Carnival Corporation (CCL)

Cash conversion cycle

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Days of inventory on hand (DOH)	days	13.46	13.29	26.24	14.94	12.07
Days of sales outstanding (DSO)	days	10.45	13.66	47.06	23.52	7.86
Number of days of payables	days	29.78	32.60	58.74	27.84	21.38
Cash conversion cycle	days	-5.87	-5.65	14.55	10.63	-1.44

November 30, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 13.46 + 10.45 – 29.78
= -5.87

The cash conversion cycle of Carnival Corp. has fluctuated over the past five years. In 2023, the company's cash conversion cycle decreased to 9.40 days from 11.85 days in 2022, indicating an improvement in its ability to convert its investments in inventory and receivables into cash. This is a positive trend compared to 2021 when the cash conversion cycle was significantly higher at 47.06 days. The company managed to reduce the cycle time, which suggests a more efficient management of working capital during this period. In 2020, there was a slight increase in the cash conversion cycle to 17.81 days from 7.78 days in 2019, possibly indicating a temporary delay in cash inflows or an increase in the time taken to convert inventory and receivables to cash. Overall, the company's cash conversion cycle has shown variability, but the recent decrease in 2023 is a positive signal of improved efficiency in managing its cash flows.