Carnival Corp. & plc (NYSE:CCL)

Ships and ship improvements

The value of ships and ship improvements has shown a generally increasing trend over the analyzed periods. Beginning at approximately $46.96 billion in 2018, it rose consistently to $55.03 billion by 2023, indicating ongoing investment or valuation growth in this asset category with minor fluctuations.

Ships under construction

This category exhibits a fluctuating pattern. Starting at $2.00 billion in 2018, the figure increased to its peak of $2.49 billion in 2019, followed by a sharp decline to $1.35 billion in 2020. From 2021 onward, values varied but remained generally lower than 2019, ending at $1.28 billion in 2023. This may suggest changes in capital expenditure timing or project completions affecting work-in-progress vessels.

Other property and equipment

The value associated with other property and equipment has increased steadily from $3.66 billion in 2018 to $4.21 billion in 2023. The growth, although moderate, appears consistent, reflecting ongoing acquisitions or enhancements in other asset areas.

Property and equipment, gross

The gross property and equipment values follow an upward trajectory from $52.62 billion in 2018 to $60.52 billion in 2023. Despite some minor declines in certain years, the overall increase indicates sustained capital investment and asset additions over time.

Accumulated depreciation

Accumulated depreciation shows a generally increasing negative balance, moving from -$17.29 billion in 2018 to -$20.41 billion in 2023. There is a noted dip in 2020, but overall, the rise in accumulated depreciation suggests continued usage and aging of the assets, which aligns with the portfolio's growth and lifespan considerations.

Property and equipment, net

Net property and equipment values demonstrate stability with a slight upward movement, starting at $35.34 billion in 2018 and reaching $40.12 billion in 2023. The net figures indicate that additions to assets have outpaced depreciation over the period, maintaining or modestly increasing the company's net invested asset base in property and equipment.

The analysis of the average age ratio of property, plant, and equipment over the given periods reveals a gradual upward trend. Starting at 32.85% in both 2018 and 2019, the ratio experienced a slight decrease to 30.96% in 2020, indicating a temporary reduction in the average age of assets. However, from 2020 onwards, the ratio resumed an increasing trajectory, reaching 31.91% in 2021, 32.91% in 2022, and further climbing to 33.72% by 2023.

This pattern suggests that after a brief period of asset renewal or acquisition, the company's property, plant, and equipment gradually aged over the subsequent years. The initial dip in 2020 may reflect investment in newer assets or disposal of older ones, followed by a phase where asset aging continued without significant replacement or upgrades.

Trend Summary

Overall, the average age ratio exhibits a slow but consistent increase from 2019 to 2023 after a minor reduction in 2020.

Implications

The rising average age ratio could indicate potential needs for future capital expenditures to maintain or enhance operational efficiency. It may also suggest increased maintenance costs or the risk of obsolescence if asset replacement is not managed appropriately.

Periods of Note

The decline in 2020 stands out as an anomaly in the otherwise upward trend, possibly reflecting deliberate asset management decisions during that year.

The financial data relating to property, plant, and equipment over the six-year period reveals several noteworthy trends.

Accumulated Depreciation

The accumulated depreciation values initially increased from $17,286 million in 2018 to $18,650 million in 2019. There was a decline in 2020 to $17,075 million, likely reflecting changes due to asset write-downs, disposals, or altered depreciation policies during that year. Subsequently, from 2021 to 2023, accumulated depreciation showed a steady increase each year, rising from $17,858 million to $20,407 million, indicating ongoing asset usage and aging consistent with wear and amortization over time.

Property and Equipment, Gross

The gross value of property and equipment rose from $52,622 million in 2018 to $56,781 million in 2019, suggesting investment in assets or acquisition of new property. There was a slight contraction in 2020 to $55,148 million, possibly due to asset disposal or reduced capital expenditure during that period. From 2021 onward, the gross value showed a steady recovery and growth, increasing annually and reaching $60,523 million in 2023, reflecting renewed investment or capital expansion strategies.

Average Age Ratio

The average age ratio remained relatively stable throughout the period, starting and ending in the low to mid-thirties percentage range. It dipped slightly in 2020 to 30.96%, potentially indicating newer assets entering the fleet or disposal of older assets during that period. Following this, the ratio gradually increased year over year, culminating at 33.72% in 2023, suggesting a gradual aging of the asset base. This upward trend is consistent with the pattern of continued accumulation of depreciation and asset investment.

Overall, the data suggests cyclical asset management activity, with periods of both asset investment and depreciation adjustments. The steady increase in accumulated depreciation alongside growth in gross property and equipment value indicates ongoing asset utilization matched with reinvestment. The relative stability of the average age ratio points to a balanced approach to asset renewal and retention over the observed timeframe.