Current Ratio
since 2005
Calculation
Royal Caribbean Cruises Ltd., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 0.49 | = | 3,600,271) | ÷ | 7,285,683) |
| Dec 31, 2020 | 0.95 | = | 4,311,747) | ÷ | 4,537,121) |
| Dec 31, 2019 | 0.15 | = | 1,162,628) | ÷ | 7,952,896) |
| Dec 31, 2018 | 0.17 | = | 1,242,044) | ÷ | 7,112,165) |
| Dec 31, 2017 | 0.18 | = | 843,028) | ÷ | 4,790,264) |
| Dec 31, 2016 | 0.17 | = | 748,305) | ÷ | 4,441,601) |
| Dec 31, 2015 | 0.19 | = | 837,022) | ÷ | 4,292,827) |
| Dec 31, 2014 | 0.21 | = | 801,083) | ÷ | 3,849,247) |
| Dec 31, 2013 | 0.22 | = | 956,374) | ÷ | 4,267,010) |
| Dec 31, 2012 | 0.22 | = | 888,060) | ÷ | 4,066,151) |
| Dec 31, 2011 | 0.32 | = | 969,288) | ÷ | 3,067,642) |
| Dec 31, 2010 | 0.29 | = | 1,015,071) | ÷ | 3,444,498) |
| Dec 31, 2009 | 0.37 | = | 1,026,391) | ÷ | 2,749,030) |
| Dec 31, 2008 | 0.37 | = | 977,337) | ÷ | 2,674,225) |
| Dec 31, 2007 | 0.42 | = | 992,791) | ÷ | 2,339,295) |
| Dec 31, 2006 | 0.27 | = | 501,904) | ÷ | 1,872,368) |
| Dec 31, 2005 | 0.19 | = | 377,010) | ÷ | 1,988,782) |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The analysis of the provided financial data reveals notable patterns and fluctuations in the liquidity position of the subject entity over the period from 2005 to 2021.
- Current Assets
- Current assets generally demonstrated an increasing trend from 2005 through 2019, with an initial value of approximately 377 million US$ in 2005 rising steadily to over 1.16 billion US$ by the end of 2019. This upward trend suggests strengthening short-term asset holdings, peaking significantly in 2020 at over 4.3 billion US$, which represents an unusually large increase likely influenced by extraordinary circumstances. In 2021, current assets declined to about 3.6 billion US$ but remained markedly higher than previous years, indicating maintained elevated asset levels.
- Current Liabilities
- Current liabilities followed an upward trajectory over the examined period as well, starting at approximately 1.99 billion US$ in 2005 and reaching levels above 7.95 billion US$ by 2019. The liabilities notably increased sharply in the years 2018 and 2019, followed by a sizeable spike in 2020 and 2021, aligning with the pattern seen in current assets; liabilities stood at approximately 4.54 billion US$ in 2020 and increased again to 7.29 billion US$ in 2021. This strong growth in liabilities denotes increasing short-term financial obligations.
- Current Ratio
- The current ratio, calculated as current assets divided by current liabilities, exhibited persistent weakness throughout most of the period. Starting at a very low ratio of 0.19 in 2005, it slightly improved to a peak of 0.42 in 2007 but then generally declined, reaching its lowest values around 0.15 to 0.18 from 2014 through 2019. This indicates the entity consistently maintained a liquidity position where current liabilities significantly exceeded current assets, raising concerns about short-term solvency.
- In 2020, there was a pronounced improvement in the current ratio to 0.95, largely driven by the surge in current assets, which nearly quadrupled, while liabilities did not increase proportionally. This anomaly could reflect temporary financial management actions or external financial support. However, in 2021, the current ratio decreased to 0.49, revealing a partial reversal of the prior year’s improvement and suggesting continuing liquidity challenges compared to historical standards.
Overall, the data indicates that the entity has historically operated with a fragile liquidity structure, consistently facing current liabilities exceeding current assets by a large margin. The significant variations observed in 2020 and 2021 likely stem from extraordinary financial events impacting both assets and liabilities. The partial correction in 2021's ratio highlights ongoing efforts or circumstances affecting short-term financial stability.
