Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Royal Caribbean Cruises Ltd., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio maintained relative stability from the first quarter of 2018 through the end of 2019, with values generally around 0.40 to 0.43. This indicates consistent efficiency in utilizing fixed assets to generate revenue during this period. However, starting in the first quarter of 2020, there was a marked decline in this ratio, reaching a low of 0.01 by the first quarter of 2021. This sharp contraction suggests a significant reduction in asset utilization efficiency, likely driven by reduced operational activity. From mid-2021 onwards, a gradual recovery is apparent, with the ratio improving to 0.17 by mid-2022, indicating a partial rebound in fixed asset productivity.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- When incorporating operating lease assets, the net fixed asset turnover follows a similar pattern to the basic net fixed asset turnover. The ratio remains fairly steady around 0.40 to 0.42 until the end of 2019, before experiencing a notable decline throughout 2020 reaching a low near 0.01 in early 2021. It then shows a modest recovery through 2021 and into mid-2022, improving to 0.17. This parallel trend indicates that including right-of-use assets does not materially alter the overall asset turnover dynamics, reflecting consistent changes across asset categories.
- Total Asset Turnover
- The total asset turnover ratio exhibited modest fluctuations before 2020, hovering between 0.34 and 0.37, indicating a stable level of overall asset efficiency in revenue generation. A significant drop is observed in 2020, descending sharply to 0.07 in the final quarter. This decline corresponds with the operational disruptions previously noted. Recovery from this low point began in 2021, albeit gradually, with the ratio rising to 0.14 by mid-2022. The overall trend implies a disruption in asset utilization during the downturn followed by incremental improvement.
- Equity Turnover
- The equity turnover ratio displayed relatively stable values around 0.83 to 0.90 from 2018 through 2019. A notable increase to 1.03 occurred in the first quarter of 2020, possibly reflecting changes in equity or revenue dynamics at the onset of operational disruptions. Subsequently, a pronounced decline ensued throughout 2020, bottoming at 0.01 in the second quarter of 2021, signaling a sharp decrease in revenue generation relative to equity. Beginning mid-2021, the ratio began a strong recovery, demonstrating considerable improvement to reach 1.38 by mid-2022, surpassing prior peak levels. This pattern may reflect both recovery in operational performance and changes in equity structure.
Net Fixed Asset Turnover
Royal Caribbean Cruises Ltd., net fixed asset turnover calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Revenues | 2,184,242) | 1,059,231) | 982,247) | 456,958) | 50,914) | 42,014) | 34,138) | (33,688) | 175,605) | 2,032,750) | 2,517,413) | 3,186,850) | 2,806,631) | 2,439,767) | 2,332,301) | 2,796,187) | 2,337,605) | 2,027,756) | ||||||
| Property and equipment, net | 27,556,323) | 26,940,867) | 25,907,949) | 25,699,712) | 25,872,907) | 25,794,798) | 25,246,595) | 25,362,549) | 25,647,715) | 25,857,215) | 25,466,808) | 25,005,404) | 24,855,174) | 23,641,251) | 23,466,163) | 22,599,589) | 21,429,719) | 21,207,786) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Net fixed asset turnover1 | 0.17 | 0.09 | 0.06 | 0.02 | 0.00 | 0.01 | 0.09 | 0.19 | 0.31 | 0.41 | 0.43 | 0.43 | 0.42 | 0.42 | 0.40 | 0.41 | 0.42 | 0.41 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||
| Airbnb Inc. | 62.54 | 46.34 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Booking Holdings Inc. | 17.07 | 14.82 | 13.33 | 12.09 | 9.60 | 7.70 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Chipotle Mexican Grill Inc. | 4.49 | 4.40 | 4.27 | 4.18 | 4.11 | 3.91 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| DoorDash, Inc. | 10.66 | 11.58 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| McDonald’s Corp. | 1.01 | 0.97 | 0.94 | 0.92 | 0.88 | 0.80 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Starbucks Corp. | 4.85 | 4.75 | 4.56 | 4.41 | 3.89 | 3.75 | 3.77 | 3.82 | 4.17 | 4.22 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2022 Calculation
Net fixed asset turnover
= (RevenuesQ2 2022
+ RevenuesQ1 2022
+ RevenuesQ4 2021
+ RevenuesQ3 2021)
÷ Property and equipment, net
= (2,184,242 + 1,059,231 + 982,247 + 456,958)
÷ 27,556,323 = 0.17
2 Click competitor name to see calculations.
The financial data indicates several noteworthy trends over the analyzed periods. Revenues exhibit a generally increasing pattern from early 2018 through the end of 2019, peaking in the third quarter of 2019. However, starting from the first quarter of 2020, revenues experience a sharp decline, reaching negative levels in the third quarter of 2020, which is an unusual occurrence indicative of extraordinary circumstances affecting business operations during this period. This decline is gradually followed by a recovery from late 2020 through mid-2022, with revenues returning to positive figures and showing substantial improvement by the second quarter of 2022.
