Return on Equity (ROE)
since 2005
Calculation
Royal Caribbean Cruises Ltd., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss) attributable to Royal Caribbean Cruises Ltd.1 | ÷ | Shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | -103.44% | = | 100 | × | (5,260,499) | ÷ | 5,085,556) |
| Dec 31, 2020 | -66.18% | = | 100 | × | (5,797,462) | ÷ | 8,760,669) |
| Dec 31, 2019 | 15.45% | = | 100 | × | 1,878,887) | ÷ | 12,163,846) |
| Dec 31, 2018 | 16.31% | = | 100 | × | 1,811,042) | ÷ | 11,105,461) |
| Dec 31, 2017 | 15.18% | = | 100 | × | 1,625,133) | ÷ | 10,702,303) |
| Dec 31, 2016 | 14.07% | = | 100 | × | 1,283,388) | ÷ | 9,121,412) |
| Dec 31, 2015 | 8.26% | = | 100 | × | 665,783) | ÷ | 8,063,039) |
| Dec 31, 2014 | 9.22% | = | 100 | × | 764,146) | ÷ | 8,284,359) |
| Dec 31, 2013 | 5.38% | = | 100 | × | 473,692) | ÷ | 8,808,265) |
| Dec 31, 2012 | 0.22% | = | 100 | × | 18,287) | ÷ | 8,308,749) |
| Dec 31, 2011 | 7.22% | = | 100 | × | 607,421) | ÷ | 8,407,823) |
| Dec 31, 2010 | 6.89% | = | 100 | × | 547,467) | ÷ | 7,942,502) |
| Dec 31, 2009 | 2.17% | = | 100 | × | 162,421) | ÷ | 7,499,717) |
| Dec 31, 2008 | 8.43% | = | 100 | × | 573,722) | ÷ | 6,803,012) |
| Dec 31, 2007 | 8.93% | = | 100 | × | 603,405) | ÷ | 6,757,343) |
| Dec 31, 2006 | 10.41% | = | 100 | × | 633,922) | ÷ | 6,091,575) |
| Dec 31, 2005 | 12.89% | = | 100 | × | 715,956) | ÷ | 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 analysis of the financial performance from 2005 to 2021 reveals three distinct phases: a period of moderate volatility and decline, a phase of significant growth and peak efficiency, and a final period of severe financial contraction.
- Profitability and ROE Trends (2005–2015)
- Between 2005 and 2009, a consistent downward trend in Return on Equity (ROE) is observed, falling from 12.89% to 2.17%. This decline was driven by a reduction in net income, which dropped from US$ 715.9 million to US$ 162.4 million, while shareholders' equity concurrently increased. A period of stabilization followed between 2010 and 2015, where ROE generally fluctuated between 5.38% and 9.22%, despite a sharp anomaly in 2012 where ROE dropped to 0.22% due to a significant decrease in net income to US$ 18.3 million.
- Peak Performance Phase (2016–2019)
- A period of robust financial expansion is evident from 2016 to 2019. During this interval, net income grew substantially, peaking at US$ 1.88 billion in 2019. This growth translated into the highest ROE levels of the observed period, reaching a maximum of 16.31% in 2018. Shareholders' equity also expanded steadily, reaching a peak of US$ 12.16 billion in 2019, indicating a period of high capital efficiency and strong profitability.
- Financial Collapse (2020–2021)
- The data shows a catastrophic reversal in financial health starting in 2020. Net income shifted to massive losses, recording negative US$ 5.80 billion in 2020 and negative US$ 5.26 billion in 2021. This resulted in an extreme collapse of ROE, which plummeted to -66.18% in 2020 and further deteriorated to -103.44% by 2021. This collapse is mirrored by a sharp contraction in shareholders' equity, which fell from US$ 12.16 billion in 2019 to US$ 5.09 billion in 2021, reflecting a severe erosion of the company's capital base.
