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Royal Caribbean Group Altman Z-Score

: 0.04 (As of Today)
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Warning Sign:

Altman Z-score of 0.04 is in distress zone. This implies bankrupcy possibility in the next two years.

Royal Caribbean Group has a Altman Z-Score of 0.04, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

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

NYSE:RCL' s Altman Z-Score Range Over the Past 10 Years
Min: 0.04   Med: 1.3   Max: 2.34
Current: 0.04

0.04
2.34

During the past 13 years, Royal Caribbean Group's highest Altman Z-Score was 2.34. The lowest was 0.04. And the median was 1.30.


Royal Caribbean Group Altman Z-Score Historical Data

The historical data trend for Royal Caribbean Group's Altman Z-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
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.71 2.34 1.60 1.80 0.25

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
Altman Z-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 0.41 0.25 0.36 0.25 0.17

Competitive Comparison

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

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

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



Royal Caribbean Group Altman Z-Score Calculation

Altman 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.

Royal Caribbean Group's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*-0.0329+1.4*0.0508+3.3*-0.1221+0.6*0.6611+1.0*0.0179
=0.04

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Sep. 2021:
Total Assets was $32,665.6 Mil.
Total Current Assets was $4,167.4 Mil.
Total Current Liabilities was $5,242.9 Mil.
Retained Earnings was $1,659.2 Mil.
Pre-Tax Income was -1424.554 + -1347.234 + -1131.722 + -1366.935 = $-5,270.4 Mil.
Interest Expense was -430.661 + -304.811 + -272.514 + -273.089 = $-1,281.1 Mil.
Revenue was 456.958 + 50.914 + 42.014 + 34.138 = $584.0 Mil.
Market Cap (Today) was $17,320.6 Mil.
Total Liabilities was $26,198.1 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(4167.381 - 5242.92)/32665.566
=-0.0329

X2=Retained Earnings/Total Assets
=1659.244/32665.566
=0.0508

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-5270.445 - -1281.075)/32665.566
=-0.1221

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=17320.614/26198.068
=0.6611

X5=Revenue/Total Assets
=584.024/32665.566
=0.0179

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Royal Caribbean Group has a Altman Z-Score of 0.04 indicating it is in Distress Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Royal Caribbean Group  (NYSE:RCL) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Royal Caribbean Group Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Royal Caribbean Group's Altman Z-Score 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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