Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Royal Caribbean Cruises Ltd., short-term (operating) activity 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Royal Caribbean Cruises Ltd. inventory turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Royal Caribbean Cruises Ltd. receivables turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Royal Caribbean Cruises Ltd. payables turnover ratio decreased from 2019 to 2020 and from 2020 to 2021. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Royal Caribbean Cruises Ltd. number of days of inventory outstanding deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Royal Caribbean Cruises Ltd. number of days of receivables outstanding deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Royal Caribbean Cruises Ltd. operating cycle deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Royal Caribbean Cruises Ltd. number of days of payables outstanding increased from 2019 to 2020 and from 2020 to 2021. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Royal Caribbean Cruises Ltd. cash conversion cycle deteriorated from 2019 to 2020 and from 2020 to 2021. |
Inventory Turnover
Royal Caribbean Cruises Ltd., inventory turnover 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) | ||||||
| Cruise operating expenses | 2,657,512) | 2,765,108) | 6,062,765) | 5,262,207) | 4,896,579) | |
| Inventories | 150,224) | 118,703) | 162,107) | 153,573) | 111,393) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 17.69 | 23.29 | 37.40 | 34.27 | 43.96 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Chipotle Mexican Grill Inc. | 177.91 | 186.94 | — | — | — | |
| McDonald’s Corp. | 144.74 | 136.62 | — | — | — | |
| Starbucks Corp. | 12.89 | 11.90 | 12.44 | — | — | |
| Inventory Turnover, Sector | ||||||
| Consumer Services | 27.58 | 23.36 | — | — | — | |
| Inventory Turnover, Industry | ||||||
| Consumer Discretionary | 7.04 | 7.48 | — | — | — | |
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
Inventory turnover = Cruise operating expenses ÷ Inventories
= 2,657,512 ÷ 150,224 = 17.69
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Royal Caribbean Cruises Ltd. inventory turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Receivables Turnover
Royal Caribbean Cruises Ltd., receivables turnover 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) | ||||||
| Revenues | 1,532,133) | 2,208,805) | 10,950,661) | 9,493,849) | 8,777,845) | |
| Trade and other receivables, net of allowances | 408,067) | 284,149) | 305,821) | 324,507) | 318,641) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 3.75 | 7.77 | 35.81 | 29.26 | 27.55 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Airbnb Inc. | 53.67 | 34.05 | — | — | — | |
| Booking Holdings Inc. | 8.07 | 12.85 | — | — | — | |
| Chipotle Mexican Grill Inc. | 75.77 | 57.27 | — | — | — | |
| McDonald’s Corp. | 5.23 | 3.86 | — | — | — | |
| Starbucks Corp. | 30.92 | 26.62 | 30.15 | — | — | |
| Receivables Turnover, Sector | ||||||
| Consumer Services | 14.46 | 12.83 | — | — | — | |
| Receivables Turnover, Industry | ||||||
| Consumer Discretionary | 21.22 | 21.85 | — | — | — | |
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
Receivables turnover = Revenues ÷ Trade and other receivables, net of allowances
= 1,532,133 ÷ 408,067 = 3.75
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Royal Caribbean Cruises Ltd. receivables turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Payables Turnover
Royal Caribbean Cruises Ltd., payables turnover 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) | ||||||
| Cruise operating expenses | 2,657,512) | 2,765,108) | 6,062,765) | 5,262,207) | 4,896,579) | |
| Accounts payable | 545,978) | 353,422) | 563,706) | 488,212) | 360,113) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 4.87 | 7.82 | 10.76 | 10.78 | 13.60 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Airbnb Inc. | 9.77 | 10.96 | — | — | — | |
| Booking Holdings Inc. | 6.91 | 9.25 | — | — | — | |
| Chipotle Mexican Grill Inc. | 35.79 | 40.52 | — | — | — | |
| McDonald’s Corp. | 7.99 | 9.42 | — | — | — | |
| Starbucks Corp. | 17.06 | 18.50 | 15.99 | — | — | |
| Payables Turnover, Sector | ||||||
| Consumer Services | 11.42 | 14.22 | — | — | — | |
| Payables Turnover, Industry | ||||||
| Consumer Discretionary | 4.66 | 4.74 | — | — | — | |
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
Payables turnover = Cruise operating expenses ÷ Accounts payable
= 2,657,512 ÷ 545,978 = 4.87
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Royal Caribbean Cruises Ltd. payables turnover ratio decreased from 2019 to 2020 and from 2020 to 2021. |
Working Capital Turnover
Royal Caribbean Cruises Ltd., working capital turnover 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 assets | 3,600,271) | 4,311,747) | 1,162,628) | 1,242,044) | 843,028) | |
| Less: Current liabilities | 7,285,683) | 4,537,121) | 7,952,896) | 7,112,165) | 4,790,264) | |
| Working capital | (3,685,412) | (225,374) | (6,790,268) | (5,870,121) | (3,947,236) | |
| Revenues | 1,532,133) | 2,208,805) | 10,950,661) | 9,493,849) | 8,777,845) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Airbnb Inc. | 0.99 | 0.89 | — | — | — | |
