Debt to Equity
since 2005
Calculation
Royal Caribbean Cruises Ltd., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Shareholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 4.15 | = | 21,090,340) | ÷ | 5,085,556) |
| Dec 31, 2020 | 2.21 | = | 19,329,043) | ÷ | 8,760,669) |
| Dec 31, 2019 | 0.91 | = | 11,034,876) | ÷ | 12,163,846) |
| Dec 31, 2018 | 0.97 | = | 10,777,699) | ÷ | 11,105,461) |
| Dec 31, 2017 | 0.70 | = | 7,539,451) | ÷ | 10,702,303) |
| Dec 31, 2016 | 1.03 | = | 9,387,436) | ÷ | 9,121,412) |
| Dec 31, 2015 | 1.07 | = | 8,667,055) | ÷ | 8,063,039) |
| Dec 31, 2014 | 1.02 | = | 8,443,948) | ÷ | 8,284,359) |
| Dec 31, 2013 | 0.92 | = | 8,074,804) | ÷ | 8,808,265) |
| Dec 31, 2012 | 1.02 | = | 8,489,947) | ÷ | 8,308,749) |
| Dec 31, 2011 | 1.01 | = | 8,495,853) | ÷ | 8,407,823) |
| Dec 31, 2010 | 1.15 | = | 9,150,116) | ÷ | 7,942,502) |
| Dec 31, 2009 | 1.12 | = | 8,419,770) | ÷ | 7,499,717) |
| Dec 31, 2008 | 1.03 | = | 7,011,403) | ÷ | 6,803,012) |
| Dec 31, 2007 | 0.84 | = | 5,698,272) | ÷ | 6,757,343) |
| Dec 31, 2006 | 0.89 | = | 5,413,744) | ÷ | 6,091,575) |
| Dec 31, 2005 | 0.75 | = | 4,154,775) | ÷ | 5,554,465) |
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 financial trajectory of the capital structure from 2005 to 2021 is characterized by a long period of relative stability followed by a sharp increase in leverage during the final two years of the period.
- Debt Accumulation Patterns
- Total debt exhibited a steady upward trend for the majority of the analyzed period, rising from approximately 4.15 billion US dollars in 2005 to 11.03 billion US dollars by 2018. A significant acceleration in borrowing occurred after 2019, with total debt surging to 19.33 billion US dollars in 2020 and reaching 21.09 billion US dollars by the end of 2021.
- Shareholders' Equity Trends
- Equity grew incrementally from 5.55 billion US dollars in 2005, peaking at 12.16 billion US dollars in 2019. This growth phase was followed by a severe contraction, where equity fell to 8.76 billion US dollars in 2020 and further declined to 5.09 billion US dollars in 2021, representing a substantial erosion of the equity base.
- Debt to Equity Ratio Analysis
- Between 2005 and 2019, the debt to equity ratio remained largely range-bound, fluctuating between 0.70 and 1.15. This suggests a consistent approach to balancing leverage against equity for fifteen years. However, the ratio experienced an exponential increase starting in 2020, jumping to 2.21 and culminating in 4.15 by 2021. This shift indicates a fundamental change in the solvency profile, where debt obligations grew to exceed equity by more than four times.
The convergence of rapidly increasing total debt and sharply declining shareholders' equity between 2020 and 2021 resulted in a dramatic escalation of financial leverage, marking a distinct departure from the historical capital management patterns observed since 2005.
