Name: Royal Caribbean Cruises Ltd. (NYSE:RCL) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Royal Caribbean Cruises Ltd., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income (loss)	(5,260,499)	(5,775,130)	1,907,600)	1,815,792)	1,625,133)
Depreciation and amortization	1,292,878)	1,279,254)	1,245,942)	1,033,697)	951,194)
Impairment and credit losses	82,001)	1,566,380)	—)	33,651)	—)
Net deferred income tax expense (benefit)	(42,979)	(8,791)	7,745)	(2,679)	1,730)
(Gain) loss on derivative instruments not designated as hedges	(1,492)	49,316)	(1,431)	61,148)	(61,704)
Share-based compensation expense	63,638)	39,779)	75,930)	46,061)	69,459)
Equity investment (income) loss	135,469)	213,286)	(230,980)	(210,756)	(156,247)
Amortization of debt issuance costs	125,116)	89,442)	31,991)	41,978)	45,943)
Amortization of debt discounts and premiums	123,439)	66,776)	31,616)	11,004)	—)
Loss on extinguishment of debt	138,759)	41,109)	6,326)	—)	—)
Currency translation adjustment losses	—)	69,044)	—)	—)	—)
Change in fair value of contingent consideration	—)	(45,126)	18,400)	—)	—)
Gain on sale of property and equipment	—)	—)	—)	—)	(30,902)
Gain on sale of unconsolidated affiliate	—)	—)	—)	(13,680)	—)
Recognition of deferred gain	—)	—)	—)	(21,794)	—)
(Increase) decrease in trade and other receivables, net	(181,707)	121,055)	(9,898)	(9,573)	(32,043)
(Increase) decrease in inventories	(34,527)	27,077)	(8,533)	(23,849)	2,424)
(Increase) decrease in prepaid expenses and other assets	(152,071)	295,876)	15,669)	(71,770)	20,859)
Increase (decrease) in accounts payable	188,518)	(133,815)	75,281)	91,737)	36,780)
Increase (decrease) in accrued interest	(694)	182,578)	(4,460)	18,773)	1,303)
Increase (decrease) in accrued expenses and other liabilities	235,446)	(180,479)	96,490)	42,937)	34,215)
Increase (decrease) in customer deposits	1,426,647)	(1,643,560)	280,139)	385,990)	274,705)
Changes in operating assets and liabilities	1,481,612)	(1,331,268)	444,688)	434,245)	338,243)
Dividends received from unconsolidated affiliates	—)	2,215)	150,177)	243,101)	109,677)
Other, net	(15,757)	12,061)	28,362)	7,371)	(17,960)
Adjustments	3,382,684)	2,043,477)	1,808,766)	1,663,347)	1,249,433)
Net cash provided by (used in) operating activities	(1,877,815)	(3,731,653)	3,716,366)	3,479,139)	2,874,566)
Purchases of property and equipment	(2,229,704)	(1,965,131)	(3,024,663)	(3,660,028)	(564,138)
Cash received on settlement of derivative financial instruments	44,492)	15,874)	7,621)	76,529)	63,224)
Cash paid on settlement of derivative financial instruments	(74,249)	(161,335)	(68,836)	(98,074)	—)
Investments in and loans to unconsolidated affiliates	(70,228)	(100,609)	(25,569)	(27,172)	(10,396)
Cash received on loans to unconsolidated affiliates	31,334)	21,086)	32,870)	124,238)	62,303)
Proceeds from the sale of property and equipment and other assets	176,039)	27,796)	—)	—)	230,000)
Proceeds from the sale of unconsolidated affiliate	—)	—)	—)	13,215)	—)
Acquisition of Silversea Cruises, net of cash acquired	—)	—)	—)	(916,135)	—)
Other, net	(22,423)	(16,247)	(12,829)	(1,731)	5,415)
Net cash used in investing activities	(2,144,739)	(2,178,566)	(3,091,406)	(4,489,158)	(213,592)
Debt proceeds	4,467,789)	13,547,189)	3,525,564)	8,590,740)	5,866,966)
Debt issuance costs	(201,698)	(374,715)	(50,348)	(81,959)	(51,590)
Repayments of debt	(2,296,990)	(3,845,133)	(4,060,244)	(6,963,511)	(7,835,087)
Premium on repayment of debt	(135,372)	—)	—)	—)	—)
Proceeds from issuance of commercial paper notes	—)	6,765,816)	26,240,540)	4,730,286)	—)
Repayments of commercial paper notes	(414,570)	(7,837,635)	(25,613,111)	(3,965,450)	—)
Purchase of treasury stock	—)	—)	(99,582)	(575,039)	(224,998)
Dividends paid	—)	(326,421)	(602,674)	(527,494)	(437,455)
Proceeds from common stock issuances	1,621,860)	1,431,375)	—)	—)	—)
Other, net	(442)	(10,688)	(10,516)	(9,500)	6,368)
Net cash provided by (used in) financing activities	3,040,577)	9,349,788)	(670,371)	1,198,073)	(2,675,796)
Effect of exchange rate changes on cash	(727)	1,167)	1,297)	(20,314)	2,331)
Net increase (decrease) in cash and cash equivalents	(982,704)	3,440,736)	(44,114)	167,740)	(12,491)
Cash and cash equivalents at beginning of year	3,684,474)	243,738)	287,852)	120,112)	132,603)
Cash and cash equivalents at end of year	2,701,770)	3,684,474)	243,738)	287,852)	120,112)

