Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Royal Caribbean Cruises Ltd., common-size consolidated balance sheet: liabilities and stockholders’ equity
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).
- Current portion of long-term debt
- Displayed a downward trend from 5.33% in 2017 to 2.96% in 2020, before increasing to 6.95% in 2021, indicating fluctuating short-term debt obligations relative to total liabilities and equity.
- Commercial paper
- Absent in 2017, it rose to 4.73% in 2019, declined sharply to 1.26% in 2020, and was not recorded in 2021. This suggests a temporary use of short-term financing through commercial paper, with a reduction during the pandemic year 2020 and no evident use thereafter.
- Current portion of operating lease liabilities
- First recorded in 2019 at 0.32%, held steady in 2020, then declined to 0.21% in 2021, reflecting relatively stable and slightly decreasing lease-related short-term liabilities.
- Accounts payable
- Increased modestly from 1.62% in 2017 to 1.86% in 2019, dropped significantly to 1.09% in 2020, before recovering to 1.69% in 2021. This pattern indicates lower trade payables during 2020, perhaps reflecting reduced operational activity, with a partial rebound the following year.
- Accrued interest
- Relatively low but stable in early years (0.21% to 0.27%), it rose sharply to 0.78% in 2020 and remained at that level in 2021, indicating increased interest obligations during and after the pandemic period.
- Accrued expenses and other liabilities
- Observed a decline from 4.05% in 2017 to 1.9% in 2020, followed by an increase to 2.75% in 2021, suggesting reduced accrued liabilities during peak pandemic restrictions with some restoration afterward.
- Derivative financial instruments
- Gradual increase from 0.21% in 2017 to 0.31% in 2019, a decrease to 0.17% in 2020, then rising to 0.39% in 2021, reflecting variability in derivative positions and risk management activities over time.
- Customer deposits
- Stable around 10-11% from 2017 through 2019, dropped sharply to 5.5% in 2020, then rose again to 9.8% in 2021. This pattern likely corresponds to reduced customer bookings during pandemic-related disruptions, with recovery signs in 2021.
- Current liabilities
- Increased from 21.48% in 2017 to a peak of 26.23% in 2019, then declined substantially to 13.98% in 2020, followed by a rebound to 22.59% in 2021. This reflects a contraction of short-term obligations during the pandemic year and partial normalization afterwards.
- Long-term debt, excluding current portion
- Showed a decreasing trend from 28.48% in 2017 to 27.75% in 2019, then rose sharply to 55.31% in 2020 and increased further to 58.43% in 2021. This significant increase indicates substantial long-term borrowing, likely to manage cash flow challenges during the pandemic.
- Long-term operating lease liabilities
- Introduced in 2019 at 1.98%, declining slightly to 1.66% by 2021, suggesting a controlled or reduced lease obligation with respect to total liabilities and equity over the period.
- Other long-term liabilities
- Relatively stable, ranging from 2.03% in 2017 to 1.57% in 2021, indicating consistent non-debt long-term obligations.
- Long-term liabilities
- Remained steady near 30% between 2017 and 2019 before rising dramatically to 59.04% in 2020 and 61.65% in 2021, driven primarily by increased long-term debt, signifying heightened leverage in the later years.
- Total liabilities
- Followed an increasing trajectory from 52% in 2017 to 58% in 2019, then spiked to 73.02% in 2020 and 84.23% in 2021, illustrating a substantial addition to overall liabilities relative to shareholders' equity, mainly due to pandemic-related financing needs.
- Redeemable noncontrolling interest
- Present only in 2018 and 2019 at around 1.9%, absent in other years, indicating minor involvement of redeemable minority interests during those periods.
- Common stock
- Consistently minimal at 0.01% throughout the period, showing stable and negligible par value representation relative to total capital structure.
- Paid-in capital
- Decreased from 15.2% in 2017 to 11.52% in 2019, then increased markedly to 23.43% in 2021, suggesting capital injections or equity transactions to strengthen financial position during and after the pandemic.
- Retained earnings
- Declined sharply from 40.47% in 2017 to 0.94% in 2021, with a particularly steep drop from 38.01% in 2019 to 17.13% in 2020, reflecting accumulated losses or dividend distributions reducing retained profits substantially during the pandemic period.
- Accumulated other comprehensive loss
- Consistently negative, ranging between -1.5% and -2.63%, with minor fluctuations, showing persistent comprehensive loss elements impacting equity.
- Treasury stock
- Remained negative and fairly stable between -6.18% and -7.05%, indicating repurchased stock held by the company, with slight reduction in absolute terms by 2021.
- Shareholders’ equity
- Declined significantly from 48% in 2017 to 15.77% in 2021, demonstrating a considerable erosion of equity relative to total capitalization, mainly driven by decreased retained earnings and increased liabilities.
- Total liabilities and shareholders’ equity
- Remained constant at 100% as expected, serving as the baseline for all proportional analyses.