Carnival Corporation (CCL)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,408,000 | 2,004,000 | 423,000 | -1,497,000 | -3,098,000 | -4,471,000 | -5,594,000 | -7,698,000 | -7,860,000 | -7,921,000 | -7,534,000 | -7,643,000 | -10,223,000 | -9,357,000 | -6,981,000 | -2,552,000 | 2,164,000 | 3,268,000 | 3,335,000 | 3,249,000 |
| Long-term debt | US$ in thousands | 28,544,000 | 28,483,000 | 29,516,000 | 31,921,000 | 32,672,000 | 31,953,000 | 28,518,000 | 29,263,000 | 29,887,000 | 28,509,000 | 26,831,000 | 25,968,000 | 26,522,000 | 22,130,000 | 18,916,000 | 14,870,000 | 9,738,000 | 9,675,000 | 8,893,000 | 9,080,000 |
| Total stockholders’ equity | US$ in thousands | 6,682,000 | 6,882,000 | 6,960,000 | 5,865,000 | 6,170,000 | 7,065,000 | 8,379,000 | 8,260,000 | 10,311,000 | 12,144,000 | 14,863,000 | 17,876,000 | 19,813,000 | 20,555,000 | 19,503,000 | 20,840,000 | 24,290,000 | 25,365,000 | 25,295,000 | 24,108,000 |
| Return on total capital | 6.84% | 5.67% | 1.16% | -3.96% | -7.98% | -11.46% | -15.16% | -20.52% | -19.55% | -19.48% | -18.07% | -17.43% | -22.06% | -21.92% | -18.17% | -7.15% | 6.36% | 9.33% | 9.75% | 9.79% |
February 29, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,408,000K ÷ ($28,544,000K + $6,682,000K)
= 6.84%
The return on total capital for Carnival Corporation has shown varying levels over the past few reporting periods. From August 2019 to February 2022, the return on total capital was consistently negative, indicating challenges in generating returns from the capital employed.
However, there appears to be a positive trend from May 2022 to February 2024 where the return on total capital gradually improved from -20.52% to 6.84%. This signifies that the company may have been able to enhance its operational efficiency and profitability during this period.
It is essential for investors and stakeholders to delve deeper into the reasons behind this improving trend to assess the sustainability and effectiveness of Carnival Corporation's capital utilization strategies.
Peer comparison
Feb 29, 2024