Debt-to-Equity Ratio

Royal Caribbean’s debt-to-equity ratio of 2.15x means that for every dollar of shareholder equity, the company has $2.15 in debt, indicating it relies heavily on borrowed money to fund operations.

This is far above the consumer cyclical sector median of 0.74x, placing Royal Caribbean in the 85th percentile, meaning it carries more debt than 85% of its industry peers. The year-over-year and quarter-over-quarter changes are not available, and the trend over the last eight quarters is also not reported, so we cannot assess whether leverage is rising or falling. The combination of a high leverage level with no trend data suggests elevated financial risk—if earnings falter, servicing this debt becomes harder—but also leaves ambiguity about whether the company is improving its balance sheet. This metric contradicts a neutral investment verdict because the high relative debt points to above-average risk, while a lack of trend information prevents confirming whether that risk is being addressed. The overall neutral stance may reflect other positive factors, but from a debt perspective alone, Royal Caribbean appears riskier than its sector median suggests.

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