Carnival Corporation (CCL)

Working capital 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
Total current assets	US$ in thousands	3,378,000	3,626,000	3,768,000	4,484,000	5,266,000	4,683,000	6,206,000	7,144,000	7,492,000	8,432,000	8,554,000	8,057,000	10,133,000	8,909,000	10,198,000	12,459,000	10,563,000	9,268,000	8,222,000	2,885,000
Total current liabilities	US$ in thousands	11,617,000	12,265,000	13,385,000	12,396,000	11,481,000	11,008,000	11,835,000	11,088,000	10,605,000	12,954,000	13,380,000	10,920,000	10,408,000	9,491,000	8,754,000	8,619,000	8,686,000	10,184,000	11,858,000	10,716,000
Working capital turnover		—	—	—	—	—	—	—	—	—	—	—	—	—	—	0.10	0.17	2.85	—	—	—

November 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $24,470,000K ÷ ($3,378,000K – $11,617,000K)
= —

The working capital turnover ratio is a measure of how efficiently a company is utilizing its working capital to generate sales revenue. In the case of Carnival Corporation, the working capital turnover ratios for the specified periods are as follows:

- November 30, 2020: 2.85
- February 28, 2021: 0.17
- May 31, 2021: 0.10

The working capital turnover was not provided for the remaining periods up to November 30, 2024.

The significant drop in the working capital turnover ratio from 2.85 in November 2020 to 0.17 in February 2021 and 0.10 in May 2021 may indicate inefficiency in converting working capital into sales during those periods. A lower ratio suggests that the company is not effectively using its working capital to generate revenue.

It is important to monitor the working capital turnover ratio over time to assess the company's ability to efficiently manage its working capital and generate sales. Ideally, a higher ratio signifies better efficiency in utilizing working capital to generate revenue, while a declining ratio may indicate potential operational challenges or inefficiencies in the company's cash flow management.