Carnival Corporation (CCL)
Return on total capital
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,574,000 | 2,005,000 | -4,470,000 | -7,921,000 | -9,358,000 |
| Long-term debt | US$ in thousands | 25,936,000 | 28,483,000 | 31,953,000 | 28,509,000 | 22,130,000 |
| Total stockholders’ equity | US$ in thousands | 9,251,000 | 6,882,000 | 7,065,000 | 12,144,000 | 20,555,000 |
| Return on total capital | 10.16% | 5.67% | -11.46% | -19.48% | -21.92% |
November 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,574,000K ÷ ($25,936,000K + $9,251,000K)
= 10.16%
Carnival Corporation's return on total capital has shown improvement over the years based on the provided data. The company's return on total capital was -21.92% as of November 30, 2020, indicating a negative return on the invested capital. However, there was a slight improvement in the following year, with the return on total capital increasing to -19.48% by November 30, 2021.
By November 30, 2022, Carnival Corporation's return on total capital further improved to -11.46%, moving closer to positive territory. The positive trend continued in the subsequent years, with the return on total capital reaching 5.67% by November 30, 2023, and showing a more significant improvement to 10.16% by November 30, 2024.
The increasing trend in return on total capital indicates that Carnival Corporation has been more effective in generating returns from the total capital employed in its operations. This positive trajectory suggests that the company's financial performance has strengthened over the years, which can be a positive signal for investors and stakeholders.
Peer comparison
Nov 30, 2024