Royal Caribbean Cruises Ltd (RCL)
Pretax margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 2,896,000 | 2,617,000 | 2,512,680 | 2,116,960 | 1,705,050 | 924,844 | -52,868 | -1,036,730 | -2,155,960 | -3,012,724 | -4,470,242 | -5,295,920 | -5,260,500 | -5,270,460 | -5,185,220 | -5,469,810 | -5,775,130 | -4,127,726 | -1,898,051 | 213,754 |
| Revenue (ttm) | US$ in thousands | 16,485,000 | 16,055,000 | 15,329,450 | 14,742,430 | 13,899,580 | 13,172,570 | 12,005,200 | 10,666,460 | 8,840,540 | 7,218,797 | 4,682,675 | 2,549,349 | 1,532,133 | 584,025 | 93,379 | 218,070 | 2,208,806 | 4,692,077 | 7,912,615 | 10,543,640 |
| Pretax margin | 17.57% | 16.30% | 16.39% | 14.36% | 12.27% | 7.02% | -0.44% | -9.72% | -24.39% | -41.73% | -95.46% | -207.74% | -343.34% | -902.44% | -5,552.88% | -2,508.28% | -261.46% | -87.97% | -23.99% | 2.03% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $2,896,000K ÷ $16,485,000K
= 17.57%
The pre-tax margin of Royal Caribbean Cruises Ltd has shown significant fluctuations over the periods reported. The margin was negative for most of the quarters leading up to the first quarter of 2023, indicating that the company's expenses exceeded its earnings before tax during that time. However, there was a notable improvement in the company's performance starting from the second quarter of 2023, with the pre-tax margin returning to positive territory.
From the first quarter of 2023 to the fourth quarter of 2024, Royal Caribbean Cruises Ltd managed to increase its pre-tax margin consistently, reflecting better cost management and/or revenue growth. The pre-tax margin improved from -9.72% in the first quarter of 2023 to 17.57% in the fourth quarter of 2024, showcasing a positive trend and increasing profitability during this period.
Overall, the analysis suggests that Royal Caribbean Cruises Ltd went through a challenging period between 2020 and early 2023 but managed to turn things around and strengthen its financial performance thereafter, as indicated by the positive pre-tax margins achieved in the latter quarters of 2023 and throughout 2024.
Peer comparison
Dec 31, 2024