Carnival Corporation (CCL)
Solvency ratios
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.53 | 0.58 | 0.62 | 0.53 | 0.41 |
| Debt-to-capital ratio | 0.74 | 0.81 | 0.82 | 0.70 | 0.52 |
| Debt-to-equity ratio | 2.80 | 4.14 | 4.52 | 2.35 | 1.08 |
| Financial leverage ratio | 5.30 | 7.14 | 7.32 | 4.39 | 2.61 |
The solvency ratios of Carnival Corporation indicate the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio:
- There has been an increasing trend in this ratio from 0.41 in 2020 to 0.53 in 2021, reaching a peak of 0.62 in 2022, and then slightly decreasing to 0.58 in 2023 and 0.53 in 2024.
- This suggests that the company's reliance on debt to finance its assets has been fluctuating but remained relatively stable in recent years.
2. Debt-to-capital ratio:
- The debt-to-capital ratio has also shown an upward trend, starting at 0.52 in 2020 and increasing to 0.70 in 2021, peaking at 0.82 in 2022, and then slightly decreasing to 0.81 in 2023 and 0.74 in 2024.
- This indicates that a significant portion of the company's capital structure is funded through debt, which has been on the rise over the years.
3. Debt-to-equity ratio:
- The debt-to-equity ratio has shown a significant increase from 1.08 in 2020 to 2.35 in 2021, more than doubling to 4.52 in 2022, and then decreasing to 4.14 in 2023 before declining further to 2.80 in 2024.
- This indicates that Carnival Corporation's level of debt in relation to its equity has fluctuated significantly, reflecting changes in the company's capital structure and financial leverage.
4. Financial leverage ratio:
- The financial leverage ratio has shown a similar trend as the debt-to-equity ratio, starting at 2.61 in 2020 and increasing to 4.39 in 2021, peaking at 7.32 in 2022, and then slightly decreasing to 7.14 in 2023 and 5.30 in 2024.
- This ratio reflects the company's ability to meet its financial obligations through debt financing, with higher values indicating higher financial risk.
In summary, Carnival Corporation's solvency ratios show varying levels of debt and leverage over the years, highlighting the importance of monitoring these metrics to assess the company's financial health and risk exposure.
Coverage ratios
| Nov 30, 2024 | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 58.59 | 0.97 | -2.78 | -4.95 | -10.46 |
Based on the provided data, Carnival Corporation's interest coverage ratio has exhibited significant fluctuations over the past five years. In November 2020 and November 2021, the interest coverage ratios were -10.46 and -4.95, respectively, indicating that the company was not generating sufficient operating income to cover its interest expenses. This suggests a high level of financial risk and potential difficulties in meeting debt obligations.
However, there was a noticeable improvement in the interest coverage ratio in November 2022, reaching -2.78. While still negative, this represents a partial recovery compared to the previous years. By November 2023, the interest coverage ratio turned positive at 0.97, indicating that Carnival Corporation's operating income was just enough to cover its interest expenses.
The most significant improvement occurred in November 2024, with a substantial interest coverage ratio of 58.59. This suggests that the company's ability to meet its interest obligations improved significantly, indicating a much healthier financial position.
Overall, the trend in Carnival Corporation's interest coverage ratio shows a volatile financial performance in the past five years, with a notable rebound in 2024. Investors and stakeholders should continue to monitor the company's financial health and sustainability in meeting its debt obligations.