The net value of property and equipment steadily increases over the full timeframe, reflecting ongoing investment in physical assets. This upward trend suggests continued capital expenditures or asset valuations increasing regardless of fluctuating revenues, with the book value of fixed assets growing from approximately 21 billion USD in the first quarter of 2018 to nearly 27.5 billion USD by the second quarter of 2022.
The net fixed asset turnover ratio, which measures efficiency in generating revenues from fixed assets, remains relatively stable around 0.40 to 0.43 from 2018 through 2019. This stability indicates consistent utilization levels of fixed assets prior to the pandemic impact. Subsequently, the ratio drops sharply beginning in the first quarter of 2020, reaching its lowest point in the first half of 2021, reflecting diminished revenue generation possibly due to reduced operational activity or closures. A gradual improvement appears after this low, though the ratio remains below pre-2020 levels as of mid-2022. This pattern suggests a recovery in asset utilization efficiency but not yet to historical standards.
- Revenues
- Show a strong growth trajectory until the end of 2019, followed by a severe downturn during 2020 with an unusual negative value in Q3 2020, and a progressive recovery into 2022 reaching close to pre-pandemic figures.
- Property and Equipment, Net
- Consistently increase across all periods, indicating ongoing capital investments and asset base expansion despite fluctuations in revenues.
- Net Fixed Asset Turnover
- Relatively stable and healthy prior to 2020, collapsing sharply with the onset of the pandemic in early 2020, then slowly recovering but remaining below historical levels as of mid-2022.
In summary, the data reveals a significant disruption in the company’s financial performance beginning in early 2020, impacting both revenue generation and asset utilization. However, the sustained investment in property and equipment signals a commitment to long-term capacity. The gradual recovery in revenues and asset turnover ratios toward pre-disruption levels suggests improving operating conditions, though full normalization had not yet been reached by mid-2022.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Royal Caribbean Cruises Ltd., net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Revenues | 2,184,242) | 1,059,231) | 982,247) | 456,958) | 50,914) | 42,014) | 34,138) | (33,688) | 175,605) | 2,032,750) | 2,517,413) | 3,186,850) | 2,806,631) | 2,439,767) | 2,332,301) | 2,796,187) | 2,337,605) | 2,027,756) | ||||||
| Property and equipment, net | 27,556,323) | 26,940,867) | 25,907,949) | 25,699,712) | 25,872,907) | 25,794,798) | 25,246,595) | 25,362,549) | 25,647,715) | 25,857,215) | 25,466,808) | 25,005,404) | 24,855,174) | 23,641,251) | 23,466,163) | 22,599,589) | 21,429,719) | 21,207,786) | ||||||
| Operating lease right-of-use assets | 569,561) | 535,532) | 542,128) | 560,224) | 559,508) | 579,541) | 599,985) | 584,477) | 609,422) | 619,439) | 687,555) | 697,461) | 720,854) | 777,551) | —) | —) | —) | —) | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | 28,125,884) | 27,476,399) | 26,450,077) | 26,259,936) | 26,432,415) | 26,374,339) | 25,846,580) | 25,947,026) | 26,257,137) | 26,476,654) | 26,154,363) | 25,702,865) | 25,576,028) | 24,418,802) | 23,466,163) | 22,599,589) | 21,429,719) | 21,207,786) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 0.17 | 0.09 | 0.06 | 0.02 | 0.00 | 0.01 | 0.09 | 0.18 | 0.30 | 0.40 | 0.42 | 0.42 | 0.41 | 0.41 | 0.40 | 0.41 | 0.42 | 0.41 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||||||||||||||||||||
| Airbnb Inc. | 26.12 | 16.30 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Booking Holdings Inc. | 11.24 | 9.40 | 8.31 | 7.63 | 5.96 | 4.65 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Chipotle Mexican Grill Inc. | 1.62 | 1.59 | 1.54 | 1.49 | 1.48 | 1.41 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| DoorDash, Inc. | 5.90 | 6.51 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Starbucks Corp. | 2.14 | 2.08 | 1.99 | 1.91 | 1.68 | 1.61 | 1.64 | 1.66 | 1.82 | 1.83 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2022 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (RevenuesQ2 2022
+ RevenuesQ1 2022
+ RevenuesQ4 2021
+ RevenuesQ3 2021)
÷ Property and equipment, net (including operating lease, right-of-use asset)
= (2,184,242 + 1,059,231 + 982,247 + 456,958)
÷ 28,125,884 = 0.17
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals distinct trends in revenues, property and equipment investment, and net fixed asset turnover over the examined periods.
