Carnival Corporation (CCL)
Financial leverage ratio
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 49,120,000 | 51,703,000 | 53,344,000 | 53,593,000 | 45,058,000 |
| Total stockholders’ equity | US$ in thousands | 6,882,000 | 7,065,000 | 12,144,000 | 20,555,000 | 25,365,000 |
| Financial leverage ratio | 7.14 | 7.32 | 4.39 | 2.61 | 1.78 |
November 30, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $49,120,000K ÷ $6,882,000K
= 7.14
The financial leverage ratio of Carnival Corp. has shown a rising trend over the past five years, indicating an increasing level of financial leverage. As of November 30, 2023, the ratio stands at 7.14, compared to 7.32 in 2022 and 4.39 in 2021. The significant jump from 2021 to 2022 indicates a substantial increase in the company's reliance on debt to finance its operations and investments. This trend suggests that Carnival Corp. is increasingly using debt as a source of financing, which may indicate a greater risk exposure to changes in interest rates and potential financial distress in the event of economic downturns. It is important for stakeholders to closely monitor the company's ability to service its debt obligations and its overall financial health in light of this escalating leverage.
Peer comparison
Nov 30, 2023