Carnival Corporation (CCL)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 45,058,000 | 44,001,000 | 44,512,000 |
| 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 |
| Financial leverage ratio | 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 | 1.78 | 1.74 | 1.85 |
February 29, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $49,761,000K ÷ $6,682,000K
= 7.45
The financial leverage ratio of Carnival Corporation has varied over the past few years, indicating changes in the company's debt levels relative to its equity. The ratio has generally been increasing from 1.74 in May 2019 to 8.84 in May 2023, then fluctuating between 7.14 and 7.45 until February 2024.
This trend suggests that Carnival Corporation has been relying more on debt financing compared to equity financing during the period under consideration. A higher financial leverage ratio indicates a higher proportion of debt in the company's capital structure, which can amplify returns in good times but also increase financial risk in challenging economic conditions.
It is important for investors and stakeholders to closely monitor the financial leverage ratio of the company to assess its financial health and risk profile. Further analysis of Carnival Corporation's debt levels, interest coverage, and profitability is recommended to gain a more comprehensive understanding of its overall financial position.
Peer comparison
Feb 29, 2024