Royal Caribbean Cruises Ltd (RCL)

Financial leverage ratio

		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
Total assets	US$ in thousands	35,131,000	32,768,700	32,923,300	32,870,500	33,776,000	33,464,200	33,943,200	32,940,000	32,258,400	32,665,600	33,692,000	34,347,100	32,465,200	31,828,800	33,306,500	33,445,100	30,320,300	29,825,500	29,809,000	28,720,000
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
Financial leverage ratio		7.44	7.41	9.79	11.53	11.77	10.44	9.99	8.26	6.34	5.05	4.27	3.74	3.71	3.82	3.72	3.27	2.49	2.49	2.58	2.55

December 31, 2023 calculation

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

The financial leverage ratio of Royal Caribbean Group has exhibited fluctuations over the past eight quarters. In Q1 2022, the ratio was at its lowest point at 8.26, indicating that the company relied less on debt to finance its operations. Subsequently, the ratio increased in Q2 and Q3 2022, reaching 9.99 and 10.44, respectively.

However, in the last two quarters of 2022 and continuing into 2023, the financial leverage ratio saw a significant uptrend. In Q4 2022, the ratio stood at 11.77, which was followed by a slight decrease in Q1 2023 to 11.53. Notably, in Q2 2023, the ratio spiked to 9.79, showcasing a sharp reduction in leverage.

Overall, the fluctuating trend of the financial leverage ratio suggests varying degrees of reliance on debt to fund the company's assets and operations. This may indicate shifts in the company's capital structure and financial risk profile over the analyzed period.