Name: Carnival Corp. & plc (NYSE:CCL) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Carnival Corp. & plc, consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019	Nov 30, 2018
Short-term borrowings	—)	200)	2,790)	3,084)	231)	848)
Current portion of long-term debt	2,089)	2,393)	1,927)	1,742)	1,596)	1,578)
Current portion of operating lease liabilities	149)	146)	142)	151)	—)	—)
Accounts payable	1,168)	1,050)	797)	624)	756)	730)
Accrued liabilities and other	2,003)	1,942)	1,640)	1,145)	1,809)	1,653)
Customer deposits	6,072)	4,874)	3,112)	1,940)	4,735)	4,395)
Current liabilities	11,481)	10,605)	10,408)	8,686)	9,127)	9,204)
Long-term debt, excluding current portion	28,483)	31,953)	28,509)	22,130)	9,675)	7,897)
Long-term operating lease liabilities	1,170)	1,189)	1,239)	1,273)	—)	—)
Other long-term liabilities	1,104)	891)	1,044)	949)	891)	857)
Long-term liabilities	30,757)	34,033)	30,792)	24,352)	10,566)	8,754)
Total liabilities	42,238)	44,638)	41,200)	33,038)	19,693)	17,958)
Carnival Corporation common stock, $0.01 par value	12)	12)	11)	11)	7)	7)
Carnival plc ordinary shares, $1.66 par value	361)	361)	361)	361)	358)	358)
Additional paid-in capital	16,712)	16,873)	15,292)	13,948)	8,807)	8,756)
Retained earnings	185)	269)	6,448)	16,075)	26,653)	25,066)
Accumulated other comprehensive loss (AOCI)	(1,939)	(1,982)	(1,502)	(1,436)	(2,066)	(1,949)
Treasury stock, at cost	(8,449)	(8,468)	(8,466)	(8,404)	(8,394)	(7,795)
Shareholders’ equity	6,882)	7,065)	12,144)	20,555)	25,365)	24,443)
Total liabilities and shareholders’ equity	49,120)	51,703)	53,344)	53,593)	45,058)	42,401)

Based on: 10-K (reporting date: 2023-11-30), 10-K (reporting date: 2022-11-30), 10-K (reporting date: 2021-11-30), 10-K (reporting date: 2020-11-30), 10-K (reporting date: 2019-11-30), 10-K (reporting date: 2018-11-30).

The balance sheet exhibits a profound shift in capital structure between November 2018 and November 2023, characterized by a substantial increase in total liabilities and a simultaneous erosion of shareholders' equity. Total liabilities rose from 17.96 billion USD in 2018 to 42.24 billion USD in 2023, peaking at 44.64 billion USD in 2022. This expansion was primarily driven by a surge in long-term debt, which grew from 7.90 billion USD in 2018 to a peak of 31.95 billion USD in 2022, before slightly moderating to 28.48 billion USD in 2023.

Debt and Liability Trends: A significant escalation in long-term borrowing is observed starting in 2020, where long-term debt more than doubled from 9.68 billion USD in 2019 to 22.13 billion USD. Current liabilities have also trended upward, increasing from 9.20 billion USD in 2018 to 11.48 billion USD in 2023. Notably, customer deposits experienced a sharp decline in 2020 to 1.94 billion USD but recovered strongly to reach a period high of 6.07 billion USD by 2023, indicating a return in booking activity.
Equity Erosion and Capital Adjustments: Shareholders' equity has declined precipitously from 24.44 billion USD in 2018 to 6.88 billion USD in 2023. This contraction is almost entirely attributed to the depletion of retained earnings, which plummeted from 25.07 billion USD in 2018 to 185 million USD in 2023, reflecting severe cumulative losses over the period. To mitigate this decline, additional paid-in capital was increased from 8.76 billion USD in 2018 to 16.71 billion USD in 2023, suggesting the issuance of new equity to sustain operations and manage the liquidity crisis.
Solvency and Leverage Dynamics: The relationship between debt and equity has inverted over the analyzed period. In 2018, the company maintained a robust equity base relative to its liabilities. By 2023, the leverage profile shifted dramatically, with total liabilities outweighing shareholders' equity by a factor of approximately six to one. While short-term borrowings spiked in 2020 and 2021, they were reduced to 200 million USD by 2022, shifting the burden of indebtedness predominantly toward long-term obligations.

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