Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Royal Caribbean Cruises Ltd., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Royal Caribbean Cruises Ltd. gross profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Royal Caribbean Cruises Ltd. operating profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Royal Caribbean Cruises Ltd. net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Royal Caribbean Cruises Ltd. ROE deteriorated from 2019 to 2020 and from 2020 to 2021. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Royal Caribbean Cruises Ltd. ROA deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Gross Profit Margin
Royal Caribbean Cruises Ltd., gross profit margin 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) | ||||||
| Gross profit (loss) | (1,125,379) | (556,303) | 4,887,896) | 4,231,642) | 3,881,266) | |
| Revenues | 1,532,133) | 2,208,805) | 10,950,661) | 9,493,849) | 8,777,845) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | -73.45% | -25.19% | 44.64% | 44.57% | 44.22% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Airbnb Inc. | 80.71% | 74.07% | — | — | — | |
| Chipotle Mexican Grill Inc. | 22.62% | 17.40% | 20.45% | — | — | |
| McDonald’s Corp. | 54.17% | 50.77% | 52.74% | — | — | |
| Starbucks Corp. | 28.87% | 21.51% | 28.25% | 29.74% | — | |
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
Gross profit margin = 100 × Gross profit (loss) ÷ Revenues
= 100 × -1,125,379 ÷ 1,532,133 = -73.45%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Royal Caribbean Cruises Ltd. gross profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Operating Profit Margin
Royal Caribbean Cruises Ltd., operating profit margin 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) | ||||||
| Operating income (loss) | (3,870,334) | (4,601,557) | 2,082,701) | 1,894,801) | 1,744,056) | |
| Revenues | 1,532,133) | 2,208,805) | 10,950,661) | 9,493,849) | 8,777,845) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | -252.61% | -208.33% | 19.02% | 19.96% | 19.87% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Airbnb Inc. | 7.17% | -106.27% | — | — | — | |
| Booking Holdings Inc. | 22.78% | -9.28% | 35.48% | — | — | |
| Chipotle Mexican Grill Inc. | 10.67% | 4.85% | 7.95% | — | — | |
| McDonald’s Corp. | 44.59% | 38.13% | 43.03% | — | — | |
| Starbucks Corp. | 16.77% | 6.64% | 15.38% | 15.71% | — | |
| Operating Profit Margin, Sector | ||||||
| Consumer Services | 24.69% | 8.41% | 27.75% | — | — | |
| Operating Profit Margin, Industry | ||||||
| Consumer Discretionary | 8.79% | 6.48% | 7.63% | — | — | |
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
Operating profit margin = 100 × Operating income (loss) ÷ Revenues
= 100 × -3,870,334 ÷ 1,532,133 = -252.61%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Royal Caribbean Cruises Ltd. operating profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Net Profit Margin
Royal Caribbean Cruises Ltd., net profit margin 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) | |
| Revenues | 1,532,133) | 2,208,805) | 10,950,661) | 9,493,849) | 8,777,845) | |
| Profitability Ratio | ||||||
| Net profit margin1 | -343.34% | -262.47% | 17.16% | 19.08% | 18.51% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Airbnb Inc. | -5.88% | -135.71% | — | — | — | |
| Booking Holdings Inc. | 10.63% | 0.87% | 32.29% | — | — | |
| Chipotle Mexican Grill Inc. | 8.65% | 5.94% | 6.27% | — | — | |
| McDonald’s Corp. | 32.49% | 24.63% | 28.59% | — | — | |
| Starbucks Corp. | 14.45% | 3.95% | 13.58% | 18.28% | — | |
| Net Profit Margin, Sector | ||||||
| Consumer Services | 17.21% | 2.53% | 21.75% | — | — | |
| Net Profit Margin, Industry | ||||||
| Consumer Discretionary | 9.20% | 5.24% | 5.92% | — | — | |
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).
1 2021 Calculation
Net profit margin = 100 × Net income (loss) attributable to Royal Caribbean Cruises Ltd. ÷ Revenues
= 100 × -5,260,499 ÷ 1,532,133 = -343.34%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Royal Caribbean Cruises Ltd. net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Return on Equity (ROE)
Royal Caribbean Cruises Ltd., ROE 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) | |
| Shareholders’ equity | 5,085,556) | 8,760,669) | 12,163,846) | 11,105,461) | 10,702,303) | |
| Profitability Ratio | ||||||
| ROE1 | -103.44% | -66.18% | 15.45% | 16.31% | 15.18% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Airbnb Inc. | -7.37% | -158.00% | — | — | — | |
| Booking Holdings Inc. | 18.86% | 1.21% | 82.00% | — | — | |
| Chipotle Mexican Grill Inc. | 28.42% | 17.61% | 20.81% | — | — | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | 386.34% | — | |
| ROE, Sector | ||||||
| Consumer Services | 396.84% | — | — | — | — | |
| ROE, Industry | ||||||
| Consumer Discretionary | 34.37% | 25.29% | 34.62% | — | — | |
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
ROE = 100 × Net income (loss) attributable to Royal Caribbean Cruises Ltd. ÷ Shareholders’ equity
= 100 × -5,260,499 ÷ 5,085,556 = -103.44%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Royal Caribbean Cruises Ltd. ROE deteriorated from 2019 to 2020 and from 2020 to 2021. |
Return on Assets (ROA)
Royal Caribbean Cruises Ltd., ROA 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) | |
| Total assets | 32,258,355) | 32,465,187) | 30,320,284) | 27,698,270) | 22,296,317) | |
| Profitability Ratio | ||||||
| ROA1 | -16.31% | -17.86% | 6.20% | 6.54% | 7.29% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Airbnb Inc. | -2.57% | -43.70% | — | — | — | |
| Booking Holdings Inc. | 4.93% | 0.27% | 22.73% | — | — | |
| Chipotle Mexican Grill Inc. | 9.81% | 5.95% | 6.86% | — | — | |
| McDonald’s Corp. | 14.01% | 8.99% | 12.68% | — | — | |
| Starbucks Corp. | 13.38% | 3.16% | 18.73% | 18.70% | — | |
| ROA, Sector | ||||||
| Consumer Services | 10.22% | 1.24% | 15.92% | — | — | |
| ROA, Industry | ||||||
| Consumer Discretionary | 8.07% | 4.42% | 5.57% | — | — | |
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).
1 2021 Calculation
ROA = 100 × Net income (loss) attributable to Royal Caribbean Cruises Ltd. ÷ Total assets
= 100 × -5,260,499 ÷ 32,258,355 = -16.31%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Royal Caribbean Cruises Ltd. ROA deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |