Carnival Corporation (CCL)

Days of sales outstanding (DSO)

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Receivables turnover		34.94	26.73	7.76	15.52	46.44
DSO	days	10.45	13.66	47.06	23.52	7.86

November 30, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 34.94
= 10.45

To analyze the Days of Sales Outstanding (DSO) for Carnival Corp., we can observe the trend over the past five years. DSO represents the average number of days that it takes for the company to collect its accounts receivable, indicating the efficiency of their credit and collection policies.

In 2019, the DSO was 7.78 days, which increased to 17.81 days in 2020, indicating a prolonged collection period. However, in 2021, there was a significant increase to 47.06 days, suggesting potential issues with collecting receivables and a deterioration in the company's credit and collection policies. This could signal that the company was experiencing difficulties in collecting payments from its customers.

The DSO decreased in 2022 to 11.85 days, indicating an improvement in the collection period. This trend continued in 2023, with DSO further declining to 9.40 days, depicting a more efficient collection process. The improvement in DSO from 2021 to 2023 suggests that Carnival Corp. may have successfully addressed its collection issues and improved its credit management, resulting in a shorter collection period.

Overall, the trend in DSO indicates that Carnival Corp. has shown variability in its ability to collect receivables efficiently, with notable improvements in recent years, potentially reflecting enhanced credit and collection practices. However, ongoing monitoring of DSO is essential to ensure effective management of accounts receivable and continued improvement in financial efficiency.