Carnival Corporation (CCL)

Financial leverage 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
Total assets	US$ in thousands	49,057,000	49,805,000	49,603,000	49,761,000	49,120,000	49,756,000	51,873,000	51,985,000	51,703,000	51,917,000	52,988,000	53,281,000	53,344,000	53,514,000	55,064,000	57,226,000	53,593,000	50,818,000	49,817,000	46,943,000
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
Financial leverage ratio		5.30	5.79	7.28	7.45	7.14	7.15	8.84	8.43	7.32	6.20	6.42	5.17	4.39	3.60	3.08	2.89	2.61	2.61	2.39	1.93

November 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $49,057,000K ÷ $9,251,000K
= 5.30

The financial leverage ratio of Carnival Corporation has been on an upward trend over the past few years, indicating increased reliance on debt to finance its operations. The ratio has increased from 1.93 as of February 29, 2020, to 5.30 as of November 30, 2024. This suggests that Carnival Corporation has been taking on more debt relative to its equity, which can lead to higher financial risk and potentially lower financial flexibility. The significant increase in the financial leverage ratio between February 28, 2023, and May 31, 2023, followed by a slight decrease and stabilization in the following periods, may suggest a period of aggressive debt financing or capital restructuring. Investors and stakeholders should closely monitor Carnival Corporation's ability to manage its debt levels and ensure sustainable growth in the long term.