Royal Caribbean Cruises Ltd (RCL)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,105,000 | -763,976 | -3,870,330 | -4,601,560 | 2,082,700 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 4,724,000 | 2,869,000 | 5,085,560 | 8,760,670 | 12,163,800 |
| Return on total capital | 65.73% | -26.63% | -76.10% | -52.53% | 17.12% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,105,000K ÷ ($—K + $4,724,000K)
= 65.73%
The return on total capital for Royal Caribbean Group has experienced fluctuations over the past five years. In 2023, the return on total capital was 11.76%, representing a positive performance. This indicates that the company generated a return of 11.76% on its total capital employed during the year.
In contrast, the return on total capital was negative in 2022 and 2021, at -2.69% and -14.99% respectively. This suggests that the company's capital investments did not yield favorable returns during those years.
Furthermore, in 2020 and 2019, the return on total capital was also negative, at -11.56% and 9.97% respectively. Despite a negative return in 2020, there was a rebound in 2019 with a positive return of 9.97%.
Overall, the analysis of Royal Caribbean Group's return on total capital reveals a mixed performance over the past five years, with fluctuations in profitability and efficiency in utilizing its total capital.
Peer comparison
Dec 31, 2023