- Revenues
- Revenues demonstrate a cyclical pattern with a general rising trend until the end of 2019. Starting from approximately 2.0 billion USD in early 2018, revenues peak above 3.1 billion USD in the third quarter of 2019 before dipping towards the end of that year. A sharp decline is observed in early 2020, with revenues dropping dramatically into negative territory in the third quarter of 2020, reflecting a significant disruption. Following this trough, revenues begin a steady recovery through 2021 and into 2022, reaching over 2.1 billion USD by mid-2022.
- Property and Equipment, Net
- Investments in property and equipment show a consistent upward trend throughout the period. Starting from approximately 21.2 billion USD at the beginning of 2018, net property and equipment steadily increase over time. Despite minor fluctuations, the balance grows to over 28.1 billion USD by mid-2022, indicating ongoing capital expenditure or asset acquisitions and additions. This reflects the company's continued commitment to maintaining or expanding its asset base despite revenue volatility.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio indicates the efficiency of asset utilization to generate revenue. Initially, the ratio holds steady around 0.40 to 0.42 from 2018 through 2019, implying stable asset productivity. However, from early 2020, the ratio declines sharply, reaching a low of 0.00 or near zero in parts of 2021. This decline corresponds closely with the downturn in revenues, suggesting underutilization of assets during that period. A gradual recovery in this ratio is noticeable from late 2021 through mid-2022, though it remains below pre-2020 levels, indicating a partial but incomplete recovery in asset productivity.
Overall, the data reflects a significant impact disrupting operations around early 2020, which profoundly affected revenues and asset use efficiency. Despite this, investment in property and equipment continued to grow steadily. The post-disruption period shows progressive recovery in revenues and asset turnover efficiency, although these have not yet fully returned to former peaks by mid-2022.
Total Asset Turnover
Royal Caribbean Cruises Ltd., total asset turnover calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Revenues | 2,184,242) | 1,059,231) | 982,247) | 456,958) | 50,914) | 42,014) | 34,138) | (33,688) | 175,605) | 2,032,750) | 2,517,413) | 3,186,850) | 2,806,631) | 2,439,767) | 2,332,301) | 2,796,187) | 2,337,605) | 2,027,756) | ||||||
| Total assets | 33,943,245) | 32,939,998) | 32,258,355) | 32,665,566) | 33,691,962) | 34,347,073) | 32,465,187) | 31,828,810) | 33,306,543) | 33,445,053) | 30,320,284) | 29,825,461) | 29,808,962) | 28,720,049) | 27,698,270) | 27,093,540) | 24,057,036) | 23,970,972) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Total asset turnover1 | 0.14 | 0.08 | 0.05 | 0.02 | 0.00 | 0.01 | 0.07 | 0.15 | 0.24 | 0.32 | 0.36 | 0.36 | 0.35 | 0.34 | 0.34 | 0.34 | 0.37 | 0.37 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||
| Airbnb Inc. | 0.39 | 0.39 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Booking Holdings Inc. | 0.60 | 0.56 | 0.46 | 0.39 | 0.30 | 0.24 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Chipotle Mexican Grill Inc. | 1.24 | 1.21 | 1.13 | 1.09 | 1.08 | 1.03 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| DoorDash, Inc. | 0.57 | 0.77 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| McDonald’s Corp. | 0.48 | 0.47 | 0.43 | 0.43 | 0.42 | 0.38 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Starbucks Corp. | 1.08 | 1.05 | 0.93 | 0.92 | 0.84 | 0.77 | 0.80 | 0.83 | 0.97 | 0.97 | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2022 Calculation
Total asset turnover
= (RevenuesQ2 2022
+ RevenuesQ1 2022
+ RevenuesQ4 2021
+ RevenuesQ3 2021)
÷ Total assets
= (2,184,242 + 1,059,231 + 982,247 + 456,958)
÷ 33,943,245 = 0.14
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's operational and financial performance over the examined periods.
- Revenues
- The revenues displayed a general upward trajectory from early 2018 through 2019, increasing from approximately 2.03 billion US dollars in the first quarter of 2018 to nearly 3.19 billion US dollars by the third quarter of 2019. However, a steep decline occurred starting in the first quarter of 2020, coinciding with the global impact of the COVID-19 pandemic. Revenues plummeted to 2.03 billion US dollars by March 2020 and continued deteriorating sharply, reaching negative figures in the third quarter of 2020. Modest recovery signs began to appear in 2021, with revenues moving back to positive territory but remaining significantly below pre-pandemic levels. The recovery trend intensified through 2021 and into 2022, with revenues rising to over 2.18 billion US dollars by mid-2022.
- Total Assets
- The total assets showed a steady increase from approximately 24 billion US dollars in early 2018 to a peak around 33.45 billion US dollars in March 2020, just prior to the pandemic's full effect. Following this peak, total assets declined somewhat, fluctuating around 31.8 to 34.3 billion US dollars during 2020 through mid-2022, indicating ongoing asset management adjustments without a clear directional trend post-pandemic onset.
