A Note On Royal Caribbean Cruises Ltd’s (NYSE:RCL) ROE and Debt To Equity – Simply Wall St News

One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business.
We’ll use ROE to examine Royal Caribbean Cruises Ltd (NYSE:RCL), by way of a worked example.

Royal Caribbean Cruises has a ROE of 15%, based on the last twelve months.
One way to conceptualize this, is that for each $1 of shareholders’ equity it has, the company made $0.15 in profit.

Check out our latest analysis for Royal Caribbean Cruises

How Do You Calculate Return On Equity?

The formula for ROE is:

Return on Equity = Net Profit ÷ Shareholders’ Equity

Or for Royal Caribbean Cruises:

15% = US$1.8b ÷ US$11.9b (Based on the trailing twelve months to September…

Read More

  • 1