Carnival Corporation (CCL)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	11.83	11.63	12.34	13.17	13.46	12.28	11.57	12.54	13.29	15.01	18.36	22.19	26.24	33.99	33.15	21.93	14.94	11.98	10.47	12.08
Days of sales outstanding (DSO)	days	8.80	9.83	8.26	11.51	10.45	9.90	10.57	14.22	13.65	16.82	29.28	39.09	71.04	156.83	572.45	140.82	18.60	13.65	13.36	7.13
Number of days of payables	days	26.44	25.11	25.78	27.37	29.78	28.05	27.54	28.61	32.60	32.88	39.40	43.71	58.74	70.93	53.71	35.49	27.84	23.72	52.34	24.83
Cash conversion cycle	days	-5.81	-3.65	-5.18	-2.68	-5.86	-5.86	-5.39	-1.85	-5.66	-1.05	8.24	17.58	38.53	119.88	551.89	127.26	5.71	1.91	-28.51	-5.61

November 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 11.83 + 8.80 – 26.44
= -5.81

The cash conversion cycle of Carnival Corporation has shown significant fluctuations over the analyzed periods. Starting with negative values in 2020 and early 2021, indicating efficient cash utilization and short working capital cycles, the company moved to an extended cycle length in mid-2021, peaking at 551.89 days. This could suggest challenges in managing cash flow and working capital efficiently during that time.

Subsequently, there was a gradual reduction in the cash conversion cycle towards the end of 2021 and into 2022, with the company achieving negative values again by May 2022. This return to negative days signifies improved efficiency in cash conversion and working capital management.

From 2022 onwards, the trend continued with fluctuations around the zero mark, indicating that Carnival Corporation was effectively managing its operating cycle and converting its inventory and receivables into cash efficiently.

Overall, the analysis shows that Carnival Corporation experienced variations in its cash conversion cycle, highlighting periods of potential working capital challenges followed by improvements in efficiency and management of cash flow.