- Total Asset Turnover Ratio
- The total asset turnover ratio, which measures the efficiency of asset use to generate revenue, remained relatively stable at around 0.34 to 0.37 from 2018 through 2019. A significant decline manifested beginning in 2020, dropping drastically to levels as low as 0.01 in the first quarter of 2021. This decline corresponds with the decline in revenues amid a persistently high asset base, reflecting diminished operational efficiency during pandemic disruptions. A gradual, albeit slow, recovery in asset turnover was evident starting mid-2021 and continuing into 2022, as the ratio improved to 0.14 by the second quarter of 2022, indicating a tentative restoration of asset utilization efficiency in revenue generation.
Overall, the data illustrates the severe impact of the pandemic on revenue generation and operational efficiency, followed by a phased recovery as market conditions improved. The relatively stable asset base during this period, coupled with fluctuating turnover ratios, suggests strategic asset retention amid unprecedented revenue shocks, with gradual operational normalization underway.
Equity Turnover
Royal Caribbean Cruises Ltd., equity turnover calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Revenues | 2,184,242) | 1,059,231) | 982,247) | 456,958) | 50,914) | 42,014) | 34,138) | (33,688) | 175,605) | 2,032,750) | 2,517,413) | 3,186,850) | 2,806,631) | 2,439,767) | 2,332,301) | 2,796,187) | 2,337,605) | 2,027,756) | ||||||
| Shareholders’ equity | 3,398,098) | 3,988,928) | 5,085,556) | 6,467,498) | 7,884,015) | 9,172,382) | 8,760,669) | 8,328,594) | 8,963,905) | 10,231,775) | 12,163,846) | 11,976,907) | 11,538,403) | 11,269,070) | 11,105,461) | 11,338,135) | 10,773,698) | 10,646,796) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Equity turnover1 | 1.38 | 0.64 | 0.30 | 0.09 | 0.01 | 0.02 | 0.25 | 0.56 | 0.88 | 1.03 | 0.90 | 0.90 | 0.90 | 0.88 | 0.85 | 0.81 | 0.83 | 0.83 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||
| Airbnb Inc. | 1.41 | 1.40 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Booking Holdings Inc. | 3.66 | 2.86 | 1.77 | 1.66 | 1.50 | 1.19 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Chipotle Mexican Grill Inc. | 3.78 | 3.67 | 3.29 | 3.11 | 3.15 | 3.01 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| DoorDash, Inc. | 0.76 | 1.13 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| McDonald’s Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Starbucks Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2022 Calculation
Equity turnover
= (RevenuesQ2 2022
+ RevenuesQ1 2022
+ RevenuesQ4 2021
+ RevenuesQ3 2021)
÷ Shareholders’ equity
= (2,184,242 + 1,059,231 + 982,247 + 456,958)
÷ 3,398,098 = 1.38
2 Click competitor name to see calculations.
The analyzed data reveals several noteworthy trends over the observed periods. Revenues demonstrate a general upward movement from early 2018 through late 2019, reaching peaks around the third quarter of 2019. However, a dramatic decline is observed starting in the first quarter of 2020, plunging into negative territory in the third quarter of 2020, which indicates extraordinary financial distress or significant adjustments during that time frame. Although revenues begin to recover from late 2020 onwards, they remain considerably below pre-2020 levels until mid-2022, where a noticeable resurgence occurs.
Shareholders’ equity shows a steady moderate increase from early 2018 to the fourth quarter of 2019, peaking at over 12 billion US dollars. Starting in the first quarter of 2020, a pronounced decline surfaces, with equity levels falling sharply quarter after quarter through mid-2022. This sustained reduction in shareholders’ equity reflects decreased retained earnings or potential losses, likely related to the revenue contraction previously noted.
The equity turnover ratio, which reflects the efficiency with which equity capital generates revenues, remains relatively stable and close to 0.8 to 0.9 before 2020. Beginning in early 2020, this ratio becomes volatile and declines steeply, reaching a low near 0.01 by mid-2021. Subsequently, it shows a gradual recovery, reaching values above 1.0 by the second quarter of 2022, suggesting improving operational leverage or efficiency in using equity to generate sales as the business recovers.
- Revenues
- Exhibited consistent growth from 2018 through 2019, followed by a sudden and steep decline through 2020, with a turnaround commencing in late 2020 and gaining momentum into 2022.
- Shareholders’ Equity
- Increased moderately until the end of 2019, then faced continuous deterioration from 2020 through mid-2022, indicating financial strain and erosion of net assets during this period.
- Equity Turnover
- Remained stable prior to 2020, collapsed sharply during 2020 and 2021, and showed signs of recovery by mid-2022, reflecting fluctuations in the company's ability to generate revenue from its equity base.