Carnival Corporation (CCL)

Cash conversion cycle

		Nov 30, 2024	Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020
Days of inventory on hand (DOH)	days	11.83	13.46	13.29	26.24	14.94
Days of sales outstanding (DSO)	days	8.63	10.45	13.66	47.06	23.52
Number of days of payables	days	26.44	29.78	32.60	58.74	27.84
Cash conversion cycle	days	-5.98	-5.87	-5.65	14.55	10.63

November 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 11.83 + 8.63 – 26.44
= -5.98

The cash conversion cycle of Carnival Corporation has exhibited notable fluctuations over the past five years. As of November 30, 2020, the company's cash conversion cycle stood at 10.63 days, indicating a relatively efficient management of cash flow and working capital. However, by November 30, 2021, the cycle extended to 14.55 days, suggesting a potential delay in converting inventory and receivables into cash.

Remarkably, in the following years, specifically by November 30, 2022, 2023, and 2024, Carnival Corporation managed to achieve negative cash conversion cycles of -5.65 days, -5.87 days, and -5.98 days respectively. This signifies that the company was able to convert its investments in inventory and receivables into cash swiftly, possibly indicating effective inventory management and collection processes.

Overall, the trend in Carnival Corporation's cash conversion cycle indicates a mix of efficient and less efficient periods in terms of cash flow and working capital management over the analyzed years. A negative cycle suggests a faster conversion of resources into cash, a positive sign for the company's financial health.