The cruise industry is in real trouble.

Mainly the way they have handled their finances.

They are well run companies but they have made the major mistake of spending deposits they don't have.
Here is an example form this report.

User Posted Link

The telling paragraph from the report is.

If we look at the most recent 10-K, we can see that RCL only had $234.7 MM in cash available while current liabilities that need to paid in cash soon was is about $4.4 B. Cruise liners typically fund their working capital needs through both commercial paper and deferred revenue or customer deposits. As can be seen, as of the 10-K, the majority of the customer deposits have been spent, hence the low amount of cash on the balance sheet.

Basically it breaks down to around 3 Billion in deposits (Future cruises already paid for or partially paid for) with only 230 Million on hand.....
The scary thing is they are currently fobbing customers off with huge wait times to get their money back, which they barely have if you include their revolving credit lines. They are going to need huge cash infusions.

Posted By: usacanary on April 19th 2020 at 23:21:33

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