Royal Caribbean Cruises Ltd (RCL)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 35,131,000 | 33,776,000 | 32,258,400 | 32,465,200 | 30,320,300 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $35,131,000K
= 0.00
The debt-to-assets ratio of Royal Caribbean Group has fluctuated over the past five years, ranging from 0.36 to 0.69. This ratio indicates the proportion of the company's assets financed by debt. In 2023, the ratio stands at 0.61, showing a decrease from the previous year, suggesting a more conservative approach to debt utilization.
A higher debt-to-assets ratio typically indicates higher financial risk, as a greater portion of assets is funded by debt. Conversely, a lower ratio implies a lower reliance on debt financing, which can be seen as a positive sign by investors and creditors.
It is essential for Royal Caribbean Group to monitor and manage its debt levels effectively to maintain a healthy balance between debt and assets. The downward trend in the debt-to-assets ratio over recent years may reflect improved financial stability or strategic decisions to reduce debt exposure. However, ongoing monitoring and prudent financial planning will be crucial for sustaining healthy financial performance in the future.
Peer comparison
Dec 31, 2023