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Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

Economic Profit
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

Carnival Corp. & plc, economic profit calculation

US$ in millions

12 months ended:	Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019	Nov 30, 2018
Net operating profit after taxes (NOPAT)¹	2,207)	(4,485)	(7,863)	(9,312)	3,226)	3,339)
Cost of capital²	14.26%	12.18%	13.33%	14.61%	18.75%	20.59%
Invested capital³	39,428)	44,143)	46,517)	49,017)	38,330)	35,074)

Economic profit⁴	(3,417)	(9,860)	(14,064)	(16,475)	(3,962)	(3,882)

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).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2023 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 2,207 – 14.26% × 39,428 = -3,417

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Item	Description	The company
Economic profit	Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital.	Carnival Corp. & plc economic profit increased from 2021 to 2022 and from 2022 to 2023.

Carnival Corp. & plc, NOPAT calculation

US$ in millions

12 months ended:	Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019	Nov 30, 2018
Net income (loss)	(74)	(6,093)	(9,501)	(10,236)	2,990)	3,152)
Deferred income tax expense (benefit)¹	—)	—)	—)	—)	—)	—)
Increase (decrease) in equity equivalents²	—)	—)	—)	—)	—)	—)
Interest expense, net of capitalized interest	2,066)	1,609)	1,601)	895)	206)	194)
Interest expense, operating lease liability³	78)	69)	52)	48)	59)	10)
Adjusted interest expense, net of capitalized interest	2,144)	1,678)	1,653)	943)	265)	204)
Tax benefit of interest expense, net of capitalized interest⁴	415)	4)	(4)	(2)	(6)	(3)
Adjusted interest expense, net of capitalized interest, after taxes⁵	2,559)	1,682)	1,650)	942)	258)	201)
Interest income	(233)	(74)	(12)	(18)	(23)	(14)
Investment income, before taxes	(233)	(74)	(12)	(18)	(23)	(14)
Tax expense (benefit) of investment income⁶	(45)	—)	—)	—)	1)	—)
Investment income, after taxes⁷	(278)	(74)	(12)	(18)	(22)	(14)
Net operating profit after taxes (NOPAT)	2,207)	(4,485)	(7,863)	(9,312)	3,226)	3,339)

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).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in equity equivalents to net income (loss).

³ 2023 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 1,319 × 5.90% = 78

⁴ 2023 Calculation
Tax benefit of interest expense, net of capitalized interest = Adjusted interest expense, net of capitalized interest × Statutory income tax rate
= 2,144 × -19.35% = -415

⁵ Addition of after taxes interest expense to net income (loss).

⁶ 2023 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 233 × -19.35% = -45

⁷ Elimination of after taxes investment income.

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Item	Description	The company
NOPAT	Net operating profit after taxes is income from operations, but after removement of taxes calculated on cash basis that are relevant to operating income.	Carnival Corp. & plc NOPAT increased from 2021 to 2022 and from 2022 to 2023.

Carnival Corp. & plc, cash operating taxes calculation

US$ in millions

12 months ended:	Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019	Nov 30, 2018
Income tax expense (benefit), net	12)	13)	(21)	(17)	71)	54)
Less: Deferred income tax expense (benefit)	—)	—)	—)	—)	—)	—)
Add: Tax savings from interest expense, net of capitalized interest	(415)	(4)	4)	2)	6)	3)
Less: Tax imposed on investment income	(45)	—)	—)	—)	1)	—)
Cash operating taxes	(358)	10)	(17)	(15)	77)	57)

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).

