Royal Caribbean Cruises Ltd (RCL)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	1,697,004	919,725	-56,387	-1,036,730	-2,155,960	-3,012,724	-4,470,242	-5,295,920	-5,260,500	-5,270,470	-5,192,680	-5,484,710	-5,797,470	-4,157,394	-1,927,394	184,726	1,878,887	1,921,454	1,848,605	1,842,070
Total stockholders’ equity	US$ in thousands	4,724,000	4,422,980	3,363,650	2,851,620	2,869,000	3,205,420	3,398,100	3,988,930	5,085,560	6,467,500	7,884,020	9,172,380	8,760,670	8,328,590	8,963,900	10,231,800	12,163,800	11,976,900	11,538,400	11,269,100
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%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,697,004K ÷ $4,724,000K
= 35.92%

Royal Caribbean Group's return on equity (ROE) has shown significant fluctuations over the past eight quarters. In Q4 2023, the ROE was 35.92%, indicating a strong performance in generating profits relative to shareholders' equity. This represents an improvement compared to the previous quarter's ROE of 20.79% in Q3 2023.

However, the company experienced negative ROE in the second and first quarters of 2023, with -1.68% and -36.36% respectively. This negative trend had been ongoing since Q4 2022, where the ROE was -75.15%, followed by further declines in Q1-Q3 2022.

The sharp decline in ROE from Q4 2022 to Q1 2022, where the figures were -75.15% and -132.77% respectively, indicates a significant deterioration in the company's ability to generate profits relative to shareholders' equity during that period.

Overall, Royal Caribbean Group's ROE performance has been volatile, with both positive and negative fluctuations observed in recent quarters. The company may need to focus on improving profitability and effectively utilizing shareholders' equity to enhance ROE in the future.