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Royal Caribbean Group Beneish M-Score

: 11.65 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score 11.65 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Royal Caribbean Group's Beneish M-Score or its related term are showing as below:

NYSE:RCL' s Beneish M-Score Range Over the Past 10 Years
Min: -3.22   Med: -2.64   Max: 115.3
Current: 11.65

-3.22
115.3

During the past 13 years, the highest Beneish M-Score of Royal Caribbean Group was 115.30. The lowest was -3.22. And the median was -2.64.


Royal Caribbean Group Beneish M-Score Historical Data

The historical data trend for Royal Caribbean Group's Beneish M-Score 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.

* Premium members only.

Royal Caribbean Group Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.54 -2.62 -2.65 -2.88 -2.06

Royal Caribbean Group Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.32 -2.06 35.21 115.30 11.65

Competitive Comparison

For the Travel Services subindustry, Royal Caribbean Group's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, Royal Caribbean Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Royal Caribbean Group's Beneish M-Score falls into.



Royal Caribbean Group Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Royal Caribbean Group for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 19.3154+0.528 * -0.0735+0.404 * 0.9281+0.892 * 0.1245+0.115 * 1.0156
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 6.6373+4.679 * -0.0725-0.327 * 1.097
=11.65

* 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.

This Year (Sep21) TTM:Last Year (Sep20) TTM:
Accounts Receivable was $397.2 Mil.
Revenue was 456.958 + 50.914 + 42.014 + 34.138 = $584.0 Mil.
Gross Profit was -356.733 + -373.916 + -241.473 + -231.122 = $-1,203.2 Mil.
Total Current Assets was $4,167.4 Mil.
Total Assets was $32,665.6 Mil.
Property, Plant and Equipment(Net PPE) was $26,259.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,277.5 Mil.
Selling, General, & Admin. Expense(SGA) was $1,122.6 Mil.
Total Current Liabilities was $5,242.9 Mil.
Long-Term Debt & Capital Lease Obligation was $20,431.9 Mil.
Net Income was -1424.554 + -1347.255 + -1131.722 + -1366.935 = $-5,270.5 Mil.
Non Operating Income was 8.383 + -64.18 + -54.389 + -294.442 = $-404.6 Mil.
Cash Flow from Operations was -403.215 + -460.371 + -809.183 + -825.398 = $-2,498.2 Mil.
Accounts Receivable was $165.2 Mil.
Revenue was -33.688 + 175.605 + 2032.75 + 2517.413 = $4,692.1 Mil.
Gross Profit was -342.297 + -504.815 + 521.931 + 1035.894 = $710.7 Mil.
Total Current Assets was $3,531.8 Mil.
Total Assets was $31,828.8 Mil.
Property, Plant and Equipment(Net PPE) was $25,947.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,283.0 Mil.
Selling, General, & Admin. Expense(SGA) was $1,358.8 Mil.
Total Current Liabilities was $4,625.5 Mil.
Long-Term Debt & Capital Lease Obligation was $18,180.2 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(397.232 / 584.024) / (165.225 / 4692.08)
=0.68016383 / 0.03521359
=19.3154

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(710.713 / 4692.08) / (-1203.244 / 584.024)
=0.15147078 / -2.06026465
=-0.0735

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (4167.381 + 26259.936) / 32665.566) / (1 - (3531.795 + 25947.026) / 31828.81)
=0.06852014 / 0.07383214
=0.9281

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=584.024 / 4692.08
=0.1245

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(1282.988 / (1282.988 + 25947.026)) / (1277.54 / (1277.54 + 26259.936))
=0.04711669 / 0.04639278
=1.0156

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(1122.554 / 584.024) / (1358.794 / 4692.08)
=1.92210252 / 0.2895931
=6.6373

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((20431.859 + 5242.92) / 32665.566) / ((18180.231 + 4625.465) / 31828.81)
=0.78598911 / 0.71651111
=1.097

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-5270.466 - -404.628 - -2498.167) / 32665.566
=-0.0725

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Royal Caribbean Group has a M-score of 11.65 signals that the company is likely to be a manipulator.


Royal Caribbean Group Beneish M-Score Related Terms

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Royal Caribbean Group Business Description

Royal Caribbean Group logo
Industry
Consumer Cyclical » Travel & Leisure NAICS : 483111 SIC : 4489
Traded in Other Exchanges
Address
1050 Caribbean Way, Miami, FL, USA, 33132
Royal Caribbean is the world's second- largest cruise company, operating more than 60 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, allowing it to compete on the basis of innovation, quality of ships and service, variety of itineraries, choice of destinations, and price. The company is completed the divestiture of its Azamara brand in the first quarter of 2021.
Executives
Kulovaara Harri U officer: EVP, Maritime ROYAL CARIBBEAN CRUISE LINES 6100 BLUE LAGOON DRIVE, SUITE 200 MIAMI FL 33126
Pujol Henry L officer: SVP, Chief Accounting Officer ROYAL CARIBBEAN CRUISES LTD. 1050 CARIBBEAN WAY MIAMI FL 33132
Bayley Michael W officer: Pres& CEO,Royal Caribbean Intl ROYAL CARIBBEAN CRUISES LTD. 1050 CARIBBEAN WAY MIAMI FL 33132
Stein Bradley H officer: SVP, GC & ChiefComplianceOff 1050 CARIBBEAN WAY MIAMI FL 33132
Lutoff-perlo Lisa officer: Pres & CEO, Celebrity Cruises 1050 CARIBBEAN WAY MIAMI FL 33132
Liberty Jason T officer: EVP, Chief Financial Officer 1050 CARIBBEAN WAY MIAMI FL 33132
A Wilhelmsen A S 10 percent owner BEDDINGEN 8 AKER BRYGGE 1250 OSLO PO BOX 1583 VIKA N 0118 OSLO NORWAY Q8 00000
Wilhelmsen Arne Alexander director ANDERS WILHELMSEN & CO. AS BEDDINGEN 8, AKER BRYGGE OSLO Q8 NO-0118
Montiel Maritza Gomez director 475 W. TERRA COTTA AVE., SUITE E CRYSTAL LAKE IL 60014
Howe Stephen R. Jr. director C/O ROYAL CARIBBEAN CRUISES LTD. 1050 CARIBBEAN WAY MIAMI FL 33132
Sorensen Vagn O director ROYAL CARIBBEAN CRUISES LTD. 1050 CARIBBEAN WAY MIAMI FL 33132
Pritzker Thomas director PRITZKER & PRITZKER 200 W. MADISON STREET, 38TH FLOOR CHICAGO IL 60606
Ofer Eyal director CARLYLE M.G. LIMITED 18 UPPER BROOK STREET LONDON X0 W1Y 1PD
Moore Ann S director C/O AVON PRODUCS INC 1345 AVENUE OF THE AMERICAS NEW YORK NY 10105-0196
Brock John director 2500 WINDY RIDGE PARKWAY ATLANTA GA 30339

Royal Caribbean Group Headlines

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