Carnival Corporation (CCL)
Profitability ratios
Return on sales
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 37.31% | 26.31% | 50.18% | -278.46% | -93.15% |
| Operating profit margin | 14.33% | 10.07% | -41.48% | -371.54% | -209.28% |
| Pretax margin | 7.68% | -0.31% | -57.58% | -499.06% | -242.04% |
| Net profit margin | 7.68% | -0.38% | -57.71% | -497.96% | -241.64% |
Based on the provided data, Carnival Corporation's profitability ratios have shown significant fluctuations over the years.
- Gross Profit Margin: The gross profit margin indicates the percentage of revenue that exceeds the cost of goods sold. In November 2020 and 2021, Carnival had negative gross profit margins of -93.15% and -278.46%, respectively, suggesting that the company's cost of goods sold exceeded its revenue during those periods. However, from November 2022 onwards, the gross profit margin improved significantly, reaching 50.18% in 2022 and further increasing to 37.31% in 2024, indicating that Carnival was able to generate more profit on its sales.
- Operating Profit Margin: The operating profit margin reflects the efficiency of the company's operations in generating profits before interest and taxes. Carnival reported negative operating profit margins in November 2020 and 2021, with percentages of -209.28% and -371.54%, respectively. However, the operating profit margin improved in the following years, reaching -41.48% in 2022 and further increasing to 14.33% in 2024, indicating a positive trend in operational efficiency.
- Pretax Margin: The pretax margin represents the percentage of each dollar of revenue that translates into pre-tax profit. Carnival Corporation reported negative pretax margins from November 2020 to 2022, with the margins improving from -242.04% in 2020 to -57.58% in 2022. However, the company's performance turned positive in 2023 and 2024, with pretax margins of -0.31% and 7.68%, respectively, indicating an improvement in profitability before taxes.
- Net Profit Margin: The net profit margin shows the company's profitability after all expenses have been deducted. Carnival reported negative net profit margins in November 2020 and 2021, with percentages of -241.64% and -497.96%, respectively. However, similar to other profitability metrics, the net profit margin showed improvement over the years, reaching -0.38% in 2023 and 7.68% in 2024, indicating an enhancement in overall profitability.
In conclusion, despite the initial challenges faced by Carnival Corporation in terms of profitability, the company showed improvement in its margins over the years, signaling positive developments in its financial performance and operational efficiency.
Return on investment
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.29% | 3.98% | -8.47% | -13.29% | -16.54% |
| Return on assets (ROA) | 3.91% | -0.15% | -11.78% | -17.81% | -19.10% |
| Return on total capital | 10.16% | 5.67% | -11.46% | -19.48% | -21.92% |
| Return on equity (ROE) | 20.71% | -1.08% | -86.24% | -78.24% | -49.80% |
Carnival Corporation's profitability ratios show a mixed performance over the past five years.
1. Operating return on assets (Operating ROA) has improved from -16.54% in November 2020 to 7.29% in November 2024. This indicates that the company is generating more profit from its operating assets over the years.
2. Return on assets (ROA) has also shown improvement, moving from -19.10% in November 2020 to 3.91% in November 2024. This signifies that the company's overall profitability in relation to its total assets has been on the rise.
3. Return on total capital has displayed similar positive trends, increasing from -21.92% in November 2020 to 10.16% in November 2024. This indicates that Carnival Corporation has been able to generate better returns in relation to its total capital employed in the business.
4. Return on equity (ROE) has shown a significant turnaround, moving from a substantial negative value of -49.80% in November 2020 to a positive value of 20.71% in November 2024. This improvement signifies that the company has been better able to generate returns for its shareholders' equity.
Overall, Carnival Corporation's profitability ratios have shown a positive trend, with improvements in generating returns on assets, total capital, and equity over the years, indicating a potential strengthening of the company's financial performance.