Carnival Corporation (CCL)
Liquidity ratios
| 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 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.36 | 0.46 | 0.43 | 0.52 | 0.64 | 0.71 | 0.65 | 0.64 | 0.74 | 0.97 | 0.94 | 1.16 | 1.45 | 1.22 | 0.91 | 0.69 | 0.27 | 0.23 | 0.30 | 0.27 |
| Quick ratio | 0.23 | 0.52 | 0.56 | 0.65 | 0.78 | 0.42 | 0.57 | 0.57 | 0.66 | 0.90 | 0.85 | 1.08 | 1.36 | 1.13 | 0.84 | 0.63 | 0.16 | 0.11 | 0.18 | 0.15 |
| Cash ratio | 0.18 | 0.47 | 0.52 | 0.62 | 0.73 | 0.38 | 0.55 | 0.54 | 0.63 | 0.88 | 0.82 | 1.06 | 1.34 | 1.10 | 0.80 | 0.58 | 0.13 | 0.06 | 0.13 | 0.12 |
The liquidity ratios of Carnival Corporation show fluctuations over the reporting periods. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has decreased from 1.45 in February 2021 to 0.36 in February 2024. This indicates a decline in the company's short-term liquidity position.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also shows a downward trend, falling from 1.36 in February 2021 to 0.23 in February 2024. This suggests a potential strain on the company's ability to meet immediate liabilities.
The cash ratio, which focuses solely on the availability of cash to cover current liabilities, exhibits a similar pattern of decline, dropping from 1.34 in February 2021 to 0.18 in February 2024. This indicates a reduction in the company's cash reserves relative to its short-term obligations.
Overall, the decreasing liquidity ratios of Carnival Corporation over the reporting periods signify a potential liquidity risk and underline the importance of monitoring the company's ability to meet its short-term financial commitments.
See also:
Carnival Corporation Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -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 | -1.44 | 1.73 | -1.35 |
The cash conversion cycle of Carnival Corporation has fluctuated over the past few quarters. It measures the time it takes for the company to convert its investments in inventory and other resources into cash from sales.
In the most recent period ending February 29, 2024, the company's cash conversion cycle improved to -2.68 days, indicating that it was able to receive cash from its sales before paying for its inventory and other expenses. This suggests efficient management of working capital.
In contrast, there were periods in the past where the cash conversion cycle was significantly longer, such as in August 31, 2021, when it reached 551.89 days. During this time, the company took an extended period to convert its resources into cash flow, indicating potential inefficiencies in managing working capital.
Overall, the trend in the cash conversion cycle of Carnival Corporation shows variability, with periods of efficiency and inefficiency in converting investments into cash flow. Tracking this metric is crucial for assessing the company's operational efficiency and financial health.