Royal Caribbean Cruises Ltd. — Earnings Quality Grade F
RCL · Consumer Cyclical
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 6 days, change -2 days YoY
AR growth -14.6% vs revenue growth 8.8%
Revenue 8.8%, CFFO 22.8%. Cash follows revenue
Expense Quality
Inventory -0.4% vs COGS 5.0%. Normal
CapEx growth 60.0% is >2x revenue growth 8.8%
SG&A/Gross Profit = 25.1%, excellent (<30%)
Gross margin 49.4%, change +1.8pp. Stable
Cash Flow Quality
CFFO/NI = 1.51. Profits backed by cash
FCF < 50% of Net Income for 2 years
Accruals ratio = -5.3%. Low accruals
Cash $0.8B covers only 4% of debt $22.0B
Balance Sheet Health
Goodwill+Intangibles $0.8B = 8% of equity. Manageable
Debt/EBITDA = 3.1x. Healthy
Other assets 11.5% vs revenue 8.8%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 0% YoY. Normal
Manipulation Score
M-Score = -2.85 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10