Royal Caribbean Cruises Ltd (RCL)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,877,996 | 2,323,745 | 1,357,070 | 366,845 | -763,976 | -1,811,167 | -3,115,412 | -3,920,298 | -3,870,321 | -3,855,131 | -3,845,425 | -4,104,385 | -4,601,564 | -3,285,589 | -1,398,683 | 457,460 | 2,082,701 | 2,147,303 | 2,056,244 | 1,939,486 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 60.92% | 52.54% | 40.35% | 12.86% | -26.63% | -56.50% | -91.68% | -98.28% | -76.10% | -59.61% | -48.77% | -44.75% | -52.53% | -39.45% | -15.60% | 4.47% | 17.12% | 17.93% | 17.82% | 17.21% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,877,996K ÷ ($—K + $4,724,000K)
= 60.92%
Royal Caribbean Group's return on total capital has shown varying performance over the past eight quarters. In Q4 2023, the return on total capital stood at 11.76%, indicating the company generated $0.1176 in profit for every $1 of total capital employed. This was an improvement compared to previous quarters, with Q3 2023 at 10.25% and Q2 2023 at 6.45%. However, the return on total capital was significantly lower in Q1 2023 at 1.96%.
The performance in the previous year Q4 2022 was negative, with a return on total capital of -2.69%. This followed a downward trend from Q3 2022 (-6.55%) to Q2 2022 (-11.86%) and Q1 2022 (-14.89%). The negative returns during these quarters indicate that the company's profits were insufficient to cover the capital employed, reflecting potential operational challenges or inefficiencies.
Overall, the return on total capital for Royal Caribbean Group has fluctuated significantly in recent quarters, highlighting the importance of monitoring and analyzing this metric to assess the company's profitability and capital utilization efficiency.
Peer comparison
Dec 31, 2023