarters. In Q4 2023, the operating profit margin improved to 20.71%, indicating a strong profitability compared to the previous quarters. This upward trend follows a pattern of gradual improvement seen in Q3 2023 (17.58%) and Q2 2023 (11.94%).

However, it is important to note that the company faced challenges in maintaining profitability in the previous periods. In Q1 2023, the operating profit margin was only 3.93%, suggesting a relatively low level of profitability. The negative operating profit margins in Q4 2022, Q3 2022, Q2 2022, and Q1 2022 (-8.64%, -22.20%, -64.51%, -149.41% respectively) indicate periods of significant financial challenges for the company.

Overall, while the recent quarters show a positive trend in operating profit margin, the company has faced difficulties in generating profits consistently in the past. Management will need to continue monitoring and addressing factors affecting profitability to ensure sustained financial health and performance.