Royal Caribbean Cruises Ltd., FCFF calculation

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income (loss) attributable to Royal Caribbean Cruises Ltd.	(5,260,499)	(5,797,462)	1,878,887)	1,811,042)	1,625,133)
Net income attributable to noncontrolling interest	—)	22,332)	28,713)	4,750)	—)
Net noncash charges	1,901,072)	3,374,745)	1,364,078)	1,229,102)	911,190)
Changes in operating assets and liabilities	1,481,612)	(1,331,268)	444,688)	434,245)	338,243)
Net cash provided by (used in) operating activities	(1,877,815)	(3,731,653)	3,716,366)	3,479,139)	2,874,566)
Cash paid during the year for interest, net of amount capitalized, net of tax¹	827,154)	417,077)	242,174)	249,588)	246,844)
Capitalized interest costs, net of tax²	58,300)	58,946)	55,551)	49,035)	23,931)
Purchases of property and equipment	(2,229,704)	(1,965,131)	(3,024,663)	(3,660,028)	(564,138)
Free cash flow to the firm (FCFF)	(3,222,065)	(5,220,761)	989,428)	117,733)	2,581,204)

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).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Royal Caribbean Cruises Ltd. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Royal Caribbean Cruises Ltd. FCFF decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.

Royal Caribbean Cruises Ltd., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Effective Income Tax Rate (EITR)
EITR¹	0.85%	0.26%	1.68%	1.14%	1.11%
Interest Paid, Net of Tax
Cash paid during the year for interest, net of amount capitalized, before tax	834,245)	418,164)	246,312)	252,466)	249,615)
Less: Cash paid during the year for interest, net of amount capitalized, tax²	7,091)	1,087)	4,138)	2,878)	2,771)
Cash paid during the year for interest, net of amount capitalized, net of tax	827,154)	417,077)	242,174)	249,588)	246,844)
Interest Costs Capitalized, Net of Tax
Capitalized interest costs, before tax	58,800)	59,100)	56,500)	49,600)	24,200)
Less: Capitalized interest costs, tax³	500)	154)	949)	565)	269)
Capitalized interest costs, net of tax	58,300)	58,946)	55,551)	49,035)	23,931)

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 See details »

² 2021 Calculation
Cash paid during the year for interest, net of amount capitalized, tax = Cash paid during the year for interest, net of amount capitalized × EITR
= 834,245 × 0.85% = 7,091

³ 2021 Calculation
Capitalized interest costs, tax = Capitalized interest costs × EITR
= 58,800 × 0.85% = 500

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Royal Caribbean Cruises Ltd., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	28,261,911)
Free cash flow to the firm (FCFF)	(3,222,065)
Valuation Ratio
EV/FCFF	—
Benchmarks
EV/FCFF, Competitors¹
Airbnb Inc.	24.55
Booking Holdings Inc.	16.05
Carnival Corp. & plc	13.60
Chipotle Mexican Grill Inc.	69.82
McDonald’s Corp.	27.89
Starbucks Corp.	23.12
EV/FCFF, Sector
Consumer Services	58.85
EV/FCFF, Industry
Consumer Discretionary	65.17

Based on: 10-K (reporting date: 2021-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Royal Caribbean Cruises Ltd., historical EV/FCFF 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)
Enterprise value (EV)¹	37,174,624)	37,799,471)	29,507,089)	35,786,782)	35,324,272)
Free cash flow to the firm (FCFF)²	(3,222,065)	(5,220,761)	989,428)	117,733)	2,581,204)
Valuation Ratio
EV/FCFF³	—	—	29.82	303.96	13.69
Benchmarks
EV/FCFF, Competitors⁴
Airbnb Inc.	42.36	—	—	—	—
Booking Holdings Inc.	36.39	—	15.01	—	—
Carnival Corp. & plc	—	—	175.24	24.76	—
Chipotle Mexican Grill Inc.	50.61	146.38	56.84	—	—
McDonald’s Corp.	26.32	34.80	29.06	—	—
Starbucks Corp.	28.09	281.97	30.98	8.45	—
EV/FCFF, Sector
Consumer Services	56.26	—	28.28	—	—
EV/FCFF, Industry
Consumer Discretionary	66.77	52.40	31.02	—	—

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 See details »

² See details »

³ 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 37,174,624 ÷ -3,222,065 = —

⁴ Click competitor name to see calculations.

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Royal Caribbean Cruises Ltd. (NYSE:RCL)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical