Royal Caribbean GroupRCL -1.40%81 Interest Coverage is 4.18 as of Mar. 2026, which is 16% below its 10-year median of 4.95. GuruFocus rates RCL with a GF Score™ of 81/100 and a GF Value™ of $247.23 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 609 Travel & Leisure companies, Royal Caribbean Group ranks worse than 50.9% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Royal Caribbean Group's
Operating Income
for the
three
months ended in Mar. 2026 was $1,162 Mil. Royal Caribbean Group's Interest Expense for the
three
months ended in Mar. 2026 was $-278 Mil.
Royal Caribbean Group's interest coverage for the quarter that ended in Mar. 2026 was 4.18.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Royal Caribbean Group's Interest Coverage or its related term are showing as below:
RCL'
s Interest Coverage Range Over the Past 10 Years
Min: 2.05 Med: 4.95 Max: 5.81
Current: 5.02
RCL's Interest Coverage is ranked worse than 50.9% of 609
companies
in the Travel & Leisure industry
Industry Median: 5.35
vs RCL: 5.02
Royal Caribbean Group (NYSE:RCL) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Royal Caribbean Group Interest Coverage Related Terms
Royal Caribbean Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for Royal Caribbean Group's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
RCL vs ABNB, VIK, CCL: Interest Coverage Comparison
For the Travel Services subindustry, Royal Caribbean Group's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Royal Caribbean Group Interest Coverage vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Royal Caribbean Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Royal Caribbean Group's Interest Coverage falls into.
Royal Caribbean Group Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Royal Caribbean Group (RCL) has a Interest Coverage of 4.18 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Royal Caribbean Group and its competitors. This is 16% below median its historical median of 4.95. Over the past decade, Royal Caribbean Group's Interest Coverage has ranged from 2.05 to 5.81. According to the industry distribution chart, Royal Caribbean Group ranks #310 out of 609 companies in the Travel & Leisure industry, placing it in the top 50.9%.
Is Royal Caribbean Group's Interest Coverage too high?
Royal Caribbean Group's current Interest Coverage of 4.18 is 16% below median its 10-year median of 4.95. Over the past 10 years, this metric has ranged from a low of 2.05 to a high of 5.81. The Travel & Leisure industry median Interest Coverage is 5.35. Royal Caribbean Group's value of 4.18 is 21.9% below this industry median. Based on the distribution chart, Royal Caribbean Group ranks #310 out of 609 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Royal Caribbean Group has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Royal Caribbean Group's Interest Coverage compare to ABNB and VIK?
According to the Travel & Leisure industry distribution chart, Royal Caribbean Group ranks #310 out of 609 companies for Interest Coverage. This places Royal Caribbean Group in the lower half of its industry. The industry median Interest Coverage is 5.35. Royal Caribbean Group's value of 4.18 is 21.9% below this benchmark. Historically, Royal Caribbean Group's own Interest Coverage has ranged from 2.05 to 5.81 over the past decade. While the company's 10-year median is 4.95 vs. the industry median of 5.35, Royal Caribbean Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Travel & Leisure company?
The median Interest Coverage among Travel & Leisure companies is 5.35, based on 609 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Royal Caribbean Group's current Interest Coverage of 4.18 is 21.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Royal Caribbean Group and its competitors. For the Travel & Leisure industry, the median Interest Coverage is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royal Caribbean Group's current Interest Coverage is 4.18, which is 16% below median its own 10-year median of 4.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royal Caribbean Group stock overvalued right now?
Based on GuruFocus' analysis, Royal Caribbean Group (RCL) is currently considered Modestly Overvalued. The stock's GF Value™ is $247.23, compared to a current price of $318.13 — trading 28.7% above its estimated fair value. The current Interest Coverage is 4.18, which is 16% below median its 10-year median of 4.95 and 21.9% below the Travel & Leisure industry median of 5.35. Royal Caribbean Group's overall GF Score™ is 81/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Royal Caribbean Group (RCL), the current Interest Coverage is 4.18 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Royal Caribbean Group (RCL) Overvalued in 2026?
Based on GuruFocus' analysis, Royal Caribbean Group stock appears to be overvalued.
The current stock price of $318.13 is trading 28.7% above its estimated GF Value™ of $247.23.
GuruFocus considers Royal Caribbean Group to be Modestly Overvalued.
Key valuation signals for RCL:
Interest Coverage: 4.18 (16% below median its 10-year median of 4.95)
GF Value™: $247.23 vs. price of $318.13 (28.7% above fair value)
Industry Position: 21.9% below the Travel & Leisure median (#310 of 609)
No single metric tells the full story. See the RCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Royal Caribbean is the world's second-largest cruise company by revenues, operating 69 ships across five global and partner brands in the cruise vacation industry. Brands the company operates include Royal Caribbean International, Celebrity Cruises, and Silversea. The company also has a 50% investment in a joint venture that operates TUI Cruises and Hapag-Lloyd Cruises. The selection of brands in the portfolio allows Royal to compete on the basis of innovation, quality of ships and service, variety of itineraries, choice of destinations, and price. The company completed the divestiture of its Azamara brand in 2021, plans to launch its new Celebrity River Cruise brand in 2027, and is set to operate eight private destination locations by 2028.
81GF Score
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