Carnival Corporation (CCL)

Debt-to-capital ratio

		Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019
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
Debt-to-capital ratio		0.81	0.82	0.70	0.52	0.28

November 30, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $28,483,000K ÷ ($28,483,000K + $6,882,000K)
= 0.81

The debt-to-capital ratio of Carnival Corp. has fluctuated over the past five years. In 2019, the ratio stood at 0.31, indicating that the company relied more on equity financing compared to debt. However, this ratio increased to 0.57 in 2020, signaling a higher proportion of debt in the company's capital structure. The trend continued in 2021 with a further rise to 0.73, reflecting increased reliance on debt financing. By 2022, the ratio climbed to 0.83, suggesting a higher proportion of debt in the company's capital structure compared to the previous years. In 2023, the ratio peaked at 0.82, indicating a persistent reliance on debt for funding relative to the total capital employed. Overall, the increasing trend in the debt-to-capital ratio signals a growing reliance on debt financing, which may be a concern for the company's financial risk management and sustainable capital structure.