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Comparison to Competitors
Royal Caribbean Cruises Ltd., debt to equity, 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 | 4.15 | 0.00 | 1.77 | 0.00 | 0.00 | — | — |
| Dec 31, 2020 | 2.21 | 0.63 | 2.46 | 0.00 | 0.08 | — | — |
| Dec 31, 2019 | 0.91 | — | 1.45 | 0.00 | — | — | — |
| Dec 31, 2018 | 0.97 | — | 0.98 | 0.00 | — | — | 8.07 |
| Dec 31, 2017 | 0.70 | — | 0.85 | 0.00 | — | — | 0.72 |
| Dec 31, 2016 | 1.03 | — | 0.73 | 0.00 | — | — | 0.61 |
| Dec 31, 2015 | 1.07 | — | 0.70 | 0.00 | — | 3.40 | 0.40 |
| Dec 31, 2014 | 1.02 | — | 0.45 | 0.00 | — | 1.17 | 0.39 |
| Dec 31, 2013 | 0.92 | — | 0.28 | 0.00 | — | 0.88 | 0.29 |
| Dec 31, 2012 | 1.02 | — | 0.37 | 0.00 | — | 0.89 | 0.11 |
| Dec 31, 2011 | 1.01 | — | 0.22 | 0.00 | — | 0.87 | 0.13 |
| Dec 31, 2010 | 1.15 | — | 0.26 | 0.00 | — | 0.79 | 0.15 |
| Dec 31, 2009 | 1.12 | — | 0.15 | 0.00 | — | 0.75 | 0.18 |
| Dec 31, 2008 | 1.03 | — | 0.54 | 0.00 | — | 0.76 | 0.51 |
| Dec 31, 2007 | 0.84 | — | 0.98 | 0.00 | — | 0.61 | 0.55 |
| Dec 31, 2006 | 0.89 | — | 1.63 | 0.00 | — | 0.55 | 0.32 |
| Dec 31, 2005 | 0.75 | — | 0.61 | 0.00 | — | 0.67 | 0.13 |
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., debt to equity, long-term trends, comparison to sector (consumer services)
| Royal Caribbean Cruises Ltd. | Consumer Services | |
|---|---|---|
| Dec 31, 2021 | 4.15 | 7.65 |
| Dec 31, 2020 | 2.21 | — |
| Dec 31, 2019 | 0.91 | — |
| Dec 31, 2018 | 0.97 | 9.57 |
| Dec 31, 2017 | 0.70 | 2.90 |
| Dec 31, 2016 | 1.03 | 2.46 |
| Dec 31, 2015 | 1.07 | 1.37 |
| Dec 31, 2014 | 1.02 | 0.73 |
| Dec 31, 2013 | 0.92 | 0.60 |
| Dec 31, 2012 | 1.02 | 0.61 |
| Dec 31, 2011 | 1.01 | 0.61 |
| Dec 31, 2010 | 1.15 | 0.60 |
| Dec 31, 2009 | 1.12 | 0.59 |
| Dec 31, 2008 | 1.03 | 0.69 |
| Dec 31, 2007 | 0.84 | 0.60 |
| Dec 31, 2006 | 0.89 | 0.52 |
| Dec 31, 2005 | 0.75 | 0.59 |
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., debt to equity, long-term trends, comparison to industry (consumer discretionary)
| Royal Caribbean Cruises Ltd. | Consumer Discretionary | |
|---|---|---|
| Dec 31, 2021 | 4.15 | 1.41 |
| Dec 31, 2020 | 2.21 | 2.17 |
| Dec 31, 2019 | 0.91 | 2.60 |
| Dec 31, 2018 | 0.97 | 2.59 |
| Dec 31, 2017 | 0.70 | 2.55 |
| Dec 31, 2016 | 1.03 | 2.21 |
| Dec 31, 2015 | 1.07 | 1.88 |
| Dec 31, 2014 | 1.02 | 1.60 |
| Dec 31, 2013 | 0.92 | 1.25 |
| Dec 31, 2012 | 1.02 | 1.19 |
| Dec 31, 2011 | 1.01 | 1.09 |
| Dec 31, 2010 | 1.15 | 1.26 |
| Dec 31, 2009 | 1.12 | 2.58 |
| Dec 31, 2008 | 1.03 | 4.06 |
| Dec 31, 2007 | 0.84 | 2.62 |
| Dec 31, 2006 | 0.89 | 2.96 |
| Dec 31, 2005 | 0.75 | 2.35 |
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).