Stock Analysis on Net

Royal Caribbean Cruises Ltd. (NYSE:RCL)

This company has been moved to the archive! The financial data has not been updated since July 29, 2022.

Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

Royal Caribbean Cruises Ltd., FCFF calculation

US$ in thousands

Microsoft Excel
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).

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.

Interest Paid, Net of Tax

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

US$ in thousands

Microsoft Excel
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


Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel
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. 21.22
Booking Holdings Inc. 21.82
Chipotle Mexican Grill Inc.
McDonald’s Corp. 29.78
Starbucks Corp. 29.52
EV/FCFF, Sector
Consumer Services 32.28
EV/FCFF, Industry
Consumer Discretionary 67.27

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.


Enterprise Value to FCFF Ratio, Historical

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

Microsoft Excel
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
Chipotle Mexican Grill Inc. 50.61 146.36 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 31.26 115.64 25.85
EV/FCFF, Industry
Consumer Discretionary 59.78 45.72 30.57

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 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.