Latest Ratios: P/E Ratio 14.8x · EV/EBITDA 12.8x · ROE 47.5%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $61.8B | $76.1B | $64.4B | $36.6B | $12.6B | $19.4B | $16.0B | $28.0B | $20.7B | $25.7B | $17.7B |
| Enterprise Value | $83.6B | $98.0B | $84.8B | $58.3B | $34.7B | $38.4B | $32.3B | $39.5B | $31.2B | $33.1B | $27.0B |
| P/E Ratio → | 14.75 | 17.87 | 21.09 | 20.52 | — | — | — | 14.92 | 11.42 | 15.84 | 13.83 |
| P/S Ratio | 3.44 | 4.25 | 3.90 | 2.64 | 1.43 | 12.64 | 7.25 | 2.56 | 2.18 | 2.93 | 2.09 |
| P/B Ratio | 6.14 | 7.43 | 8.32 | 7.48 | 4.39 | 3.81 | 1.83 | 2.20 | 1.78 | 2.40 | 1.95 |
| P/FCF | 49.97 | 61.61 | 32.23 | 63.18 | — | — | — | 40.52 | — | 11.14 | 794.85 |
| P/OCF | 9.55 | 11.78 | 12.22 | 8.19 | 26.21 | — | — | 7.54 | 5.95 | 8.95 | 7.05 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.46 | 5.14 | 4.19 | 3.92 | 25.04 | 14.63 | 3.61 | 3.28 | 3.78 | 3.18 |
| EV / EBITDA | 12.81 | 15.02 | 14.86 | 13.45 | 54.08 | — | — | 11.87 | 10.65 | 12.30 | 11.38 |
| EV / EBIT | 17.02 | 18.50 | 18.90 | 18.76 | — | — | — | 17.06 | 14.50 | 17.22 | 16.97 |
| EV / FCF | — | 79.25 | 42.46 | 100.48 | — | — | — | 57.13 | — | 14.35 | 1209.36 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 46.8% | 46.8% | 47.5% | 44.1% | 25.2% | -78.8% | -25.2% | 44.6% | 44.6% | 44.2% | 41.0% |
| Operating Margin | 27.4% | 27.4% | 24.9% | 20.7% | -8.7% | -252.6% | -208.3% | 19.0% | 20.0% | 19.9% | 17.4% |
| Net Profit Margin | 23.8% | 23.8% | 17.5% | 12.2% | -24.4% | -343.3% | -262.5% | 17.2% | 19.1% | 18.5% | 15.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 47.5% | 47.5% | 45.5% | 43.7% | -54.2% | -76.0% | -53.9% | 15.4% | 16.2% | 16.4% | 14.9% |
| ROA | 10.9% | 10.9% | 8.0% | 4.9% | -6.5% | -16.3% | -18.5% | 6.5% | 7.2% | 7.3% | 6.0% |
| ROIC | 12.2% | 12.2% | 11.3% | 8.4% | -2.3% | -11.8% | -14.0% | 6.7% | 7.1% | 7.2% | 6.4% |
| ROCE | 17.3% | 17.3% | 15.5% | 11.3% | -3.1% | -14.6% | -18.3% | 9.7% | 9.9% | 9.9% | 8.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.21 | 2.21 | 2.69 | 4.52 | 8.36 | 4.27 | 2.28 | 0.92 | 0.93 | 0.70 | 1.03 |
| Debt / EBITDA | 3.47 | 3.47 | 3.65 | 5.11 | 37.43 | — | — | 3.53 | 3.68 | 2.80 | 3.96 |
| Net Debt / Equity | — | 2.13 | 2.64 | 4.42 | 7.69 | 3.73 | 1.86 | 0.90 | 0.90 | 0.69 | 1.01 |
| Net Debt / EBITDA | 3.34 | 3.34 | 3.58 | 4.99 | 34.41 | — | — | 3.45 | 3.58 | 2.75 | 3.90 |
| Debt / FCF | — | 17.65 | 10.23 | 37.30 | — | — | — | 16.61 | — | 3.21 | 414.51 |
| Interest Coverage | 5.34 | 5.34 | 2.82 | 2.22 | -0.58 | -3.07 | -5.84 | 5.67 | 6.44 | 6.42 | 5.18 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.18 | 0.18 | 0.17 | 0.19 | 0.37 | 0.49 | 0.95 | 0.15 | 0.17 | 0.19 | 0.17 |
| Quick Ratio | 0.16 | 0.16 | 0.15 | 0.16 | 0.35 | 0.47 | 0.92 | 0.13 | 0.15 | 0.16 | 0.14 |
| Cash Ratio | 0.08 | 0.08 | 0.04 | 0.05 | 0.23 | 0.37 | 0.81 | 0.03 | 0.04 | 0.02 | 0.03 |
| Asset Turnover | — | 0.43 | 0.44 | 0.40 | 0.26 | 0.05 | 0.07 | 0.36 | 0.34 | 0.39 | 0.38 |
