Carnival Corporation (CCL)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	24,470,000	23,464,000	21,836,000	20,426,000	19,417,000	17,876,000	15,504,000	13,197,000	10,559,000	7,812,000	4,475,000	2,493,000	1,264,000	654,000	139,000	648,000	5,356,000	10,056,000	16,506,000	20,732,000
Property, plant and equipment	US$ in thousands	41,795,000	42,380,000	42,105,000	41,515,000	40,116,000	39,952,000	39,584,000	39,359,000	38,687,000	38,137,000	39,262,000	40,183,000	38,107,000	38,917,000	39,499,000	39,583,000	38,073,000	36,926,000	37,139,000	38,023,000
Fixed asset turnover		0.59	0.55	0.52	0.49	0.48	0.45	0.39	0.34	0.27	0.20	0.11	0.06	0.03	0.02	0.00	0.02	0.14	0.27	0.44	0.55

November 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $24,470,000K ÷ $41,795,000K
= 0.59

The fixed asset turnover ratio measures the efficiency with which a company generates sales revenue from its investment in fixed assets. A higher ratio indicates better utilization of fixed assets to generate revenue.

Looking at the data provided for Carnival Corporation, we can see a significant decline in the fixed asset turnover ratio from February 29, 2020, to November 30, 2021, with the ratio dropping gradually from 0.55 to a low of 0.03. This indicates a decrease in the company's ability to generate sales from its fixed assets during this period.

However, starting from February 28, 2022, there is a noticeable improvement in the fixed asset turnover ratio, showing a consistent increase from 0.06 to 0.59 by November 30, 2024. This upward trend suggests that Carnival Corporation has been able to enhance the efficiency of its fixed asset utilization and generate more revenue from its fixed assets.

Overall, the analysis indicates a recovery and improvement in Carnival Corporation's fixed asset turnover ratio after a period of decline, showing a positive trend in the company's ability to generate sales from its fixed assets in the recent quarters.