Royal Caribbean Cruises Ltd (RCL)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 1,702,998 | 909,765 | -74,897 | -1,066,605 | -2,177,539 | -3,038,652 | -4,513,980 | -5,338,410 | -5,303,480 | -5,306,070 | -5,207,250 | -5,497,310 | -5,806,260 | -4,158,903 | -1,926,113 | 189,738 | 1,886,632 | 1,926,365 | 1,850,613 | 1,843,878 |
| 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 |
| Pretax margin | 13.72% | 7.85% | -0.72% | -11.69% | -29.42% | -50.75% | -133.68% | -344.85% | -655.57% | -3,479.60% | -5,576.53% | -4,028.25% | -302.42% | -94.45% | -25.67% | 1.88% | 17.74% | 18.44% | 18.18% | 18.78% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,702,998K ÷ $12,414,050K
= 13.72%
The pretax margin of Royal Caribbean Group has shown a volatile trend over the past eight quarters.
In Q1 2022 and Q2 2022, the company experienced significantly negative pretax margins, with -207.74% and -95.46% respectively. These numbers indicate that the company's pre-tax income was insufficient to cover its operating expenses and interest payments during those quarters.
There was a slight improvement in Q3 2022 with a pretax margin of -41.73%, although still deep in negative territory.
The company continued to show progress in Q4 2022 and Q1 2023, with pretax margins of -24.39% and -9.72% respectively. While negative, these numbers suggest that the company's performance was improving gradually.
A significant turnaround was witnessed in Q2 2023, where the pretax margin turned positive at -0.44%. This marks a potential inflection point in the company's financial performance, indicating a possible return to profitability.
The positive momentum continued into Q3 2023, with the pretax margin further increasing to 7.02%. This upward trend suggests that the company may be successfully managing its costs and generating more profitable operations.
Overall, the analysis of Royal Caribbean Group's pretax margin demonstrates a challenging period in recent quarters, followed by a notable recovery in profitability more recently.
Peer comparison
Dec 31, 2023