Comparison to Competitors
Royal Caribbean Cruises Ltd., current ratio, long-term trends, comparison to competitors
| Royal Caribbean Cruises Ltd. | Airbnb Inc. | Booking Holdings Inc. | Chipotle Mexican Grill Inc. | DoorDash, Inc. | McDonald’s Corp. | Starbucks Corp. | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 0.49 | 1.95 | 2.10 | 1.58 | 2.59 | 1.78 | 1.20 |
| Dec 31, 2020 | 0.95 | 1.73 | 3.56 | 1.73 | 3.94 | 1.01 | 1.06 |
| Dec 31, 2019 | 0.15 | — | 1.83 | 1.61 | — | 0.98 | 0.92 |
| Dec 31, 2018 | 0.17 | — | 2.36 | 1.81 | — | 1.36 | 2.20 |
| Dec 31, 2017 | 0.18 | — | 2.58 | 1.94 | — | 1.84 | 1.25 |
| Dec 31, 2016 | 0.17 | — | 1.89 | 1.85 | — | 1.40 | 1.05 |
| Dec 31, 2015 | 0.19 | — | 2.47 | 2.91 | — | 3.27 | 1.19 |
| Dec 31, 2014 | 0.21 | — | 3.82 | 3.58 | — | 1.52 | 1.37 |
| Dec 31, 2013 | 0.22 | — | 5.41 | 3.34 | — | 1.59 | 1.02 |
| Dec 31, 2012 | 0.22 | — | 3.89 | 2.93 | — | 1.45 | 1.90 |
| Dec 31, 2011 | 0.32 | — | 2.77 | 3.18 | — | 1.25 | 1.83 |
| Dec 31, 2010 | 0.29 | — | 4.15 | 3.30 | — | 1.49 | 1.55 |
| Dec 31, 2009 | 0.37 | — | 2.50 | 2.91 | — | 1.14 | 1.29 |
| Dec 31, 2008 | 0.37 | — | 1.14 | 2.75 | — | 1.39 | 0.80 |
| Dec 31, 2007 | 0.42 | — | 0.88 | 2.75 | — | 0.80 | 0.79 |
| Dec 31, 2006 | 0.27 | — | 5.00 | 2.92 | — | 1.21 | 0.79 |
| Dec 31, 2005 | 0.19 | — | 3.15 | 0.42 | — | 1.45 | 0.99 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Consumer Services)
Royal Caribbean Cruises Ltd., current ratio, long-term trends, comparison to sector (consumer services)
| Royal Caribbean Cruises Ltd. | Consumer Services | |
|---|---|---|
| Dec 31, 2021 | 0.49 | 1.77 |
| Dec 31, 2020 | 0.95 | 1.73 |
| Dec 31, 2019 | 0.15 | 1.27 |
| Dec 31, 2018 | 0.17 | 2.04 |
| Dec 31, 2017 | 0.18 | 1.85 |
| Dec 31, 2016 | 0.17 | 1.39 |
| Dec 31, 2015 | 0.19 | 2.21 |
| Dec 31, 2014 | 0.21 | 1.96 |
| Dec 31, 2013 | 0.22 | 1.84 |
| Dec 31, 2012 | 0.22 | 2.11 |
| Dec 31, 2011 | 0.32 | 1.72 |
| Dec 31, 2010 | 0.29 | 1.79 |
| Dec 31, 2009 | 0.37 | 1.33 |
| Dec 31, 2008 | 0.37 | 1.14 |
| Dec 31, 2007 | 0.42 | 0.82 |
| Dec 31, 2006 | 0.27 | 1.14 |
| Dec 31, 2005 | 0.19 | 1.36 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Consumer Discretionary)
Royal Caribbean Cruises Ltd., current ratio, long-term trends, comparison to industry (consumer discretionary)
| Royal Caribbean Cruises Ltd. | Consumer Discretionary | |
|---|---|---|
| Dec 31, 2021 | 0.49 | 1.25 |
| Dec 31, 2020 | 0.95 | 1.19 |
| Dec 31, 2019 | 0.15 | 1.10 |
| Dec 31, 2018 | 0.17 | 1.15 |
| Dec 31, 2017 | 0.18 | 1.15 |
| Dec 31, 2016 | 0.17 | 1.12 |
| Dec 31, 2015 | 0.19 | 1.25 |
| Dec 31, 2014 | 0.21 | 1.11 |
| Dec 31, 2013 | 0.22 | 1.15 |
| Dec 31, 2012 | 0.22 | 1.14 |
| Dec 31, 2011 | 0.32 | 1.31 |
| Dec 31, 2010 | 0.29 | 1.24 |
| Dec 31, 2009 | 0.37 | 1.25 |
| Dec 31, 2008 | 0.37 | 0.96 |
| Dec 31, 2007 | 0.42 | 1.21 |
| Dec 31, 2006 | 0.27 | 1.15 |
| Dec 31, 2005 | 0.19 | 1.10 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).