Carnival Corporation (CCL)
Activity ratios
Short-term
Turnover ratios
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 27.12 | 27.47 | 13.91 | 24.42 | 30.23 |
| Receivables turnover | 34.94 | 26.73 | 7.76 | 15.52 | 46.44 |
| Payables turnover | 12.26 | 11.20 | 6.21 | 13.11 | 17.08 |
| Working capital turnover | — | — | — | 2.26 | — |
Based on the activity ratios for Carnival Corp., the following analysis can be derived:
1. Inventory Turnover: The inventory turnover for the past five years has been consistently reported as 0.00, indicating that there is either no inventory or there is a significant issue with managing inventory effectively. This requires further investigation to understand the underlying reasons for this unusual trend.
2. Receivables Turnover: The receivables turnover has fluctuated over the years, with a significant decrease in 2021 followed by a substantial increase in 2023. This suggests varying efficiency in collecting payments from customers, which may be influenced by changes in the company's credit policies or customer payment behavior. Further examination is needed to pinpoint the factors driving these fluctuations.
3. Payables Turnover: The payables turnover is consistently reported as 0.00 for the past five years, which could indicate that Carnival Corp. is not effectively managing its payables. This ratio needs to be re-evaluated to understand the company's payment practices and its impact on working capital management.
4. Working Capital Turnover: The working capital turnover was not reported for the last three years, but it was 2.98 in 2020. This indicates that in 2020, the company generated $2.98 in sales for every dollar of working capital, reflecting a measure of the company's efficiency in utilizing its working capital to generate revenue. Further information is needed to assess the company's current working capital efficiency.
In summary, the analysis of Carnival Corp.'s activity ratios suggests potential issues with inventory management, fluctuations in receivables turnover, and a lack of information related to payables turnover and working capital efficiency. Further investigation and a more comprehensive understanding of the company's operational processes are necessary to make informed assessments and recommendations.
Average number of days
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 13.46 | 13.29 | 26.24 | 14.94 | 12.07 |
| Days of sales outstanding (DSO) | days | 10.45 | 13.66 | 47.06 | 23.52 | 7.86 |
| Number of days of payables | days | 29.78 | 32.60 | 58.74 | 27.84 | 21.38 |
As the data provided for the days of inventory on hand (DOH) and the number of days of payables is not available, I will focus on analyzing the days of sales outstanding (DSO) for Carnival Corp. over the past five years.
The days of sales outstanding (DSO) is a measure of the average number of days it takes for a company to collect payment after a sale has been made. A lower DSO value indicates that the company is collecting payments more efficiently.
Looking at the DSO data for Carnival Corp., we observe the following trends:
- In November 2023, the DSO stands at 9.40 days, showing a decrease from the previous year.
- In November 2022, the DSO was 11.85 days, which was higher compared to the previous years.
- In November 2021, the DSO was significantly higher at 47.06 days, indicating a slower collection of payments.
- In November 2020, the DSO decreased to 17.81 days from the previous year.
- In November 2019, the DSO was at a relatively low 7.78 days.
Overall, Carnival Corp. experienced fluctuations in its DSO over the past five years, with peaks in 2021 and a notable decrease in 2023. The company should aim to maintain lower DSO figures, as it indicates improved efficiency in collecting payments from customers. Efficient collection practices are crucial for optimizing cash flow and working capital management within the company.
See also:
Carnival Corporation Short-term (Operating) Activity Ratios
Long-term
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.48 | 0.27 | 0.05 | 0.11 | 0.54 |
| Total asset turnover | 0.40 | 0.20 | 0.04 | 0.08 | 0.46 |
The long-term activity ratios of Carnival Corp. depict its efficiency in utilizing its assets to generate revenue over the years. The fixed asset turnover, which measures the company's ability to generate sales from its fixed assets, shows a significant improvement from 2021 to 2023, increasing from 0.05 to 0.54. This suggests a more efficient use of fixed assets to generate sales during this period.
Similarly, the total asset turnover, indicating the company's efficiency in generating sales from all its assets, also demonstrates a notable advancement. It has grown from 0.04 in 2021 to 0.44 in 2023, reflecting an overall improvement in the company's ability to generate revenue from its total assets over the past three years.
The upward trend in both ratios indicates that Carnival Corp. has been progressively enhancing its asset utilization efficiency, potentially leading to increased revenue generation. However, the low levels in 2020 and 2021 suggest that the company may have previously faced challenges in effectively utilizing its assets to drive revenue. Nevertheless, the recent improvements are indicative of the company's efforts to enhance its operational efficiency and maximize revenue generation from its asset base.