| Inventory Turnover | 36.12 | 36.12 | 32.65 | 31.35 | 29.54 | 18.23 | 23.29 | 37.40 | 34.27 | 43.96 | 43.96 |
| Days Sales Outstanding | — | 6.45 | 8.21 | 10.63 | 21.92 | 97.22 | 46.95 | 10.19 | 12.48 | 13.25 | 12.54 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.4% | 0.3% | 0.2% | — | — | — | 2.0% | 2.2% | 2.5% | 1.7% | 2.0% |
| Payout Ratio | 6.2% | 6.2% | 3.7% | — | — | — | — | 32.1% | 29.1% | 26.9% | 27.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.8% | 5.6% | 4.7% | 4.9% | — | — | — | 6.7% | 8.8% | 6.3% | 7.2% |
| FCF Yield | 2.0% | 1.6% | 3.1% | 1.6% | — | — | — | 2.5% | — | 9.0% | 0.1% |
| Buyback Yield | 1.9% | 1.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.4% | 2.8% | 0.9% | 1.7% |
| Total Shareholder Yield | 2.3% | 1.9% | 0.2% | 0.0% | 0.0% | 0.0% | 2.0% | 2.5% | 5.3% | 2.6% | 3.6% |
| Shares Outstanding | — | $273M | $279M | $283M | $255M | $252M | $214M | $210M | $212M | $216M | $216M |
Includes 30+ ratios · 30 years · Updated daily
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10-year return with dividends reinvested.
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Quick answers to the most common questions about buying RCL stock.
Royal Caribbean Cruises Ltd.'s current P/E ratio is 14.8x. The historical average is 17.8x. This places it at the 38th percentile of its historical range.
Royal Caribbean Cruises Ltd.'s current EV/EBITDA is 12.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.1x.
Royal Caribbean Cruises Ltd.'s return on equity (ROE) is 47.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 6.6%.
Based on historical data, Royal Caribbean Cruises Ltd. is trading at a P/E of 14.8x. This is at the 38th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Royal Caribbean Cruises Ltd.'s current dividend yield is 0.42% with a payout ratio of 6.2%.
Royal Caribbean Cruises Ltd. has 46.8% gross margin and 27.4% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Royal Caribbean Cruises Ltd.'s Debt/EBITDA ratio is 3.5x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Leverage discrepancy and EPS miss
Metrics are mathematically derived from official filings.
Margins Resilient Despite Cost Pressures
Gross margin held at 47.3% in Q2 2026, above the TTM average of 46.84%, while operating margin slipped to 27.0% from 29.3% a year earlier, as per reported financials, indicating pricing power but rising overhead.
The sequential decline in gross margin from 49.5% in Q1 2026 to 47.3% in Q2 2026 suggests fuel and provisioning costs are biting, yet the level remains historically healthy. Operating margin compression is more pronounced, with SG&A rising to 10.7% of revenue, implying that fixed-cost leverage is fading as the company scales. Net margin of 23.3% in Q2 2026 is still robust, but the EPS miss of $2.11 versus estimates, as per the earnings report, hints that cost pressures may be intensifying. Investors should monitor whether the raised forward guidance of $6.26–$6.36 reflects genuine demand or a lower-quality earnings mix.
