Royal Caribbean Cruises Ltd (RCL)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 42.99% | 40.27% | 39.11% | 40.53% | 41.53% | 41.80% | 37.64% | 32.29% | 25.18% | 17.34% | -3.04% | -39.60% | -73.45% | -206.03% | -1,273.10% | -605.17% | -25.19% | 15.15% | 33.07% | 41.58% |
| Operating profit margin | 25.13% | 25.56% | 24.37% | 22.94% | 20.82% | 16.81% | 10.39% | 2.30% | -10.01% | -25.24% | -66.77% | -153.78% | -252.61% | -660.10% | -4,118.07% | -1,882.14% | -208.33% | -70.02% | -17.68% | 4.34% |
| 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% |
| Net profit margin | 17.46% | 16.21% | 16.31% | 14.28% | 7.32% | 2.02% | -5.99% | -15.84% | -24.44% | -42.16% | -95.90% | -208.96% | -343.34% | -902.44% | -5,560.85% | -2,515.11% | -262.47% | -88.60% | -24.36% | 1.75% |
The profitability ratios of Royal Caribbean Cruises Ltd have shown a significant fluctuation over the past few years. The gross profit margin experienced a sharp decline in late 2020 and early 2021, reaching negative percentages, indicating a significant decrease in profitability during that period. However, starting from the second half of 2022, the gross profit margin started to improve and returned to positive territory by the end of 2022 and into 2024, reaching levels above 40%.
Similarly, the operating profit margin and pretax margin also displayed a downward trend in late 2020 and early 2021, reflecting a sharp decline in operating and pre-tax profitability. However, both margins began to recover from mid-2022 onwards, showing a positive trend and reaching levels above 20% by the end of 2024.
The net profit margin followed a similar pattern, with negative margins in late 2020 and early 2021, indicating substantial losses during that period. The net profit margin gradually improved from the second half of 2022, turning positive by the end of 2023 and increasing further in 2024, reaching levels above 15%.
Overall, the profitability ratios of Royal Caribbean Cruises Ltd have shown a recovery trend in recent years, with margins returning to positive levels and demonstrating an improving financial performance.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.18% | 11.07% | 10.10% | 9.61% | 8.24% | 6.76% | 3.79% | 0.75% | -2.62% | -5.45% | -9.21% | -11.90% | -12.00% | -11.80% | -11.41% | -11.95% | -14.17% | -10.32% | -4.20% | 1.37% |
| Return on assets (ROA) | 7.76% | 7.02% | 6.76% | 5.98% | 2.90% | 0.81% | -2.19% | -5.14% | -6.40% | -9.09% | -13.23% | -16.17% | -16.31% | -16.13% | -15.41% | -15.97% | -17.86% | -13.06% | -5.79% | 0.55% |
| Return on total capital | 54.59% | 58.17% | 62.14% | 66.02% | 61.74% | 50.24% | 37.20% | 8.62% | -30.85% | -56.88% | -90.84% | -95.53% | -73.76% | -54.54% | -44.07% | -40.62% | -35.97% | -24.35% | -2.53% | 15.01% |
| Return on equity (ROE) | 38.05% | 36.94% | 41.61% | 40.86% | 21.55% | 6.03% | -21.40% | -59.23% | -75.31% | -94.94% | -132.15% | -133.55% | -103.44% | -81.49% | -65.86% | -59.80% | -66.18% | -49.92% | -21.50% | 1.81% |
Royal Caribbean Cruises Ltd experienced a challenging period in terms of profitability ratios from March 2020 to June 2023, with negative figures indicating a decline in profitability. Operating return on assets (Operating ROA) hovered around negative values, showing a downward trend until March 2023.
Return on assets (ROA) also followed a similar downward trajectory, indicating decreasing efficiency in generating profits from its assets. Return on total capital also reflected a decline in profitability, reaching significantly negative values during the same period.
However, the company showed signs of improvement in profitability ratios from June 2023 onwards, with increasing values for Operating ROA, ROA, and Return on total capital. Return on equity (ROE) also displayed a positive trend from March 2023, indicating a recovery in generating profits for shareholders.
Overall, the financial performance of Royal Caribbean Cruises Ltd improved from 2023 onwards, with profitability ratios showing a positive trajectory, indicating a potential turnaround in the company's profitability.
See also:
Royal Caribbean Cruises Ltd Profitability Ratios (Quarterly Data)