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 Balance Sheet: Liabilities and Stockholders’ Equity

Royal Caribbean Cruises Ltd., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Current portion of long-term debt 6.95 2.96 3.91 5.95 5.33
Commercial paper 0.00 1.26 4.73 2.80 0.00
Current portion of operating lease liabilities 0.21 0.32 0.32 0.00 0.00
Accounts payable 1.69 1.09 1.86 1.76 1.62
Accrued interest 0.78 0.78 0.23 0.27 0.21
Accrued expenses and other liabilities 2.75 1.90 3.56 3.25 4.05
Derivative financial instruments 0.39 0.17 0.31 0.28 0.21
Customer deposits 9.80 5.50 11.31 11.37 10.06
Current liabilities 22.59% 13.98% 26.23% 25.68% 21.48%
Long-term debt, excluding current portion 58.43 55.31 27.75 30.17 28.48
Long-term operating lease liabilities 1.66 1.74 1.98 0.00 0.00
Other long-term liabilities 1.57 1.99 2.04 2.11 2.03
Long-term liabilities 61.65% 59.04% 31.77% 32.27% 30.52%
Total liabilities 84.23% 73.02% 58.00% 57.95% 52.00%
Redeemable noncontrolling interest 0.00 0.00 1.88 1.96 0.00
Preferred stock, $0.01 par value; none outstanding 0.00 0.00 0.00 0.00 0.00
Common stock, $0.01 par value 0.01 0.01 0.01 0.01 0.01
Paid-in capital 23.43 18.48 11.52 12.35 15.20
Retained earnings 0.94 17.13 38.01 37.05 40.47
Accumulated other comprehensive loss -2.20 -2.28 -2.63 -2.27 -1.50
Treasury stock, common shares at cost -6.40 -6.36 -6.79 -7.05 -6.18
Shareholders’ equity 15.77% 26.98% 40.12% 40.09% 48.00%
Total liabilities and shareholders’ equity 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 capital structure exhibits a significant shift toward higher leverage over the five-year period, characterized by a substantial increase in total liabilities and a corresponding erosion of shareholders' equity. Total liabilities rose steadily from 52.00% of the total balance sheet in 2017 to 84.23% by 2021, with the most pronounced acceleration occurring between 2019 and 2021.

Long-Term Debt Obligations
A dramatic increase in long-term debt, excluding the current portion, is observed. This component remained relatively stable between 27.75% and 30.17% from 2017 through 2019, before surging to 55.31% in 2020 and 58.43% in 2021. This indicates a heavy reliance on long-term borrowing to sustain operations or manage liquidity during the latter part of the period.
Shareholders' Equity and Retained Earnings
Shareholders' equity experienced a severe contraction, declining from 48.00% in 2017 to 15.77% in 2021. This decline is primarily driven by the collapse of retained earnings, which fell from a peak of 40.47% in 2017 to near-zero levels at 0.94% by 2021. This trend suggests significant accumulated losses that have nearly exhausted the company's retained profits.
Equity Financing and Capital Contributions
Paid-in capital increased from 15.20% in 2017 to 23.43% in 2021. This upward trend suggests that the company engaged in equity issuance to bolster its capital base and offset the rapid depletion of retained earnings.
Current Liabilities and Customer Deposits
Current liabilities showed volatility, peaking at 26.23% in 2019 before dropping to 13.98% in 2020 and rebounding to 22.59% in 2021. A key driver of this fluctuation was customer deposits, which remained stable around 10-11% through 2019, dipped to 5.50% in 2020, and recovered to 9.80% in 2021, reflecting changes in booking activity and prepaid revenue.
Overall Financial Leverage
The balance sheet reflects a transition from a moderately leveraged position to a highly leveraged one. By 2021, the combination of increased long-term debt and the depletion of equity reserves indicates a heightened financial risk profile and a decreased solvency margin compared to the 2017 baseline.

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