Carnival Corporation (CCL)

Days of sales outstanding (DSO)

		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	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Receivables turnover		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	46.44	46.13	48.64
DSO	days	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	7.86	7.91	7.50

February 29, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 31.72
= 11.51

The Days of Sales Outstanding (DSO) is a financial ratio that measures the average number of days it takes for a company to collect revenue after a sale has been made. By analyzing the DSO trend of Carnival Corporation over time, we can gain insights into the company's efficiency in managing its accounts receivable.

Looking at the data provided, we observe fluctuations in Carnival Corporation's DSO over the past few years. The DSO has varied significantly, from a high of 572.45 days in November 2021 to a low of 7.13 days in February 2020.

In recent periods, there seems to be an improvement in the DSO, with values decreasing from 14.22 days in February 2023 to 10.45 days in November 2023. This decline indicates that Carnival Corporation has been able to collect its receivables more efficiently compared to previous periods.

However, it is worth noting the high DSO values in the past, particularly in November 2021 and August 2021, which were considerably above industry averages. These elevated DSO figures may suggest challenges in the company's accounts receivable management or potential issues with customer creditworthiness.

Overall, monitoring Carnival Corporation's DSO trend is crucial for assessing the company's ability to convert sales into cash and effectively manage its working capital. The recent improvements in DSO indicate efforts towards enhancing receivables management, but attention should be given to historical peaks to ensure sustainable and efficient collections practices in the future.