| Booking Holdings Inc. | 1.59 | 0.77 | — | — | — | |
| Chipotle Mexican Grill Inc. | 14.86 | 10.01 | — | — | — | |
| McDonald’s Corp. | 3.13 | 131.28 | — | — | — | |
| Starbucks Corp. | 18.11 | 51.17 | — | — | — | |
| Working Capital Turnover, Sector | ||||||
| Consumer Services | 3.49 | 3.50 | — | — | — | |
| Working Capital Turnover, Industry | ||||||
| Consumer Discretionary | 11.02 | 13.68 | — | — | — | |
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
Working capital turnover = Revenues ÷ Working capital
= 1,532,133 ÷ -3,685,412 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
Royal Caribbean Cruises Ltd., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 17.69 | 23.29 | 37.40 | 34.27 | 43.96 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 21 | 16 | 10 | 11 | 8 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Chipotle Mexican Grill Inc. | 2 | 2 | — | — | — | |
| McDonald’s Corp. | 3 | 3 | — | — | — | |
| Starbucks Corp. | 28 | 31 | 29 | — | — | |
| Average Inventory Processing Period, Sector | ||||||
| Consumer Services | 13 | 16 | — | — | — | |
| Average Inventory Processing Period, Industry | ||||||
| Consumer Discretionary | 52 | 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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 17.69 = 21
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Royal Caribbean Cruises Ltd. number of days of inventory outstanding deteriorated from 2019 to 2020 and from 2020 to 2021. |
Average Receivable Collection Period
Royal Caribbean Cruises Ltd., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 3.75 | 7.77 | 35.81 | 29.26 | 27.55 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 97 | 47 | 10 | 12 | 13 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Airbnb Inc. | 7 | 11 | — | — | — | |
| Booking Holdings Inc. | 45 | 28 | — | — | — | |
| Chipotle Mexican Grill Inc. | 5 | 6 | — | — | — | |
| McDonald’s Corp. | 70 | 95 | — | — | — | |
| Starbucks Corp. | 12 | 14 | 12 | — | — | |
| Average Receivable Collection Period, Sector | ||||||
| Consumer Services | 25 | 28 | — | — | — | |
| Average Receivable Collection Period, Industry | ||||||
| Consumer Discretionary | 17 | 17 | — | — | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 3.75 = 97
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Royal Caribbean Cruises Ltd. number of days of receivables outstanding deteriorated from 2019 to 2020 and from 2020 to 2021. |
Operating Cycle
Royal Caribbean Cruises Ltd., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 21 | 16 | 10 | 11 | 8 | |
| Average receivable collection period | 97 | 47 | 10 | 12 | 13 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 118 | 63 | 20 | 23 | 21 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Chipotle Mexican Grill Inc. | 7 | 8 | — | — | — | |
| McDonald’s Corp. | 73 | 98 | — | — | — | |
| Starbucks Corp. | 40 | 45 | 41 | — | — | |
| Operating Cycle, Sector | ||||||
| Consumer Services | 38 | 44 | — | — | — | |
| Operating Cycle, Industry | ||||||
| Consumer Discretionary | 69 | 66 | — | — | — | |
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 cycle = Average inventory processing period + Average receivable collection period
= 21 + 97 = 118
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Royal Caribbean Cruises Ltd. operating cycle deteriorated from 2019 to 2020 and from 2020 to 2021. |
Average Payables Payment Period
Royal Caribbean Cruises Ltd., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 4.87 | 7.82 | 10.76 | 10.78 | 13.60 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 75 | 47 | 34 | 34 | 27 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Airbnb Inc. | 37 | 33 | — | — | — | |
| Booking Holdings Inc. | 53 | 39 | — | — | — | |
| Chipotle Mexican Grill Inc. | 10 | 9 | — | — | — | |
| McDonald’s Corp. | 46 | 39 | — | — | — | |
| Starbucks Corp. | 21 | 20 | 23 | — | — | |
| Average Payables Payment Period, Sector | ||||||
| Consumer Services | 32 | 26 | — | — | — | |
| Average Payables Payment Period, Industry | ||||||
| Consumer Discretionary | 78 | 77 | — | — | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.87 = 75
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Royal Caribbean Cruises Ltd. number of days of payables outstanding increased from 2019 to 2020 and from 2020 to 2021. |
Cash Conversion Cycle
Royal Caribbean Cruises Ltd., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 21 | 16 | 10 | 11 | 8 | |
| Average receivable collection period | 97 | 47 | 10 | 12 | 13 | |
| Average payables payment period | 75 | 47 | 34 | 34 | 27 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 43 | 16 | -14 | -11 | -6 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Chipotle Mexican Grill Inc. | -3 | -1 | — | — | — | |
| McDonald’s Corp. | 27 | 59 | — | — | — | |
| Starbucks Corp. | 19 | 25 | 18 | — | — | |
| Cash Conversion Cycle, Sector | ||||||
| Consumer Services | 6 | 18 | — | — | — | |
| Cash Conversion Cycle, Industry | ||||||
| Consumer Discretionary | -9 | -11 | — | — | — | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 21 + 97 – 75 = 43
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Royal Caribbean Cruises Ltd. cash conversion cycle deteriorated from 2019 to 2020 and from 2020 to 2021. |