Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Royal Caribbean Cruises Ltd., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Royal Caribbean Cruises Ltd. debt to equity ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Royal Caribbean Cruises Ltd. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Royal Caribbean Cruises Ltd. debt to capital ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Royal Caribbean Cruises Ltd. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Royal Caribbean Cruises Ltd. debt to assets ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Royal Caribbean Cruises Ltd. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Royal Caribbean Cruises Ltd. financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Royal Caribbean Cruises Ltd. interest coverage ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Royal Caribbean Cruises Ltd. fixed charge coverage ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Debt to Equity
Royal Caribbean Cruises Ltd., debt to equity calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current portion of long-term debt | 2,243,131) | 961,768) | 1,186,586) | 1,646,841) | 1,188,514) | |
| Commercial paper | —) | 409,319) | 1,434,180) | 775,488) | —) | |
| Long-term debt, excluding current portion | 18,847,209) | 17,957,956) | 8,414,110) | 8,355,370) | 6,350,937) | |
| Total debt | 21,090,340) | 19,329,043) | 11,034,876) | 10,777,699) | 7,539,451) | |
| Shareholders’ equity | 5,085,556) | 8,760,669) | 12,163,846) | 11,105,461) | 10,702,303) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 4.15 | 2.21 | 0.91 | 0.97 | 0.70 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Airbnb Inc. | 0.42 | 0.63 | — | — | — | |
| Booking Holdings Inc. | 1.77 | 2.46 | 1.45 | — | — | |
| Carnival Corp. & plc | 2.74 | 1.31 | 0.45 | 0.42 | — | |
| Chipotle Mexican Grill Inc. | 0.00 | 0.00 | 0.00 | — | — | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | 8.07 | — | |
| Debt to Equity, Sector | ||||||
| Consumer Services | 6.23 | 6.39 | 3.53 | — | — | |
| Debt to Equity, Industry | ||||||
| Consumer Discretionary | 1.57 | 2.27 | 2.45 | — | — | |
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).
1 2021 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 21,090,340 ÷ 5,085,556 = 4.15
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Royal Caribbean Cruises Ltd. debt to equity ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Equity (including Operating Lease Liability)
Royal Caribbean Cruises Ltd., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current portion of long-term debt | 2,243,131) | 961,768) | 1,186,586) | 1,646,841) | 1,188,514) | |
| Commercial paper | —) | 409,319) | 1,434,180) | 775,488) | —) | |
| Long-term debt, excluding current portion | 18,847,209) | 17,957,956) | 8,414,110) | 8,355,370) | 6,350,937) | |
| Total debt | 21,090,340) | 19,329,043) | 11,034,876) | 10,777,699) | 7,539,451) | |
| Current portion of operating lease liabilities | 68,922) | 102,677) | 96,976) | —) | —) | |
| Long-term operating lease liabilities | 534,726) | 563,876) | 601,641) | —) | —) | |
| Total debt (including operating lease liability) | 21,693,988) | 19,995,596) | 11,733,493) | 10,777,699) | 7,539,451) | |
| Shareholders’ equity | 5,085,556) | 8,760,669) | 12,163,846) | 11,105,461) | 10,702,303) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 4.27 | 2.28 | 0.96 | 0.97 | 0.70 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Airbnb Inc. | 0.51 | 0.80 | — | — | — | |
| Booking Holdings Inc. | 1.85 | 2.56 | 1.56 | — | — | |
| Carnival Corp. & plc | 2.85 | 1.38 | 0.45 | 0.42 | — | |
| Chipotle Mexican Grill Inc. | 1.53 | 1.56 | 1.69 | — | — | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | 8.07 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Consumer Services | 8.07 | 8.32 | 4.44 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | 1.93 | 2.70 | 2.71 | — | — | |
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).
1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 21,693,988 ÷ 5,085,556 = 4.27
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Royal Caribbean Cruises Ltd. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Capital
Royal Caribbean Cruises Ltd., debt to capital calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current portion of long-term debt | 2,243,131) | 961,768) | 1,186,586) | 1,646,841) | 1,188,514) | |
| Commercial paper | —) | 409,319) | 1,434,180) | 775,488) | —) | |
| Long-term debt, excluding current portion | 18,847,209) | 17,957,956) | 8,414,110) | 8,355,370) | 6,350,937) | |
| Total debt | 21,090,340) | 19,329,043) | 11,034,876) | 10,777,699) | 7,539,451) | |
| Shareholders’ equity | 5,085,556) | 8,760,669) | 12,163,846) | 11,105,461) | 10,702,303) | |
| Total capital | 26,175,896) | 28,089,712) | 23,198,722) | 21,883,160) | 18,241,754) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.81 | 0.69 | 0.48 | 0.49 | 0.41 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Airbnb Inc. | 0.29 | 0.39 | — | — | — | |
| Booking Holdings Inc. | 0.64 | 0.71 | 0.59 | — | — | |
| Carnival Corp. & plc | 0.73 | 0.57 | 0.31 | 0.30 | — | |
| Chipotle Mexican Grill Inc. | 0.00 | 0.00 | 0.00 | — | — | |
| McDonald’s Corp. | 1.15 | 1.26 | 1.32 | — | — | |
| Starbucks Corp. | 1.57 | 1.96 | 2.26 | 0.89 | — | |
| Debt to Capital, Sector | ||||||
| Consumer Services | 0.86 | 0.86 | 0.78 | — | — | |
| Debt to Capital, Industry | ||||||
| Consumer Discretionary | 0.61 | 0.69 | 0.71 | — | — | |
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).
1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 21,090,340 ÷ 26,175,896 = 0.81
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Royal Caribbean Cruises Ltd. debt to capital ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Capital (including Operating Lease Liability)
Royal Caribbean Cruises Ltd., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current portion of long-term debt | 2,243,131) | 961,768) | 1,186,586) | 1,646,841) | 1,188,514) | |
| Commercial paper | —) | 409,319) | 1,434,180) | 775,488) | —) | |
| Long-term debt, excluding current portion | 18,847,209) | 17,957,956) | 8,414,110) | 8,355,370) | 6,350,937) | |
| Total debt | 21,090,340) | 19,329,043) | 11,034,876) | 10,777,699) | 7,539,451) | |
| Current portion of operating lease liabilities | 68,922) | 102,677) | 96,976) | —) | —) | |
| Long-term operating lease liabilities | 534,726) | 563,876) | 601,641) | —) | —) | |
| Total debt (including operating lease liability) | 21,693,988) | 19,995,596) | 11,733,493) | 10,777,699) | 7,539,451) | |
| Shareholders’ equity | 5,085,556) | 8,760,669) | 12,163,846) | 11,105,461) | 10,702,303) | |
| Total capital (including operating lease liability) | 26,779,544) | 28,756,265) | 23,897,339) | 21,883,160) | 18,241,754) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.81 | 0.70 | 0.49 | 0.49 | 0.41 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Airbnb Inc. | 0.34 | 0.44 | — | — | — | |
| Booking Holdings Inc. | 0.65 | 0.72 | 0.61 | — | — | |
| Carnival Corp. & plc | 0.74 | 0.58 | 0.31 | 0.30 | — | |
| Chipotle Mexican Grill Inc. | 0.61 | 0.61 | 0.63 | — | — | |
| McDonald’s Corp. | 1.10 | 1.18 | 1.21 | — | — | |
| Starbucks Corp. | 1.29 | 1.46 | 2.26 | 0.89 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Consumer Services | 0.89 | 0.89 | 0.82 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | 0.66 | 0.73 | 0.73 | — | — | |
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).
1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 21,693,988 ÷ 26,779,544 = 0.81
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Royal Caribbean Cruises Ltd. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Assets
Royal Caribbean Cruises Ltd., debt to assets calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current portion of long-term debt | 2,243,131) | 961,768) | 1,186,586) | 1,646,841) | 1,188,514) | |
| Commercial paper | —) | 409,319) | 1,434,180) | 775,488) | —) | |
| Long-term debt, excluding current portion | 18,847,209) | 17,957,956) | 8,414,110) | 8,355,370) | 6,350,937) | |
| Total debt | 21,090,340) | 19,329,043) | 11,034,876) | 10,777,699) | 7,539,451) | |
| Total assets | 32,258,355) | 32,465,187) | 30,320,284) | 27,698,270) | 22,296,317) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.65 | 0.60 | 0.36 | 0.39 | 0.34 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Airbnb Inc. | 0.14 | 0.17 | — | — | — | |
| Booking Holdings Inc. | 0.46 | 0.55 | 0.40 | — | — | |
| Carnival Corp. & plc | 0.62 | 0.50 | 0.26 | 0.24 | — | |
| Chipotle Mexican Grill Inc. | 0.00 | 0.00 | 0.00 | — | — | |
| McDonald’s Corp. | 0.66 | 0.71 | 0.72 | — | — | |
| Starbucks Corp. | 0.47 | 0.54 | 0.58 | 0.39 | — | |
| Debt to Assets, Sector | ||||||
| Consumer Services | 0.53 | 0.54 | 0.47 | — | — | |
| Debt to Assets, Industry | ||||||
| Consumer Discretionary | 0.37 | 0.42 | 0.44 | — | — | |
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).
1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 21,090,340 ÷ 32,258,355 = 0.65
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Royal Caribbean Cruises Ltd. debt to assets ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Debt to Assets (including Operating Lease Liability)
Royal Caribbean Cruises Ltd., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current portion of long-term debt | 2,243,131) | 961,768) | 1,186,586) | 1,646,841) | 1,188,514) | |
| Commercial paper | —) | 409,319) | 1,434,180) | 775,488) | —) | |
| Long-term debt, excluding current portion | 18,847,209) | 17,957,956) | 8,414,110) | 8,355,370) | 6,350,937) | |
| Total debt | 21,090,340) | 19,329,043) | 11,034,876) | 10,777,699) | 7,539,451) | |
| Current portion of operating lease liabilities | 68,922) | 102,677) | 96,976) | —) | —) | |
| Long-term operating lease liabilities | 534,726) | 563,876) | 601,641) | —) | —) | |
| Total debt (including operating lease liability) | 21,693,988) | 19,995,596) | 11,733,493) | 10,777,699) | 7,539,451) | |
| Total assets | 32,258,355) | 32,465,187) | 30,320,284) | 27,698,270) | 22,296,317) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.67 | 0.62 | 0.39 | 0.39 | 0.34 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Airbnb Inc. | 0.18 | 0.22 | — | — | — | |
| Booking Holdings Inc. | 0.48 | 0.57 | 0.43 | — | — | |
| Carnival Corp. & plc | 0.65 | 0.53 | 0.26 | 0.24 | — | |
| Chipotle Mexican Grill Inc. | 0.53 | 0.53 | 0.56 | — | — | |
| McDonald’s Corp. | 0.92 | 0.98 | 1.00 | — | — | |
| Starbucks Corp. | 0.75 | 0.84 | 0.58 | 0.39 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Consumer Services | 0.68 | 0.71 | 0.60 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Consumer Discretionary | 0.45 | 0.50 | 0.49 | — | — | |
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).
1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 21,693,988 ÷ 32,258,355 = 0.67
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Royal Caribbean Cruises Ltd. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021. |
Financial Leverage
Royal Caribbean Cruises Ltd., financial leverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 32,258,355) | 32,465,187) | 30,320,284) | 27,698,270) | 22,296,317) | |
| Shareholders’ equity | 5,085,556) | 8,760,669) | 12,163,846) | 11,105,461) | 10,702,303) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 6.34 | 3.71 | 2.49 | 2.49 | 2.08 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Airbnb Inc. | 2.87 | 3.62 | — | — | — | |
| Booking Holdings Inc. | 3.83 | 4.47 | 3.61 | — | — | |
| Carnival Corp. & plc | 4.39 | 2.61 | 1.78 | 1.73 | — | |
| Chipotle Mexican Grill Inc. | 2.90 | 2.96 | 3.03 | — | — | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | 20.66 | — | |
| Financial Leverage, Sector | ||||||
| Consumer Services | 11.80 | 11.80 | 7.46 | — | — | |
| Financial Leverage, Industry | ||||||
| Consumer Discretionary | 4.27 | 5.43 | 5.59 | — | — | |
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).
