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Royal Caribbean Group Financial Strength

: 2 (As of Sep. 2021)
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Royal Caribbean Group has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Royal Caribbean Group displays poor financial strength. Usually this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Royal Caribbean Group did not have earnings to cover the interest expense. Royal Caribbean Group's debt to revenue ratio for the quarter that ended in Sep. 2021 was 11.74. As of today, Royal Caribbean Group's Altman Z-Score is 0.05.


Competitive Comparison

For the Travel Services subindustry, Royal Caribbean Group's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, Royal Caribbean Group's Financial Strength distribution charts can be found below:

* The bar in red indicates where Royal Caribbean Group's Financial Strength falls into.



Royal Caribbean Group Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

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:

Royal Caribbean Group's Interest Expense for the months ended in Sep. 2021 was $-430.7 Mil. Its Operating Income for the months ended in Sep. 2021 was $-1,006.1 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2021 was $20,431.9 Mil.

Royal Caribbean Group's Interest Coverage for the quarter that ended in Sep. 2021 is

Royal Caribbean Group did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Royal Caribbean Group's Debt to Revenue Ratio for the quarter that ended in Sep. 2021 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2021 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1028.084 + 20431.859) / 1827.832
=11.74

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Royal Caribbean Group has a Z-score of 0.05, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.05 is in distress zone. This implies bankrupcy possibility in the next two years.

* 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  (NYSE:RCL) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Royal Caribbean Group has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Royal Caribbean Group Financial Strength Related Terms

Thank you for viewing the detailed overview of Royal Caribbean Group's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


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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