Carnival Corporation (CCL)

Return on equity (ROE)

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Net income	US$ in thousands	-74,000	-6,093,000	-9,501,000	-10,236,000	2,990,000
Total stockholders’ equity	US$ in thousands	6,882,000	7,065,000	12,144,000	20,555,000	25,365,000
ROE		-1.08%	-86.24%	-78.24%	-49.80%	11.79%

November 30, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-74,000K ÷ $6,882,000K
= -1.08%

Carnival Corp.'s return on equity (ROE) has experienced significant fluctuations over the past five years. In 2019, the ROE stood at a healthy 11.79%, indicating that the company was generating a satisfactory return for its shareholders. However, this trend sharply reversed in subsequent years, with the ROE plummeting to -49.80% in 2020, -78.23% in 2021, and a substantial -86.25% in 2022, reflecting a consistent deterioration in the company's ability to generate returns from shareholders' equity.

The most recent ROE figure as of November 30, 2023, at -1.10%, suggests a marginal improvement from the previous years but still indicates that the company's profitability relative to shareholders' equity remains a matter of concern.

Such sustained negative ROE figures indicate that Carnival Corp. has not been effectively utilizing shareholder funds to generate profits, which could suggest underlying operational or financial challenges. It may be prudent for stakeholders to assess the company's strategies and financial health to ascertain the causes of these persistently low ROE figures and to evaluate potential remedial actions to improve the company's financial performance and return on equity.