Royal Caribbean Cruises Ltd (RCL)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,129,000 | 4,098,052 | 3,733,102 | 3,400,880 | 2,916,493 | 2,222,055 | 1,251,430 | 245,833 | -884,988 | -1,823,312 | -3,086,783 | -3,810,699 | -3,751,277 | -3,527,516 | -3,474,521 | -3,725,396 | -3,151,224 | -2,027,632 | -226,832 | 1,535,992 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 7,563,000 | 7,045,000 | 6,008,000 | 5,151,000 | 4,724,000 | 4,422,980 | 3,363,650 | 2,851,620 | 2,868,810 | 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 |
| Return on total capital | 54.59% | 58.17% | 62.14% | 66.02% | 61.74% | 50.24% | 37.20% | 8.62% | -30.85% | -56.88% | -90.84% | -95.53% | -73.76% | -54.54% | -44.07% | -40.62% | -35.97% | -24.35% | -2.53% | 15.01% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,129,000K ÷ ($—K + $7,563,000K)
= 54.59%
The return on total capital for Royal Caribbean Cruises Ltd has shown a volatile pattern over the periods from March 31, 2020, to December 31, 2024. The trend started positively at 15.01% in March 31, 2020, but then declined significantly in subsequent quarters. The return on total capital was negative in most quarters up to December 31, 2022, reaching its lowest point of -95.53% in March 31, 2022.
However, a positive turnaround began in the first quarter of 2023, with a return on total capital of 8.62%, and this upward trend continued through the following quarters. By December 31, 2024, the return on total capital had improved to 54.59%.
This improvement indicates that the company has been able to increase its profitability relative to the capital invested in its operations. The strong rebound in the return on total capital in 2023 and 2024 suggests that Royal Caribbean Cruises Ltd may have implemented successful strategies to enhance its operational efficiency and profitability.
Peer comparison
Dec 31, 2024