Royal Caribbean Cruises Ltd (RCL)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	2,877,000	1,697,000	-2,099,830	-6,572,540	-6,504,620
Total assets	US$ in thousands	37,070,000	35,131,000	33,776,400	32,258,400	32,465,200
ROA		7.76%	4.83%	-6.22%	-20.37%	-20.04%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $2,877,000K ÷ $37,070,000K
= 7.76%

The return on assets (ROA) for Royal Caribbean Cruises Ltd has exhibited significant fluctuations over the years. Starting from a negative figure of -20.04% in December 2020, the company's ROA remained negative at -20.37% in December 2021, indicating that the company was experiencing challenges in generating profit relative to its assets.

However, there was a notable improvement in December 2022, with the ROA showing a less negative figure of -6.22%. This improvement suggests that the company may have taken steps to enhance its operational efficiency or asset utilization.

Subsequently, Royal Caribbean Cruises Ltd saw a positive turnaround in its ROA in December 2023, reaching 4.83%, and further improved to 7.76% by December 2024. These positive ROA figures indicate that the company is generating healthy profits relative to its assets, reflecting a more efficient use of resources and potentially stronger financial performance during these periods.

Overall, the trend in Royal Caribbean Cruises Ltd's ROA demonstrates a journey from negative returns to positive returns, indicating potential improvements in its operational performance and profitability over the specified time frame.