Royal Caribbean Cruises Ltd. (Financial Summary Analysis Of Royal Caribbean)

Financial Summary Analysis Of Royal Caribbean
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Table of Contents
 TOC \o "1-3" \h \z \u HYPERLINK \l "_Toc370045581"Abstract  PAGEREF _Toc370045581 \h
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HYPERLINK \l "_Toc370045582"Introduction  PAGEREF _Toc370045582 \h
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HYPERLINK \l "_Toc370045583"Background  PAGEREF _Toc370045583 \h
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HYPERLINK \l "_Toc370045584"Mission Statement  PAGEREF _Toc370045584 \h
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HYPERLINK \l "_Toc370045585"International Environment  PAGEREF _Toc370045585 \h
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HYPERLINK \l "_Toc370045586"The Management Report  PAGEREF _Toc370045586 \h
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HYPERLINK \l "_Toc370045587"References  PAGEREF _Toc370045587 \h
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Abstract
Operating a cruise-based business is not an easy task because it takes competent persons with great business planning strategies to establish, maintain and develop it. This project involves discovering and viewing the Royal Caribbean Cruises Ltd via a financial evaluation. Some assessment was made through financial analysis of the entire company that is complex. The evaluation looks into a descriptive analysis of the complete summary that elaborates on the financial statements of the company and its potential in the market. Moreover, the SWOT assessment identifies the viability of the company as well as the means that the management applies to ensure that the financial statements are reliable and valid. A thorough study of data also presents a rationale of the financial conditions of Royal Caribbean Cruises. The company’s background reviews on the efforts made and the opportunities ceased after a certain period of time as well as the potential threats subjected to it. The reviews on financial ratios and data, among others, bring comprehensive and contenting the information for the discovery of financial status of the company, which would be helpful for future reference.
Introduction
The cruise line industry, which is also known as deep-sea transportation, was founded when people began to board overnight cruises around the early nineteen seventies, after which the demand rose immensely. The current cruise industries include companies that possess combined yearly revenue that exceeds thirteen billion dollars. One of the major companies that are on the lead in the deep sea cruise section includes the Royal Caribbean Cruises Limited, which is the second world’s largest cruise operator in terms of the number of ships. The company operates a sum of forty-one ships worldwide and it has a selection of itineraries, which call on around four hundred and sixty destinations globally(Investor Relations, 2012). The Royal Caribbean additionally operates its ships via the brand names of Pullmantur, Royal Caribbean International, Celebrity cruises, CDF Croisieres de France as well as Azamara Cruises and this combines to control a rate of twenty-three point eight percent of the cruise market in the entire world. It is considered very essential to identify and categorically analyze the trends of the company through evaluation of financial summary as well as including the necessary recommendations that may concern it.
The development of the company from a humble beginning into a complex income generating company has been tremendous. The financial reports have varied with these developments and upgrading of the cruise services among other services that have boosted the company a great deal. This is a study intended to be thorough in elaborating the analysis of the Strengths Weaknesses and Opportunities and Threats involved within the company and its viability, describing a personal review of the financial ratios, data, as well as opinion concerning the financial conditions of the corporations supported by a rationale. The company contains numerous financial statements whose comparisons will enable to know the status of the company(Institute of Management Accountants, 1999). The research will assist in accessing the entire financial status of the company, offering the directives on the approach towards identifying the financial status of various business and the potential threats likely to occur.
Background
The Royal Caribbean was founded in the year nineteen sixty-eight rolling out the innovative ships around the years of nineteen eighties. The company created its first exclusive destination around the year nineteen eighty-six, on the north coast of Hispaniola, before developing a private island of Coco Cay in the locations of Bahamas four years later. This development has been progressive as years pass, turning the company’s offers into the best choices of the prominent business people, vacation lovers, and educational trip students among other groups of people. Being the second largest cruise company in the whole world, Royal Caribbean Cruises Ltd provides distinctive vacations of land-tour in places such as Asia, Alaska, Canada, Australia, Europe as well as South Africa among other regions. The ships, which are not less than forty-one and involved in six brands, provide an extensive collection of services, activities as well as amenities (Plunkett, 2007, p. 34). These includes the swimming pools, simulated surfing, beauty salons, sun decks, spa and exercise facilities, ice skating rinks, in-line skating, rock climbing walls, gaming facilities, miniature golf courses, lounges, Las-Vegas-Style entertainment, bars, and Royal Promenades, among others. Since the year nineteen eighty, the industry has experienced average passenger growth that ranges around seven point five percent. The Royal Caribbean is still enjoying tremendous growth even today.
Mission Statement
A mission statement is a short and precise phrase that organizations use in declaring the kind of business such organizations are in, the kinds of people it serves, and the way it achieves that in a distinct manner. The Mission statements can assist in focusing the organization on the things that really matters within it and its stakeholders. The mission statements are significant to all kinds of organizations whether it is public or private or even the others. One of the most important functions of a mission statement is that it strategically guides towards daily operational decisions. Moreover, it helps in gluing and binding the organization as the focus of the entire organization is based on it (Armstrong, 2006, p. 22). The mission of the Royal Caribbean Cruises is creating happy and contented guests, happy employees as well as happy shareholders, which they term as a joyful task. This mission statement is appropriate for the Royal Caribbean because the growing numbers of passengers shows their contentment with the services provided, while its development indicates contented employees that work diligently. Moreover, the mission statement seems to be effective as it acts as a guide to the company, and would not be suitable to adjust or alter anything that is indicated.
International Environment
The international environment consists of Board of Directors, employees as well as the corporate culture as explained below.
Board of Directors
The board of directors is usually elected to act as envoys of the stockholders in order to set up corporate management that relates to policies as well as making decisions on major issues of the organization. The kind of issues they decide includes sacking or hiring certain executives, executive compensation, dividend policies, as well as option policies. The kinds of people best suited for being elected as Board of Directors should have good qualities. One of the qualities is commitment or having real openness to commitment to the purpose of the organization. In addition, one must have common sense as well as its common asset together with good judgment, which is helpful when it comes to making the right decisions. A good director of the Board in an organization must show or reflect respect for the processes of the group, desiring to work within and with the groups. It is also advisable to elect people that have centeredness in the sense that they have personal self-awareness as well as acceptance (Vinnicombe, 2008, p. 28). The people with the trait of openness h...