Is the business good?
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.
13%
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
- −0.10×
Cash conversion · 1.00× a year ago · some of the reported profit has not turned into cash yet
- 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 from the cash flow statement.
Travel Services
Ranks #5 of 11 by Smart Score