Carnival Corporation (CCL)

Debt-to-equity ratio

		Nov 30, 2024	Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020
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
Debt-to-equity ratio		2.80	4.14	4.52	2.35	1.08

November 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $25,936,000K ÷ $9,251,000K
= 2.80

The debt-to-equity ratio of Carnival Corporation has shown a significant increase over the past five years. Starting at 1.08 in November 2020, the ratio has steadily risen to 2.35 in November 2021, indicating a higher level of debt in relation to equity. This trend continued with a substantial increase to 4.52 in November 2022, reflecting a further increase in debt relative to equity.

Despite a slight decrease to 4.14 in November 2023, the ratio remained at a relatively high level, indicating that the company's debt levels are still significantly higher than its equity. There was a notable improvement in November 2024, with the ratio decreasing to 2.80. However, the ratio is still significantly higher than the starting point in 2020, suggesting that Carnival Corporation continues to carry a substantial amount of debt relative to its equity position.

Overall, the increasing trend in the debt-to-equity ratio of Carnival Corporation over the past five years indicates a growing reliance on debt financing, which may pose potential risks related to solvency and financial stability. Investors and stakeholders should closely monitor the company's debt management and leverage levels going forward.