RCLRoyal Caribbean Group
Is the business good?
The checks split: 7 of 9 health tests passed and earnings fully cash-backed (1.7×), but returns that lean on debt.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 43% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is RCL?
Royal Caribbean Group earns 13% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 3.5 points above what the capital costs: growth creates value
- Operating margin
- 27%
Operating margin · Travel Services median 16% · 12 months to Q2 2026
- Cash conversion
- 1.68×
Cash conversion · 1.60× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −2.5%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −208% |
| FY2021 | −253% |
| FY2022 | −8.7% |
| FY2023 | 21% |
| FY2024 | 25% |
| FY2025 | 27% |
Details›
- Gross margin12 months to Q2 2026
- 49%
- Operating margin12 months to Q2 2026
- 27%
- Net margin12 months to Q2 2026
- 24%
- Free cash flow margin
- −2.2%
- Revenue, trailing twelve months
- $18.7B
- Free cash flow, trailing twelve months
- −$416M
- Net income, trailing twelve months
- $4.40B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 13%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from RCL and who it buys from, as the companies report it.
None disclosed.
- OSWOneSpaWorld Holdings Limited28%
RCL is 28% of its revenue · FY2025 10-K
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; RCL’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported.
Travel Services
The closest names by size in the same industry