Royal Caribbean Cruises Ltd (RCL)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	7,563,000	4,724,000	2,868,810	5,085,560	8,760,670
ROE		38.04%	35.92%	-73.20%	-129.24%	-74.25%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $2,877,000K ÷ $7,563,000K
= 38.04%

Based on the provided data, Royal Caribbean Cruises Ltd's return on equity (ROE) has exhibited significant fluctuations over the years.

In December 2020, the ROE was at a low level of -74.25%, indicating that the company's net income was insufficient to generate a positive return on shareholders' equity. This suggests that the company faced challenges in effectively utilizing its equity to generate profits during that period.

The ROE deteriorated further by December 2021, declining to -129.24%. This significant decrease indicates a worsening performance in terms of generating profits relative to the equity invested by shareholders.

However, there was a notable turnaround in December 2023, with the ROE improving to 35.92%. This positive shift suggests that the company was able to generate a substantial return on shareholders' equity, indicating improved financial performance and efficiency in capital utilization.

By December 2024, the ROE increased further to 38.04%, demonstrating continued improvement in the company's profitability and efficiency in utilizing shareholder equity.

Overall, the ROE trend for Royal Caribbean Cruises Ltd shows a period of challenges and negative returns followed by a significant improvement in profitability and efficiency. It is important for investors and stakeholders to monitor future ROE performance to assess the company's ability to sustain and improve its profitability and value creation for shareholders.