Analysis of Financial Statements2IntroductionThe cruise industry is a solid market that is expected to keep growing in the next years. Since the day of transoceanic transportation, the industry has undergone several significant changes, from being exclusive to society’s elite to being a reasonably affordable vacation option. It also represents a major part of the tourism sector, reaching significant levels of importance as an economic factor, because of the fact that the industry represents one of the most outstanding examples of globalization. Cruise Market Watch expects more than 25 million passengers worldwide to take a cruise this year. Two of the cruise lines that help and keep the industry solid-growth steady are Carnival Cruise Lines and Royal Caribbean International. They are two of the top cruise lines brands, having more than 40 years of experience in the industry and have developed loyal clients, as alsoa relevant brand image. Both compete hard and react to what the other cruise lines do, trying to be more prolific in their operations, getting this way a bigger market share. Royal Caribbean International is estimated to serve around 25% of all passenger worldwide, while Carnival CruiseLines serves about 50% of the market.This is a report that includes an analysis of each company’s individual financial ratios, which will be useful for getting an insight into their profitability, solvency, efficiency, and financial risks, being crucial for investors’ decision making and choices.Quantitative, Cross-Sectional, and Time-Series AnalysisIn this section, the financial ratios are analyzed and interpreted, being quantified and analyzed through the period studied.Profitability AnalysisReturn On Assets and DuPont ROARoyal CaribbeanCarnival201720162015201720162015Return on Assets6,08%4,63%1,93%6,06%6,55%3,93%DuPont ROA6,08%4,63%1,93%6,06%6,55%3,93%The return on assets (ROA) ratio is used for analyzing how well or bad a firm is using its assets to generate earnings, independent of financing, meaning how profitable the company is relative to its total assets.