Carnival Corporation (CCL)

Return on total capital

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	2,005,000	-4,470,000	-7,921,000	-9,358,000	3,267,000
Long-term debt	US$ in thousands	28,483,000	31,953,000	28,509,000	22,130,000	9,675,000
Total stockholders’ equity	US$ in thousands	6,882,000	7,065,000	12,144,000	20,555,000	25,365,000
Return on total capital		5.67%	-11.46%	-19.48%	-21.92%	9.32%

November 30, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,005,000K ÷ ($28,483,000K + $6,882,000K)
= 5.67%

The return on total capital for Carnival Corp. has varied over the past five years. In 2023, the return on total capital was 5.22%, indicating the company generated a positive return on the capital employed in its operations. However, in 2022 and 2021, the return on total capital was negative, standing at -9.46% and -13.83% respectively, suggesting that the company did not effectively utilize its total capital to generate profits during those years. In 2020, there was a slight improvement with the return on total capital at -10.11%, although it remained negative. The most favorable performance was in 2019 when the return on total capital stood at 8.89%, indicating a relatively efficient use of total capital to generate returns. Overall, the company's return on total capital has been inconsistent, and it may be important for stakeholders to assess the factors influencing these fluctuations to understand the company's capital allocation and utilization strategies.