Royal Caribbean Cruises Ltd (RCL)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	35,131,000	33,776,000	32,258,400	32,465,200	30,320,300
Total stockholders’ equity	US$ in thousands	4,724,000	2,869,000	5,085,560	8,760,670	12,163,800
Financial leverage ratio		7.44	11.77	6.34	3.71	2.49

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $35,131,000K ÷ $4,724,000K
= 7.44

The financial leverage ratio for Royal Caribbean Group has fluctuated over the past five years. The ratio increased significantly from 2019 to 2020, indicating a higher level of financial leverage in the company's capital structure. In 2021, there was a decrease in the financial leverage ratio, which suggests a reduction in the company's reliance on debt to finance its operations. However, in 2022, the ratio spiked back up, reaching its highest point in the past five years. This potentially indicates increased debt levels or a reduction in equity during that period.

In 2023, the financial leverage ratio decreased compared to the previous year but remained elevated compared to historical levels. This continued high ratio may indicate a higher level of financial risk associated with the company's capital structure. Overall, the trend in Royal Caribbean Group's financial leverage ratio reflects fluctuations in the company's debt-to-equity mix and highlights the importance of monitoring leverage levels to assess the company's financial health and risk profile over time.