Carnival Corporation (CCL)

Operating return on assets (Operating ROA)

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Operating income	US$ in thousands	1,956,000	-4,379,000	-7,089,000	-8,865,000	3,276,000
Total assets	US$ in thousands	49,120,000	51,703,000	53,344,000	53,593,000	45,058,000
Operating ROA		3.98%	-8.47%	-13.29%	-16.54%	7.27%

November 30, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $1,956,000K ÷ $49,120,000K
= 3.98%

To analyze Carnival Corp.'s operating return on assets (operating ROA), we will assess the trend and the factors affecting this ratio. Operating ROA measures the company's ability to generate operating income from its assets.

In 2023, Carnival Corp. achieved a positive operating ROA of 3.98%, marking an improvement from the negative figures in the previous two years. This suggests that the company's ability to generate operating income from its assets has strengthened.

The negative operating ROA in 2022 and 2021 indicates that Carnival Corp. experienced challenges in generating operating income from its assets. The significant decline in 2021, compared to 2020, suggests a deterioration in the company's operational efficiency and/or financial performance during that period. It is important to assess the underlying reasons leading to such a substantial decrease in operating ROA.

The positive operating ROA in 2019 reflects a strong ability to generate operating income from assets, indicating efficient asset utilization or improved operating profitability during that year.

Further analysis would be required to understand the specific factors influencing Carnival Corp.'s operating ROA in each period, such as changes in operating income, the composition and efficiency of the asset base, and potential expenses impacting the numerator of the ratio.