Company Analysis of Royal Caribbean Cruise Ltd

Fall Trimester Project: Company Analysis of Royal Caribbean Cruise Ltd
Name
Hodges University
MNA4325
Professor Harbour
Due
Submitted

Abstract
This paper analyzes the financial and non financial information of Royal Caribbean Cruise Ltd with a view of giving a recommendation on the significance of investing in the company’s stock. The paper begins by looking at the external environment surrounding the cruise ship business environment and leisure industry as it pertains to the company. To further get more information on the company, it is necessary to highlight on financial information about company obtained from msn.com and other related literature. Financial information and ratios provide a framework through which to analyze the company through comparing with industry average and that of Carnival Corporation, the leading cruise ship company in the leisure industry. The company’s non financial information also provided ways through which to assess the company’s performance. Based on the company’s financial performance and corporate social responsibility, investing in the company’s stock is worthwhile.
External Environment
The Royal Caribbean Cruise Ltd is a Norwegian American company operating cruise ships, and has been in operations since 1968. The Royal Caribbean Cruise operates 40 ships, and is second behind Carnival (CCL) in the cruise operator industry (wiki invest, 2013). Other than Carnival Corporation & PLC being the main competitor, cruise ships also compete with vacation alternatives in the leisure industry. These include: resort hotels on land and companies offering sightseeing services. However, the demand for leisure activities is dependent on the political and economic situations prevailing and consumer spending habits. Despite the opportunities the industry has uncertainties even with the launch of bigger ships (Esterl, 2009).The Royal Caribbean Cruise Ltd was formally incorpor...