In summary, the longitudinal data demonstrates that the company achieved a trajectory of increasing efficiency and scale up until 2019, which was subsequently erased by an unprecedented decline in profitability and equity value in the final two years of the reporting period.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
Royal Caribbean Cruises Ltd., ROE, 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 | -103.44% | -7.37% | 18.86% | 28.42% | -10.03% | — | — |
| Dec 31, 2020 | -66.18% | -158.00% | 1.21% | 17.61% | -9.81% | — | — |
| Dec 31, 2019 | 15.45% | — | 82.00% | 20.81% | — | — | — |
| Dec 31, 2018 | 16.31% | — | 45.51% | 12.25% | — | — | 386.34% |
| Dec 31, 2017 | 15.18% | — | 20.79% | 12.92% | — | — | 52.93% |
| Dec 31, 2016 | 14.07% | — | 21.74% | 1.64% | — | — | 47.89% |
| Dec 31, 2015 | 8.26% | — | 29.01% | 22.35% | — | 63.90% | 47.39% |
| Dec 31, 2014 | 9.22% | — | 28.27% | 22.13% | — | 37.02% | 39.23% |
| Dec 31, 2013 | 5.38% | — | 27.39% | 21.29% | — | 34.89% | 0.19% |
| Dec 31, 2012 | 0.22% | — | 36.43% | 22.31% | — | 35.73% | 27.09% |
| Dec 31, 2011 | 7.22% | — | 41.04% | 20.58% | — | 38.24% | 28.41% |
| Dec 31, 2010 | 6.89% | — | 29.09% | 22.07% | — | 33.80% | 25.73% |
| Dec 31, 2009 | 2.17% | — | 37.04% | 18.03% | — | 32.43% | 12.83% |
| Dec 31, 2008 | 8.43% | — | 26.49% | 12.56% | — | 32.23% | 12.67% |
| Dec 31, 2007 | 8.93% | — | 27.12% | 12.55% | — | 15.67% | 29.45% |
| Dec 31, 2006 | 10.41% | — | 21.36% | 8.74% | — | 22.93% | 25.32% |
| Dec 31, 2005 | 12.89% | — | 52.22% | 12.19% | — | 17.18% | 23.65% |
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., ROE, long-term trends, comparison to sector (consumer services)
| Royal Caribbean Cruises Ltd. | Consumer Services | |
|---|---|---|
| Dec 31, 2021 | -103.44% | 159.36% |
| Dec 31, 2020 | -66.18% | — |
| Dec 31, 2019 | 15.45% | — |
| Dec 31, 2018 | 16.31% | 284.52% |
| Dec 31, 2017 | 15.18% | 71.55% |
| Dec 31, 2016 | 14.07% | 64.84% |
| Dec 31, 2015 | 8.26% | 43.28% |
| Dec 31, 2014 | 9.22% | 33.77% |
| Dec 31, 2013 | 5.38% | 27.00% |
| Dec 31, 2012 | 0.22% | 33.45% |
| Dec 31, 2011 | 7.22% | 35.81% |
| Dec 31, 2010 | 6.89% | 31.52% |
| Dec 31, 2009 | 2.17% | 29.09% |
| Dec 31, 2008 | 8.43% | 28.45% |
| Dec 31, 2007 | 8.93% | 17.62% |
| Dec 31, 2006 | 10.41% | 22.82% |
| Dec 31, 2005 | 12.89% | 18.57% |
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., ROE, long-term trends, comparison to industry (consumer discretionary)
| Royal Caribbean Cruises Ltd. | Consumer Discretionary | |
|---|---|---|
| Dec 31, 2021 | -103.44% | 33.71% |
| Dec 31, 2020 | -66.18% | 24.49% |
| Dec 31, 2019 | 15.45% | 34.62% |
| Dec 31, 2018 | 16.31% | 34.33% |
| Dec 31, 2017 | 15.18% | 22.85% |
| Dec 31, 2016 | 14.07% | 28.74% |
| Dec 31, 2015 | 8.26% | 29.03% |
| Dec 31, 2014 | 9.22% | 20.60% |
| Dec 31, 2013 | 5.38% | 20.34% |
| Dec 31, 2012 | 0.22% | 21.97% |
| Dec 31, 2011 | 7.22% | 34.92% |
| Dec 31, 2010 | 6.89% | 24.34% |
| Dec 31, 2009 | 2.17% | 25.32% |
| Dec 31, 2008 | 8.43% | 1.64% |
| Dec 31, 2007 | 8.93% | 16.06% |
| Dec 31, 2006 | 10.41% | 3.84% |
| Dec 31, 2005 | 12.89% | 19.92% |
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).