Royal Caribbean Cruises Ltd (RCL)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 6.67% | 9.42% | 1.17% | -8.99% | -25.00% | -50.58% | -130.83% | -332.73% | -629.98% | -2,462.18% | -3,860.71% | -2,965.16% | -233.45% | -45.39% | 0.78% | 22.09% | 37.47% | 36.36% | 36.71% | 36.90% |
| 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% |
| 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% |
| Net profit margin | 13.67% | 7.94% | -0.54% | -11.36% | -29.13% | -50.32% | -132.39% | -342.10% | -650.26% | -3,456.25% | -5,560.92% | -4,019.02% | -301.96% | -94.42% | -25.69% | 1.83% | 17.67% | 18.39% | 18.16% | 18.76% |
The profitability ratios of Royal Caribbean Group have shown a positive trend in recent quarters. The gross profit margin has been consistently increasing, reaching 65.62% in Q4 2023, indicating the company is effectively managing its production costs and generating more revenue from its operations.
Similarly, the operating profit margin has also improved steadily, standing at 20.71% in Q4 2023. This suggests that the company has been able to control its operating expenses efficiently and enhance its operational efficiency.
The pretax margin has shown a mixed performance but has generally improved from negative figures in Q1 2022 to a positive 12.26% in Q4 2023. This indicates that the company's profitability before accounting for taxes has strengthened over time.
Finally, the net profit margin, which reflects the company's profitability after all expenses have been deducted, has seen a significant improvement, moving from negative figures in the past to a positive 12.21% in Q4 2023. This signifies that Royal Caribbean Group has been able to effectively manage its costs and streamline its operations to generate higher profits for its shareholders.
Return on investment
| 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 return on assets (Operating ROA) | 8.19% | 7.09% | 4.12% | 1.12% | -2.26% | -5.41% | -9.18% | -11.90% | -12.00% | -11.80% | -11.41% | -11.95% | -14.17% | -10.32% | -4.20% | 1.37% | 6.87% | 7.20% | 6.90% | 6.75% |
| Return on assets (ROA) | 4.83% | 2.81% | -0.17% | -3.15% | -6.38% | -9.00% | -13.17% | -16.08% | -16.31% | -16.13% | -15.41% | -15.97% | -17.86% | -13.06% | -5.79% | 0.55% | 6.20% | 6.44% | 6.20% | 6.41% |
| Return on total capital | 60.92% | 52.54% | 40.35% | 12.86% | -26.63% | -56.50% | -91.68% | -98.28% | -76.10% | -59.61% | -48.77% | -44.75% | -52.53% | -39.45% | -15.60% | 4.47% | 17.12% | 17.93% | 17.82% | 17.21% |
| Return on equity (ROE) | 35.92% | 20.79% | -1.68% | -36.36% | -75.15% | -93.99% | -131.55% | -132.77% | -103.44% | -81.49% | -65.86% | -59.80% | -66.18% | -49.92% | -21.50% | 1.81% | 15.45% | 16.04% | 16.02% | 16.35% |
Royal Caribbean Group's profitability ratios show a mixed performance over the quarters. The Operating return on assets (Operating ROA) has been steadily increasing from 1.27% in Q1 2023 to 8.19% in Q4 2023, indicating improved operational efficiency in generating profits from its assets. The Return on assets (ROA) also shows a positive trend, moving from -3.15% in Q1 2023 to 4.83% in Q4 2023, reflecting the company's ability to generate profits relative to its total assets.
Return on total capital has shown a fluctuating pattern, with peaks at 11.76% in Q4 2023 and troughs at -14.89% in Q1 2022. This ratio assesses the profitability of the company's total invested capital, including debt and equity.
However, Return on equity (ROE) displays more variability, ranging from a high of 35.92% in Q4 2023 to negative figures, such as -132.77% in Q1 2022. ROE reflects the company's ability to generate profits from shareholder investments. The significant negative ROE figures in some quarters could indicate challenges in generating returns for equity holders.
Overall, the improving trends in Operating ROA and ROA are positive indicators of operational efficiency and profitability for Royal Caribbean Group. Still, the fluctuating performance of Return on total capital and the volatile nature of ROE suggest that the company may face challenges in generating consistent returns for its capital providers.
See also:
Royal Caribbean Cruises Ltd Profitability Ratios (Quarterly Data)