Carnival Corporation (CCL)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	14,712,000	14,318,000	14,354,000	13,812,000	13,038,000	11,757,000	10,212,000	8,449,000	6,447,000	4,952,000	3,458,000	3,391,000	5,194,000	8,182,000	10,632,000	12,615,000	13,290,000	12,909,000	12,574,000	12,000,000
Inventory	US$ in thousands	531,000	528,000	483,000	438,000	448,000	428,000	420,000	425,000	392,000	356,000	322,000	308,000	312,000	335,000	349,000	362,000	440,000	427,000	482,000	501,000
Inventory turnover		27.71	27.12	29.72	31.53	29.10	27.47	24.31	19.88	16.45	13.91	10.74	11.01	16.65	24.42	30.46	34.85	30.20	30.23	26.09	23.95

February 29, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $14,712,000K ÷ $531,000K
= 27.71

Carnival Corporation's inventory turnover has shown a fluctuating trend over the past few years. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times inventory is sold and replaced within a specific period.

From February 2022 to November 2023, there was a general upward trend in inventory turnover, peaking at 31.53 in May 2023. This indicates that the company was able to sell and replace its inventory more frequently during this period.

However, from November 2023 to February 2024, there was a slight decline in the inventory turnover ratio. Despite this slight decrease, the ratio still remained relatively high at 27.71 in February 2024, suggesting that Carnival Corporation continued to efficiently manage its inventory during this period.

Overall, the inventory turnover ratios for Carnival Corporation indicate that the company has been effective in managing its inventory levels and converting them into sales efficiently. It is important for the company to maintain a balance between managing inventory levels to meet customer demand while also minimizing carrying costs.