Royal Caribbean Cruises Ltd (RCL)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	1,697,000	-2,156,000	-5,260,500	-5,797,460	1,878,890
Total stockholders’ equity	US$ in thousands	4,724,000	2,869,000	5,085,560	8,760,670	12,163,800
ROE		35.92%	-75.15%	-103.44%	-66.18%	15.45%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,697,000K ÷ $4,724,000K
= 35.92%

The return on equity (ROE) for Royal Caribbean Group has shown significant fluctuations over the past five years. In particular, the company experienced a positive ROE of 35.92% in 2023, following several years of negative ROE figures. The negative ROE values in 2022, 2021, 2020, and 2019 indicate that the company's net income was insufficient to generate returns on shareholders' equity during those years.

The drastic improvement in ROE in 2023 suggests that Royal Caribbean Group managed to enhance its profitability and efficiency in that specific year. The negative ROE values in the prior years could be attributed to challenges faced by the company, such as the impact of the COVID-19 pandemic on the cruise industry, which significantly disrupted operations and financial performance.

It is essential for investors and stakeholders to further investigate the factors behind these fluctuations in ROE to assess the company's financial health and performance sustainability. Overall, the positive turnaround in ROE in 2023 is a positive sign, but a thorough analysis of the company's financial statements and business strategy is recommended for a comprehensive understanding of its future prospects.