Royal Caribbean Cruises Ltd (RCL)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $4,724,000K
= 0.00
The debt-to-equity ratio of Royal Caribbean Group has shown significant fluctuations over the past five years. In 2019, the ratio was relatively low at 0.91, indicating a conservative capital structure with lower reliance on debt. However, by 2022, the ratio had increased significantly to 8.15, suggesting a substantial increase in debt relative to equity.
In 2023, the debt-to-equity ratio decreased to 4.54, reflecting a lower level of debt compared to the previous year but still indicating a higher level of debt compared to equity. This may indicate a shift towards reducing debt levels or strengthening equity in the capital structure of the company.
Overall, the fluctuation in the debt-to-equity ratio of Royal Caribbean Group highlights the changing capital structure and financial leverage of the company over the years, which could impact its risk profile and financial stability.
Peer comparison
Dec 31, 2023