Stock Analysis on Net
Stock Analysis on Net

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 Income Statement 

Royal Caribbean Cruises Ltd., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Passenger ticket revenues 61.43 68.12 71.75 71.55 71.92
Onboard and other revenues 38.57 31.88 28.25 28.45 28.08
Revenues 100.00% 100.00% 100.00% 100.00% 100.00%
Commissions, transportation and other -13.55 -15.60 -15.13 -15.10 -15.53
Onboard and other -7.63 -7.12 -5.84 -5.66 -5.65
Payroll and related -54.70 -35.69 -9.85 -9.74 -9.72
Food -10.73 -7.32 -5.33 -5.49 -5.61
Fuel -25.15 -16.80 -6.37 -7.49 -7.76
Other operating -61.69 -42.66 -12.84 -11.95 -11.52
Cruise operating expenses -173.45% -125.19% -55.36% -55.43% -55.78%
Gross profit (loss) -73.45% -25.19% 44.64% 44.57% 44.22%
Marketing, selling and administrative expenses -89.42 -54.31 -14.24 -13.73 -13.51
Depreciation and amortization expenses -84.38 -57.92 -11.38 -10.89 -10.84
Impairment and credit losses -5.35 -70.92 0.00 0.00 0.00
Operating income (loss) -252.61% -208.33% 19.02% 19.96% 19.87%
Interest income 1.09 0.95 0.25 0.35 0.34
Interest expense, net of interest capitalized -84.31 -38.22 -3.73 -3.51 -3.42
Equity investment income (loss) -8.84 -9.66 2.11 2.22 1.78
Other income (expense) -1.63 -6.89 0.07 0.34 0.15
Other income (expense) -93.68% -53.81% -1.30% -0.61% -1.15%
Income (loss) before income taxes -346.29% -262.14% 17.72% 19.35% 18.72%
Income tax (expense) benefit 2.95 0.68 -0.30 -0.22 -0.21
Net income (loss) -343.34% -261.46% 17.42% 19.13% 18.51%
Net income attributable to noncontrolling interest 0.00 -1.01 -0.26 -0.05 0.00
Net income (loss) attributable to Royal Caribbean Cruises Ltd. -343.34% -262.47% 17.16% 19.08% 18.51%

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).

Revenue Composition
There is a noticeable decline in the share of passenger ticket revenues as a percentage of total revenues, decreasing from 71.92% in 2017 to 61.43% in 2021. Conversely, onboard and other revenues display an increasing trend, rising from 28.08% to 38.57% over the same period. This indicates a shift in revenue sources, with greater reliance on onboard services and ancillary activities.
Cost Structure
Costs related to commissions, transportation and other show a general decrease as a proportion of revenues, from -15.53% in 2017 to -13.55% in 2021. However, other cost categories exhibit sharp increases relative to revenues in 2020 and 2021. Payroll and related expenses rise dramatically from approximately -9.7% before 2020 to -54.7% in 2021. Food costs increase steadily, with an accelerated rise in later years, reaching -10.73% in 2021. Fuel costs also show significant escalation, particularly from 2019 onward, culminating at -25.15% in 2021. Other operating expenses increase substantially, notably surging to -61.69% in 2021 from around -12% in prior years.
Operating Profitability
Gross profit margin remains relatively stable around 44% from 2017 to 2019 but turns sharply negative in 2020 and 2021, with losses of -25.19% and -73.45% respectively. Operating income follows a similar pattern, being positive around 19% up to 2019 and then plunging to substantial negative values in 2020 and 2021, with -208.33% and -252.61% respectively.
Operating Expenses
Marketing, selling, and administrative expenses increase markedly relative to revenues in 2020 and 2021, reaching -89.42% in 2021. Depreciation and amortization expenses also follow this upward trend, rising from roughly -11% to -84.38% over the period. Impairment and credit losses are recorded only in 2020 and 2021, with an extremely high expense of -70.92% in 2020, reflecting significant write-downs or asset impairments.
Financial Expenses and Income
Interest expense net of capitalized interest grows substantially, from around -3.5% pre-2020 to -84.31% in 2021, indicating heavier financing costs or increased debt levels. Interest income, however, shows a slight increase, reaching 1.09% in 2021. Equity investment losses also deepen in 2020 and 2021, contributing negatively to income before tax.
Bottom Line Performance
The income before income taxes and net income both display strong positive margins through 2019 but deteriorate sharply in 2020 and 2021. Net income shifts from double-digit positive percentages of revenues in 2017–2019 to severe losses of -261.46% in 2020 and -343.34% in 2021. The income tax expense turns into a benefit during 2020 and 2021, partially offsetting losses. The net income attributable to the company mirrors this pattern of steep decline.
Summary of Trends
The data reveals a pronounced downturn in financial performance beginning in 2020, characterized by a massive increase in operating and other expenses relative to revenues, leading to significant losses. The revenue mix has shifted slightly, but this is overshadowed by escalating costs and impairments. The increased financial expenses and impairment charges highlight considerable financial strain. Overall, the trend underscores a challenging operating environment with deteriorated profitability and financial health in the most recent years.