Carnival Corporation (CCL)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	15,639,000	15,435,000	15,053,000	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
Inventory	US$ in thousands	507,000	492,000	509,000	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
Inventory turnover		30.85	31.37	29.57	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

November 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $15,639,000K ÷ $507,000K
= 30.85

Inventory turnover is a crucial financial ratio that measures how efficiently a company manages its inventory. For Carnival Corporation, the inventory turnover has shown fluctuations over the past few years. The data reveals that the inventory turnover ratio ranged from a high of 34.85 on May 31, 2020, to a low of 10.74 on August 31, 2021.

A higher inventory turnover indicates that the company is selling its inventory quickly, which is generally seen as a positive sign of operational efficiency. On the other hand, a lower turnover may imply either overstocking or slow sales, which can tie up capital and lead to potential obsolescence risks.

Analyzing the trend, we observe a general decreasing trend in inventory turnover from May 2021 to November 2023, indicating a potential issue with inventory management during this period. However, starting from February 2024, the inventory turnover showed signs of improvement, suggesting that Carnival Corporation may have taken steps to enhance its inventory efficiency.

Overall, it is essential for Carnival Corporation to monitor its inventory turnover regularly to ensure optimal inventory management, streamline operations, and maximize profitability.