Carnival Corporation (CCL)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.53 | 0.53 | 0.55 | 0.57 | 0.58 | 0.59 | 0.62 | 0.63 | 0.62 | 0.55 | 0.55 | 0.56 | 0.53 | 0.50 | 0.47 | 0.46 | 0.41 | 0.37 | 0.30 | 0.21 |
| Debt-to-capital ratio | 0.74 | 0.76 | 0.80 | 0.81 | 0.81 | 0.81 | 0.84 | 0.84 | 0.82 | 0.77 | 0.78 | 0.74 | 0.70 | 0.64 | 0.59 | 0.57 | 0.52 | 0.49 | 0.42 | 0.29 |
| Debt-to-equity ratio | 2.80 | 3.10 | 3.99 | 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 |
| 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 |
The solvency ratios for Carnival Corporation show a consistent trend of increasing leverage over the years.
The Debt-to-assets ratio has been steadily rising from 0.21 in February 2020 to 0.53 in November 2021, and then stabilizing around 0.55 to 0.58 in 2023 and 2024. This indicates that a significant portion of Carnival's assets are financed through debt.
The Debt-to-capital ratio also displays a similar increasing trend, starting at 0.29 in February 2020 and reaching 0.74 in February 2022 before stabilizing around 0.80 in 2024. This ratio shows the proportion of Carnival's capital that is funded by debt.
The Debt-to-equity ratio has shown a substantial rise, from 0.40 in February 2020 to 4.27 in February 2024. This indicates that the company's reliance on debt financing relative to equity has been increasing significantly over the years.
The Financial leverage ratio, which measures the company's total assets relative to its equity, has also experienced a continuous increase, reflecting Carnival Corporation's growing level of financial leverage.
Overall, these solvency ratios suggest that Carnival Corporation has been taking on increasing levels of debt to finance its operations and growth, which may indicate higher financial risk and potential challenges in managing debt obligations in the future.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.03 | 1.88 | 1.48 | 1.21 | 0.97 | 0.21 | -0.77 | -1.74 | -2.78 | -3.71 | -5.12 | -5.00 | -4.95 | -4.71 | -5.12 | -8.26 | -10.45 | -11.71 | -7.55 | 10.30 |
The interest coverage ratio measures a company's ability to meet its interest expenses with its operating income. Carnival Corporation's interest coverage ratio fluctuated significantly over the period indicated in the data.
As of February 29, 2020, the interest coverage ratio stood at 10.30, indicating that Carnival Corporation was comfortably able to cover its interest expenses with its operating income. However, the ratio turned negative in the subsequent periods, plunging to -7.55 by May 31, 2020, and hitting a low of -11.71 by August 31, 2020.
The negative interest coverage ratios from May 31, 2020, to August 31, 2022, suggest that the company's operating income was insufficient to cover its interest expenses during these periods, signaling a potential financial strain.
From November 30, 2022, onwards, the interest coverage ratio started to improve, gradually moving from negative to positive territory. By November 30, 2024, the ratio reached 2.03, indicating that Carnival Corporation's operating income was more than double its interest expenses, reflecting improved financial health.
The upward trend in the interest coverage ratio from late 2022 to 2024 suggests an enhancement in Carnival Corporation's ability to manage its interest obligations, potentially signaling a more stable financial position in the latter periods.