Carnival Corporation (CCL)

Interest coverage

Nov 30, 2023 Nov 30, 2022 Nov 30, 2021 Nov 30, 2020 Nov 30, 2019
Earnings before interest and tax (EBIT) US$ in thousands 2,005,000 -4,470,000 -7,921,000 -9,358,000 3,267,000
Interest expense US$ in thousands 2,066,000 1,609,000 1,601,000 895,000 206,000
Interest coverage 0.97 -2.78 -4.95 -10.46 15.86

November 30, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $2,005,000K ÷ $2,066,000K
= 0.97

Carnival Corp.'s interest coverage ratio has fluctuated significantly over the past five years. In 2023, the company's interest coverage ratio increased to 1.07, indicating an improvement in its ability to cover interest expenses with its operating income. However, in the previous years, the interest coverage ratio was negative, which suggests that the company's operating income was not sufficient to cover its interest expenses. This may raise concerns about the company's financial stability and its ability to meet its debt obligations. Moreover, the significant negative ratios in 2020 and 2021 indicate serious challenges in meeting interest obligations with the available operating income. It is essential for Carnival Corp. to continue monitoring and improving its interest coverage ratio to ensure its long-term financial health and stability.


Peer comparison

Nov 30, 2023


See also:

Carnival Corporation Interest Coverage