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 financial trajectory between 2017 and 2021 is characterized by a period of stable growth followed by a severe operational crisis and a subsequent reliance on external financing to maintain liquidity. The transition from consistent positive operating cash flow to significant deficits highlights a period of extreme volatility in net income and working capital.

Operating Cash Flow Dynamics: Net income showed a steady upward trend from 2017 to 2019, peaking at approximately 1.9 billion USD, before collapsing into substantial losses of 5.7 billion USD in 2020 and 5.2 billion USD in 2021. This decline was partially offset by non-cash adjustments, most notably depreciation and amortization, which grew consistently from 951 million USD in 2017 to 1.29 billion USD in 2021. A significant impairment charge of 1.56 billion USD in 2020 further reflects the asset devaluation during the period of operational disruption.; Customer deposits exhibited extreme volatility, serving as a primary driver of operational cash. After consistent annual increases through 2019, a massive outflow of 1.64 billion USD occurred in 2020, followed by a nearly equivalent inflow of 1.42 billion USD in 2021, indicating a cycle of refund requests followed by a recovery in future bookings.
Investing Activity and Capital Expenditure: Investment activities remained consistently negative, driven by heavy capital expenditures in property and equipment. After a relatively low spend of 564 million USD in 2017, expenditures surged to 3.66 billion USD in 2018 and remained above 1.9 billion USD annually through 2021. The 2018 period was further marked by the acquisition of Silversea Cruises, which required a net cash outlay of 916 million USD.
Financing and Liquidity Management: The financing strategy shifted from debt repayment and shareholder returns to aggressive capital raising. From 2017 to 2019, the company focused on repaying debt and issuing dividends. However, in 2020, debt proceeds surged to 13.5 billion USD, complemented by 6.7 billion USD from commercial paper notes, to compensate for the collapse in operating cash. This trend continued into 2021 with 4.4 billion USD in new debt proceeds.; Equity financing became a critical tool in 2020 and 2021, with common stock issuances totaling approximately 3 billion USD across those two years. Concurrently, shareholder distributions were phased out, with dividends falling from 602 million USD in 2019 to zero by 2021, and the cessation of treasury stock purchases after 2019.

The overall cash position reflects these opposing forces. While the company ended 2019 with 243 million USD in cash, the massive influx of financing in 2020 drove the cash balance to 3.68 billion USD. By the end of 2021, this balance decreased to 2.7 billion USD, as the company utilized its liquidity reserves to fund ongoing operating losses and sustain capital investments despite the lack of organic cash generation.

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