Carnival Corporation (CCL)

Debt-to-equity ratio

		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
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
Debt-to-equity ratio		4.27	4.14	4.24	5.44	5.30	4.52	3.40	3.54	2.90	2.35	1.81	1.45	1.34	1.08	0.97	0.71	0.40	0.38	0.35	0.38

February 29, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $28,544,000K ÷ $6,682,000K
= 4.27

The debt-to-equity ratio of Carnival Corporation has shown a fluctuating trend over the past few quarters. From November 2019 to May 2020, the ratio increased steadily from 0.38 to 5.44, indicating a significant rise in debt relative to equity. Subsequently, there was a gradual decline in the ratio from August 2020 to February 2022, suggesting a reduction in debt levels or an increase in equity.

Between May 2021 and November 2021, the ratio decreased notably from 1.45 to 1.81, showcasing improved financial leverage. However, there was a sharp decline in the ratio from November 2021 to May 2022, reaching 2.35, signifying a shift towards higher debt levels.

From May 2022 to November 2023, there was a continued increase in the debt-to-equity ratio from 3.40 to 5.30, indicating a higher proportion of debt in the capital structure compared to equity. This suggests potential financial risk and a need for careful management of debt obligations.

Overall, the fluctuating trend in Carnival Corporation's debt-to-equity ratio highlights the company's changing capital structure and the importance of monitoring its debt levels relative to equity to ensure financial stability and proper risk management.