Aureus
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Royal Caribbean Cruises Ltd.(RCL)

F

Financial data as of Dec 31, 2024Declining · Consumer Discretionary

FCF Margin12.1%Free Cash Flow / Revenue
Cash Conversion183.0%Operating CF / Net Income
Free Cash Flow$2.0B
Revenue$16.5B
Net Cash-$20.4BNet debt position
Debt / FCF10.4xElevated debt burden
Current Ratio0.17Tight short-term liquidity
YoY FCF Growth-275.7%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
-2Very high debt-to-FCF ratio (10.4x)
→
-1Current ratio below 1.0 (0.17)
→
-1Significant YoY FCF decline (-275.7%)
→
-0.5Highly volatile FCF (consistency: 1.50)
→
FinalF

Analysis Summary

Strengths

  • Healthy FCF margin (12.1%)
  • Excellent cash conversion (183%)

Concerns

  • Heavy debt position ($20.4B)
  • High debt-to-FCF ratio (10.4x)
  • Current ratio below 1.0 — tight short-term liquidity
  • Significant YoY FCF decline (-275.7%)
  • Highly volatile quarterly FCF
  • Significant FCF decline (-275.7% YoY)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin12.1%
Net Margin17.5%
Operating CF Margin31.9%
CapEx Ratio19.8%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$20.4BNet debt position
Debt / FCF10.4xElevated debt burden
Current Ratio0.17Tight liquidity
Debt / Equity2.75High leverage

Quarterly FCF Trend

-275.7% YoYDeclining (-275.7%)

Free cash flow per quarter

Sector Comparison — Consumer Discretionary

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameRoyal Caribbean Cruises Ltd.
SectorConsumer Discretionary
Free Cash Flow$2.0B
Revenue$16.5B
Net Income$2.9B
Operating Cash Flow$5.3B
Capital Expenditure$3.3B
FCF Margin12.1%
Cash Conversion Rate183.0%
Net Margin17.5%
Total Debt$20.8B
Total Cash$388.0M
Net Cash-$20.4B
Current Ratio0.17
Debt / Equity2.75
Debt / FCF10.4x
YoY FCF Growth-275.7%
Positive Quarters4 of 5
Trend DirectionDeclining
Report DateDec 31, 2024
GradeF
Data SourceYahoo Finance

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