Carnival Corporation (CCL)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	405,000	-74,000	-1,624,000	-3,468,000	-4,895,000	-6,093,000	-7,115,000	-9,181,000	-9,419,000	-9,501,000	-9,103,000	-9,125,000	-11,427,000	-10,235,000	-7,590,000	-2,952,000	1,873,000	2,990,000	3,060,000	2,987,000
Total assets	US$ in thousands	49,761,000	49,120,000	49,756,000	51,873,000	51,985,000	51,703,000	51,917,000	52,988,000	53,281,000	53,344,000	53,514,000	55,064,000	57,226,000	53,593,000	50,818,000	49,817,000	46,943,000	45,058,000	44,001,000	44,512,000
ROA		0.81%	-0.15%	-3.26%	-6.69%	-9.42%	-11.78%	-13.70%	-17.33%	-17.68%	-17.81%	-17.01%	-16.57%	-19.97%	-19.10%	-14.94%	-5.93%	3.99%	6.64%	6.95%	6.71%

February 29, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $405,000K ÷ $49,761,000K
= 0.81%

Carnival Corporation's return on assets (ROA) has displayed fluctuations over the past few quarters, ranging from a low of -19.97% in Feb 2021 to a high of 6.95% in May 2019. The ROA has been negative in most recent quarters, indicating challenges in generating profits from its total assets.

The downward trend in ROA from mid-2019 to mid-2020, with negative values, suggests that the company may have faced difficulties in efficiently utilizing its assets to generate profits during this period.

The positive ROA figures in the earlier quarters could indicate better asset utilization and profitability. However, the recent negative values highlight a decline in the efficiency of using assets to generate earnings. This trend may raise concerns about the company's operational performance and ability to generate returns for its shareholders.

In conclusion, the analysis of Carnival Corporation's ROA underscores the importance of closely monitoring the company's asset management strategies to improve profitability and overall financial performance.