Carnival Corporation (CCL)
Profitability ratios
Return on sales
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 26.31% | 50.18% | -278.46% | -93.15% | 37.39% |
| Operating profit margin | 10.07% | -41.48% | -371.54% | -209.28% | 15.89% |
| Pretax margin | -0.31% | -57.58% | -499.06% | -242.04% | 14.85% |
| Net profit margin | -0.38% | -57.71% | -497.96% | -241.64% | 14.50% |
The profitability ratios of Carnival Corp. show a fluctuating trend over the past five years. The gross profit margin has remained consistently high at 100.00% across the years, indicating the company's ability to control production costs and generate profit from its core operations.
However, the operating profit margin has been volatile, with a significant negative value of -328.77% in 2021, which improved to 9.06% in 2023. This suggests that the company has struggled with managing its operating expenses and generating operating income in recent years, but there has been a notable recovery in the most recent period.
Likewise, the pretax and net profit margins also depict a similar pattern of extreme fluctuations, with large negative margins in 2020 and 2021, followed by a marginal improvement in 2023. This indicates challenges in controlling non-operating expenses and taxes, as well as the company's ability to generate profit after accounting for all costs and taxes.
Overall, the profitability ratios reflect a turbulent financial performance for Carnival Corp., highlighting the need for careful cost management and strategic decision-making to sustain and improve its profitability in the future.
Return on investment
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.98% | -8.47% | -13.29% | -16.54% | 7.27% |
| Return on assets (ROA) | -0.15% | -11.78% | -17.81% | -19.10% | 6.64% |
| Return on total capital | 5.67% | -11.46% | -19.48% | -21.92% | 9.32% |
| Return on equity (ROE) | -1.08% | -86.24% | -78.24% | -49.80% | 11.79% |
Based on the profitability ratios for Carnival Corp. over the past five years, there are some notable trends.
First, the operating return on assets (Operating ROA) has fluctuated, with a positive value in 2023 indicating an improvement from negative values in the previous two years. This suggests that the company has become more efficient in generating profits from its assets.
The return on assets (ROA) also saw a significant improvement in 2023, shifting from negative values in the preceding years to a slightly positive value. This indicates that the company is generating a small profit from its total assets compared to previous years.
The return on total capital has shown a positive trend, with a notable increase in 2023, reflecting an improvement in the company's ability to generate earnings from its total invested capital.
However, the return on equity (ROE) remained negative in 2023, indicating that the company's shareholders' equity did not yield a positive return. This is a concern as it suggests that the company is not effectively generating profits from the shareholders' investment.
Overall, while there are signs of improvement in the profitability ratios, particularly in the areas of operating return on assets and return on total capital, the negative return on equity raises questions about the company's ability to generate satisfactory returns for its shareholders.