Debt-to-Equity Ratio
Higher than 85% of Consumer Cyclical sector peers
Updated 24h ago
Sector Performance
85th percentileRCL
2.22x
Sector Median
0.77x
Sector Avg
2.56x
Deep Analysis
Royal Caribbean's debt-to-equity ratio of 2.22x means the company uses $2.22 of debt for every $1 of shareholders' equity, indicating a higher reliance on borrowing to fund operations than typical in its sector.
That figure sits well above the sector median of 0.77x, placing Royal Caribbean in the 85th percentile among consumer cyclical peers—meaning only 15% of competitors carry more debt relative to equity. The year-over-year and quarter-over-quarter changes are not available, so no trend direction can be assessed from the data provided. The combination of a high debt level with no trend information points to elevated financial leverage, which increases risk if cash flows weaken, but offers no clear signal of improvement or deterioration. This metric supports the overall NEUTRAL verdict, as the elevated leverage introduces caution, yet the absence of trend data prevents a more bearish stance.
Frequently Asked Questions
What does the Debt-to-Equity Ratio tell investors about RCL?
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
How is the Debt-to-Equity Ratio calculated?
Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.
How does RCL's Debt-to-Equity Ratio compare to its sector?
RCL's Debt-to-Equity Ratio of 2.22x compares to a Consumer Cyclical sector median of 0.77x, placing it in the 85th percentile.
Who are RCL's closest peers by Debt-to-Equity Ratio?
The closest Consumer Cyclical peers by Debt-to-Equity Ratio include: ABNB (0.33x), MELI (0.33x), EVGO (0.32x), COLM (0.30x), SE (0.28x).
The Formula
Total Debt / Shareholders' Equity
Why It Matters
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
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2.22x
Sector Median
0.77x
Sector Avg
2.56x
How RCL's Debt-to-Equity Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.