Carnival Corporation (CCL)

Days of sales outstanding (DSO)

		Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020
Receivables turnover		41.47	37.13	44.20	31.72	34.92	36.86	34.53	25.68	26.73	21.70	12.47	9.34	5.14	2.33	0.64	2.59	19.62	26.74	27.33	51.19
DSO	days	8.80	9.83	8.26	11.51	10.45	9.90	10.57	14.22	13.65	16.82	29.28	39.09	71.04	156.83	572.45	140.82	18.60	13.65	13.36	7.13

November 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 41.47
= 8.80

The Days of Sales Outstanding (DSO) for Carnival Corporation have exhibited fluctuations over the years, reflecting changes in the company's accounts receivable collection efficiency. The DSO metric indicates the average number of days it takes for the company to collect payments from its customers.

From February 2020 to May 2021, there was a concerning trend of increasing DSO, reaching a peak of 572.45 days in May 2021. This significant spike may suggest potential issues with collections or credit terms during this period. However, the DSO improved substantially by August 2022, declining to 16.82 days, which indicates a positive shift towards more efficient accounts receivable management.

Subsequently, the DSO continued to decrease, stabilizing around 9-11 days from November 2023 onwards. This improvement signifies enhanced collection practices and potential adjustments to credit policies, leading to faster cash conversion from sales.

Overall, monitoring the DSO trend is crucial for Carnival Corporation to assess its effectiveness in managing accounts receivable and maintaining healthy cash flows. The company's ability to efficiently collect payments from customers is essential for sustaining financial stability and liquidity.