The business behind the dividend
| Measure | RCL | Median | Formula |
|---|---|---|---|
| Return on equity | 42.5% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 15.6% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $757.00m | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $1.24bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 27.4% | 15.0% | Operating income ÷ revenue |
| Net margin | 23.8% | 10.2% | Net income ÷ revenue |
| Debt to equity | 2.13x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 4.95x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 0.18x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.51x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Long-term debt to working capital — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 42.5% | 38.0% | 35.9% | -75.1% | -103.4% | -66.2% | 15.4% | 16.3% | 15.2% | 14.1% | 15.2% |
| Return on capital employed | 15.6% | 14.9% | 11.0% | -2.9% | -14.8% | -16.4% | 9.0% | 8.7% | 9.6% | 8.6% | 8.7% |
| Operating margin | 27.4% | 24.9% | 20.7% | -8.7% | -252.6% | -208.3% | 19.0% | 20.0% | 19.9% | 17.4% | 19.0% |
| Net margin | 23.8% | 17.5% | 12.2% | -24.4% | -343.3% | -262.5% | 17.2% | 19.1% | 18.5% | 15.1% | 15.1% |
| Debt to equity | 2.13x | 2.65x | 4.54x | 8.15x | 4.15x | 2.21x | 0.91x | 0.97x | 0.70x | 0.89x | 2.13x |
| Current ratio | 0.18x | 0.17x | 0.19x | 0.37x | 0.49x | 0.95x | 0.15x | 0.17x | 0.19x | 0.17x | 0.18x |
| Cash conversion | 1.51x | 1.83x | 2.64x | — | — | — | 1.98x | 1.92x | 1.77x | 1.96x | 1.92x |
How it compares in industrials
Among the 74 industrials companies here measured on free cash flow, Royal Caribbean Cruises pays out less than 4 of them. The median for that group is 28.1%, against this company’s 66.7%.
Closest on free cash flow
- Union Pacific (UNP) 58.8%
- Paccar (PCAR) 61.7%
- Illinois Tool Works (ITW) 65.9%
- Stanley Black & Decker (SWK) 72.8%
Same sector and same denominator, so the figures are comparable. All 81 in industrials →