Carnival Corporation (CCL)

Debt-to-capital ratio

		Nov 30, 2024	Aug 31, 2024	May 31, 2024	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
Long-term debt	US$ in thousands	25,936,000	26,642,000	27,154,000	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
Total stockholders’ equity	US$ in thousands	9,251,000	8,597,000	6,814,000	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
Debt-to-capital ratio		0.74	0.76	0.80	0.81	0.81	0.81	0.84	0.84	0.82	0.77	0.78	0.74	0.70	0.64	0.59	0.57	0.52	0.49	0.42	0.29

November 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $25,936,000K ÷ ($25,936,000K + $9,251,000K)
= 0.74

The debt-to-capital ratio of Carnival Corporation has been consistently increasing over the analyzed periods. This ratio, which measures the proportion of a company's capital structure that is comprised of debt, has risen from 0.29 as of February 29, 2020, to 0.74 as of February 28, 2023. The trend indicates an increase in the company's reliance on debt financing compared to its equity financing.

Although there was a slight decline from 0.84 as of May 31, 2023, to 0.76 as of August 31, 2024, the ratio remained relatively high. This suggests that Carnival Corporation has a significant amount of debt in relation to its total capital, indicating potential financial risk and a higher exposure to fluctuations in interest rates.

Investors and creditors typically monitor the debt-to-capital ratio to evaluate a company's financial leverage and risk profile. A higher ratio indicates a greater dependency on debt, which can lead to increased interest payments and financial vulnerability during economic downturns. Carnival Corporation's steadily increasing debt-to-capital ratio may require close attention to manage potential risks associated with high leverage levels.