ROIC Recovery Stalls at Low Levels
ROIC improved to 3.0% in Q2 2026 from 2.1% a year ago, as per financial statements, but remains far below the cost of capital, reflecting the heavy asset base and early-stage recovery.
Despite strong net margins, ROIC is constrained by an asset turnover of just 0.11, underscoring the capital intensity of the cruise model. The sequential improvement from 2.2% in Q4 2025 to 3.0% in Q2 2026 is encouraging, but the absolute level is insufficient to cover the weighted average cost of capital, which is likely in the high single digits. ROE of 11.0% in Q2 2026 is flattered by leverage, as equity has rebuilt to $10.2B, but the underlying return on invested capital suggests value creation is still nascent. The gap between ROE and ROIC highlights the reliance on debt to amplify returns, a dynamic that warrants close monitoring as interest costs rise.
Working Capital Efficiency Shows Strength
Cash conversion cycle improved to -19 days in Q2 2026, as per reported data, driven by negative DSO and DIO, indicating RCL collects cash from bookings well before paying suppliers, a structural advantage.
The negative CCC of -19 days is a testament to the company's ability to fund operations with customer deposits, which act as an interest-free loan. DSO of 9 days and DIO of 10 days are exceptionally low, reflecting the prepaid nature of cruise bookings and minimal inventory. DPO of 38 days extends payables, further enhancing the float. This efficiency is a key mitigant to the thin liquidity position, as the current ratio of 0.21 is misleadingly low given the substantial deferred revenue liability. The working capital model provides a buffer against cash flow volatility, but it is dependent on sustained booking momentum.
Leverage Trends Down but Remains Elevated
Debt-to-equity improved to 2.25 in Q2 2026 from 3.98 a year earlier, as per balance sheet data, while interest coverage rose to 5.87, indicating a more comfortable debt service position.
The deleveraging is driven by equity growth from retained earnings, which surged to $7.2B, rather than absolute debt reduction, as total debt stands at $23.5B. Interest coverage of 5.87 is up from 1.86 in Q1 2024, suggesting that operating income is now more than sufficient to cover interest expense. However, the reported D/E of 2.25 appears plausible but may understate true leverage if off-balance-sheet obligations such as operating leases and shipyard commitments are considered. The forward EV/EBITDA of 180.21 is anomalous and likely a data artifact, but it underscores the market's sensitivity to EBITDA volatility. Investors should monitor the maturity wall and refinancing risk, especially if interest rates remain elevated.
Liquidity Thin but Backed by Bookings
Current ratio of 0.21 in Q2 2026, as per balance sheet data, indicates a severe liquidity constraint, yet deferred revenue of $6.7B provides a substantial buffer against near-term obligations.
The current ratio is among the lowest in the industry, reflecting the high proportion of long-term assets and the reliance on short-term customer deposits. Quick ratio of 0.19 underscores the lack of liquid assets, but the negative CCC and strong advance bookings mitigate the risk of a cash crunch. Cash of $875M is modest relative to the $23.5B debt load, but the company's ability to generate operating cash flow, which exceeded net income in every quarter, provides a cushion. Under a severe demand shock, the thin liquidity position could become a vulnerability, but the current booking strength suggests near-term stability.
Misapplied Metric: Debt-to-Equity
The most commonly misapplied ratio for RCL is debt-to-equity, as per industry analysis, because it ignores off-balance-sheet obligations and the lumpy nature of shipbuilding commitments, understating true leverage.
For a cruise line, D/E fails to capture operating leases, shipyard contracts, and the cyclicality of EBITDA, which can swing dramatically with occupancy. A more appropriate measure is net debt to EBITDA or net debt to total capitalization, which better reflects the company's ability to service debt from cash flows. The reported D/E of 2.25 appears low relative to peers like NCLH at 6.61, but this may be misleading given the capital-intensive nature of the business. Investors should focus on interest coverage and the maturity schedule rather than a static balance sheet ratio, as the true risk lies in the company's ability to refinance and generate cash flow through the cycle.