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Royal Caribbean Cruises Ltd. (NYSE:RCL)

This company has been moved to the archive! The financial data has not been updated since July 29, 2022.

Common-Size Balance Sheet: Assets

Royal Caribbean Cruises Ltd., common-size consolidated balance sheet: assets

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Cash and cash equivalents 8.38 11.35 0.80 1.04 0.54
Trade and other receivables, net of allowances 1.26 0.88 1.01 1.17 1.43
Inventories 0.47 0.37 0.53 0.55 0.50
Prepaid expenses and other assets 0.89 0.48 1.42 1.65 0.87
Derivative financial instruments 0.17 0.22 0.07 0.07 0.45
Current assets 11.16% 13.28% 3.83% 4.48% 3.78%
Property and equipment, net 80.31 77.77 83.99 84.72 88.51
Operating lease right-of-use assets 1.68 1.85 2.27 0.00 0.00
Goodwill 2.51 2.49 4.57 4.98 1.29
Other assets, net of allowances 4.34 4.61 5.34 5.82 6.41
Non-current assets 88.84% 86.72% 96.17% 95.52% 96.22%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

The asset composition of the organization is characterized by a high concentration of non-current assets, predominantly property and equipment, reflecting a capital-intensive business model. A significant structural shift in the balance sheet is observable between 2019 and 2020, where the proportion of current assets increased substantially, driven primarily by a surge in cash reserves.

Liquidity and Current Asset Trends
Current assets maintained a low profile between 2017 and 2019, fluctuating between 3.78% and 4.48% of total assets. In 2020, this proportion rose sharply to 13.28% before settling at 11.16% in 2021. This increase is almost entirely attributable to cash and cash equivalents, which rose from a range of 0.54% to 1.04% in the pre-2020 period to a peak of 11.35% in 2020. Other current components, such as trade receivables and inventories, remained relatively stable or experienced slight declines as a percentage of total assets during the same period.
Fixed Asset Intensity
Property and equipment, net, constitutes the vast majority of the asset base. This item represented 88.51% of total assets in 2017, experiencing a gradual decline to 83.99% by 2019. A more pronounced dip occurred in 2020, reaching 77.77%, which correlates with the relative increase in cash holdings. By 2021, the proportion recovered slightly to 80.31%, confirming the continued dominance of physical infrastructure in the company's asset strategy.
Long-term Asset Adjustments
Non-current assets consistently represented over 86% of the total asset structure. Operating lease right-of-use assets first appeared in 2019 at 2.27%, likely reflecting changes in accounting standards, and remained stable through 2021. Goodwill showed volatility, increasing from 1.29% in 2017 to a peak of 4.98% in 2018, before decreasing to approximately 2.5% in 2020 and 2021. Other assets, net of allowances, demonstrated a steady downward trend, decreasing from 6.41% in 2017 to 4.34% by 2021.

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