Royal Caribbean Cruises Ltd (RCL)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,117,000 | 3,016,000 | -803,470 | -4,002,200 | -4,951,150 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 7,563,000 | 4,724,000 | 2,868,810 | 5,085,560 | 8,760,670 |
| Return on total capital | 54.44% | 63.84% | -28.01% | -78.70% | -56.52% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,117,000K ÷ ($—K + $7,563,000K)
= 54.44%
The return on total capital for Royal Caribbean Cruises Ltd has exhibited significant fluctuations over the past five years. In December 2020, the company reported a negative return on total capital of -56.52%, indicating that the business generated a return lower than the total capital employed. This negative trend worsened in December 2021, with a further decline to -78.70%.
The company displayed signs of improvement in December 2022 when the return on total capital improved to -28.01%, though still negative. The most notable turnaround occurred in December 2023 when Royal Caribbean Cruises Ltd reported a substantial positive return on total capital of 63.84%, reflecting a significant increase in profitability in relation to the capital invested.
Continuing this positive momentum, in December 2024, the return on total capital remained strong at 54.44%, indicating a solid performance in utilizing the total capital to generate profits. Overall, Royal Caribbean Cruises Ltd has demonstrated a volatile trend in return on total capital, with recent years showing a notable recovery and improvement in profitability efficiency.
Peer comparison
Dec 31, 2024