1 2021 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 32,258,355 ÷ 5,085,556 = 6.34
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Royal Caribbean Cruises Ltd. financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021. |
Interest Coverage
Royal Caribbean Cruises Ltd., interest coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income (loss) attributable to Royal Caribbean Cruises Ltd. | (5,260,499) | (5,797,462) | 1,878,887) | 1,811,042) | 1,625,133) | |
| Add: Net income attributable to noncontrolling interest | —) | 22,332) | 28,713) | 4,750) | —) | |
| Add: Income tax expense | (45,200) | (15,000) | 32,600) | 20,900) | 18,300) | |
| Add: Interest expense, net of interest capitalized | 1,291,753) | 844,238) | 408,513) | 333,672) | 299,982) | |
| Earnings before interest and tax (EBIT) | (4,013,946) | (4,945,892) | 2,348,713) | 2,170,364) | 1,943,415) | |
| Solvency Ratio | ||||||
| Interest coverage1 | -3.11 | -5.86 | 5.75 | 6.50 | 6.48 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Airbnb Inc. | 0.31 | -26.27 | — | — | — | |
| Booking Holdings Inc. | 5.39 | 2.59 | 23.40 | — | — | |
| Carnival Corp. & plc | -4.95 | -10.46 | 15.86 | 17.53 | — | |
| Chipotle Mexican Grill Inc. | — | — | — | — | — | |
| McDonald’s Corp. | 8.70 | 6.04 | 8.15 | — | — | |
| Starbucks Corp. | 12.40 | 3.66 | 14.49 | 34.94 | — | |
| Interest Coverage, Sector | ||||||
| Consumer Services | 2.72 | -1.20 | 12.41 | — | — | |
| Interest Coverage, Industry | ||||||
| Consumer Discretionary | 10.79 | 6.23 | 9.81 | — | — | |
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).
1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= -4,013,946 ÷ 1,291,753 = -3.11
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Royal Caribbean Cruises Ltd. interest coverage ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Fixed Charge Coverage
Royal Caribbean Cruises Ltd., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income (loss) attributable to Royal Caribbean Cruises Ltd. | (5,260,499) | (5,797,462) | 1,878,887) | 1,811,042) | 1,625,133) | |
| Add: Net income attributable to noncontrolling interest | —) | 22,332) | 28,713) | 4,750) | —) | |
| Add: Income tax expense | (45,200) | (15,000) | 32,600) | 20,900) | 18,300) | |
| Add: Interest expense, net of interest capitalized | 1,291,753) | 844,238) | 408,513) | 333,672) | 299,982) | |
| Earnings before interest and tax (EBIT) | (4,013,946) | (4,945,892) | 2,348,713) | 2,170,364) | 1,943,415) | |
| Add: Operating lease costs | 60,148) | 91,275) | 122,931) | 32,200) | 29,300) | |
| Earnings before fixed charges and tax | (3,953,798) | (4,854,617) | 2,471,644) | 2,202,564) | 1,972,715) | |
| Interest expense, net of interest capitalized | 1,291,753) | 844,238) | 408,513) | 333,672) | 299,982) | |
| Operating lease costs | 60,148) | 91,275) | 122,931) | 32,200) | 29,300) | |
| Fixed charges | 1,351,901) | 935,513) | 531,444) | 365,872) | 329,282) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | -2.92 | -5.19 | 4.65 | 6.02 | 5.99 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Airbnb Inc. | 0.42 | -16.81 | — | — | — | |
| Booking Holdings Inc. | 3.82 | 2.03 | 14.27 | — | — | |
| Carnival Corp. & plc | -4.28 | -8.34 | 15.86 | 17.53 | — | |
| Chipotle Mexican Grill Inc. | 3.23 | 1.88 | 2.49 | — | — | |
| McDonald’s Corp. | 4.32 | 3.28 | 3.94 | — | — | |
| Starbucks Corp. | 3.61 | 1.58 | 3.52 | 4.62 | — | |
| Fixed Charge Coverage, Sector | ||||||
| Consumer Services | 1.87 | 0.03 | 5.02 | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Consumer Discretionary | 5.00 | 3.18 | 4.31 | — | — | |
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).
1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= -3,953,798 ÷ 1,351,901 = -2.92
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Royal Caribbean Cruises Ltd. fixed charge coverage ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |