Royal Caribbean Cruises Ltd (RCL)

Financial leverage ratio

		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
Total assets	US$ in thousands	37,070,000	37,067,000	36,974,000	35,190,000	35,131,000	32,768,700	32,923,300	32,870,500	33,776,400	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
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
Financial leverage ratio		4.90	5.26	6.15	6.83	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

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $37,070,000K ÷ $7,563,000K
= 4.90

Royal Caribbean Cruises Ltd's financial leverage ratio has shown a fluctuating trend over the period from March 31, 2020, to December 31, 2024. The ratio started at 3.27 in March 2020 and increased gradually to reach its peak at 11.77 by December 31, 2022. Subsequently, the ratio began to decline, reaching 4.90 by December 31, 2024.

The increasing trend from 2020 to 2022 indicates a higher level of financial leverage, suggesting that the company relied more on debt to finance its operations and growth during this period. However, the decreasing trend from 2022 to 2024 may indicate a shift towards deleveraging or a decrease in debt relative to equity.

Overall, the higher financial leverage ratios in the earlier years could imply increased financial risk due to higher debt levels, while the decline in the ratio in later years may indicate efforts to reduce leverage and improve the company's financial health. It would be important to assess the reasons behind these changes and their impact on the company's financial stability and growth prospects.