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Item	Description	The company
Cash operating taxes	Cash operating taxes are estimated by adjusting income tax expense for changes in deferred taxes and tax benefit from the interest deduction.	Carnival Corp. & plc cash operating taxes increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Carnival Corp. & plc, invested capital calculation (financing approach)

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)
Long-term debt, excluding current portion	28,483)	31,953)	28,509)	22,130)	9,675)	7,897)
Operating lease liability¹	1,319)	1,335)	1,381)	1,424)	1,889)	363)
Total reported debt & leases	31,891)	35,881)	34,607)	28,380)	13,391)	10,686)
Shareholders’ equity	6,882)	7,065)	12,144)	20,555)	25,365)	24,443)
Net deferred tax (assets) liabilities²	—)	—)	—)	—)	—)	—)
Equity equivalents³	—)	—)	—)	—)	—)	—)
Accumulated other comprehensive (income) loss, net of tax⁴	1,939)	1,982)	1,502)	1,436)	2,066)	1,949)
Adjusted shareholders’ equity	8,821)	9,047)	13,646)	21,991)	27,431)	26,392)
Ships under construction⁵	(1,284)	(785)	(1,536)	(1,354)	(2,492)	(2,004)
Short-term investments⁶	—)	—)	(200)	—)	—)	—)
Invested capital	39,428)	44,143)	46,517)	49,017)	38,330)	35,074)

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).

¹ Addition of capitalized operating leases.

² Elimination of deferred taxes from assets and liabilities. See details »

³ Addition of equity equivalents to shareholders’ equity.

⁴ Removal of accumulated other comprehensive income.

⁵ Subtraction of ships under construction.

⁶ Subtraction of short-term investments.

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Item	Description	The company
Invested capital	Capital is an approximation of the economic book value of all cash invested in going-concern business activities.	Carnival Corp. & plc invested capital decreased from 2021 to 2022 and from 2022 to 2023.

Carnival Corp. & plc, cost of capital calculations

Nov 30, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	20,678)	20,678)	÷	51,725)	=	0.40	0.40	×	25.38%	=	10.15%
Debt³	29,728)	29,728)	÷	51,725)	=	0.57	0.57	×	5.74% × (1 – -19.35%)	=	3.94%
Operating lease liability⁴	1,319)	1,319)	÷	51,725)	=	0.03	0.03	×	5.90% × (1 – -19.35%)	=	0.18%
Total:	51,725)					1.00					14.26%

Based on: 10-K (reporting date: 2023-11-30).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Nov 30, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	14,322)	14,322)	÷	44,313)	=	0.32	0.32	×	25.38%	=	8.20%
Debt³	28,656)	28,656)	÷	44,313)	=	0.65	0.65	×	5.89% × (1 – -0.21%)	=	3.82%
Operating lease liability⁴	1,335)	1,335)	÷	44,313)	=	0.03	0.03	×	5.20% × (1 – -0.21%)	=	0.16%
Total:	44,313)					1.00					12.18%

Based on: 10-K (reporting date: 2022-11-30).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Nov 30, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	22,385)	22,385)	÷	56,229)	=	0.40	0.40	×	25.38%	=	10.10%
Debt³	32,463)	32,463)	÷	56,229)	=	0.58	0.58	×	5.44% × (1 – 0.22%)	=	3.13%
Operating lease liability⁴	1,381)	1,381)	÷	56,229)	=	0.02	0.02	×	3.80% × (1 – 0.22%)	=	0.09%
Total:	56,229)					1.00					13.33%

Based on: 10-K (reporting date: 2021-11-30).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Nov 30, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	20,897)	20,897)	÷	49,991)	=	0.42	0.42	×	25.38%	=	10.61%
Debt³	27,670)	27,670)	÷	49,991)	=	0.55	0.55	×	7.07% × (1 – 0.17%)	=	3.91%
Operating lease liability⁴	1,424)	1,424)	÷	49,991)	=	0.03	0.03	×	3.40% × (1 – 0.17%)	=	0.10%
Total:	49,991)					1.00					14.61%

Based on: 10-K (reporting date: 2020-11-30).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Nov 30, 2019

	Capital (fair value)¹	Weights					Cost of capital
Equity²	33,023)	33,023)	÷	46,942)	=	0.70	0.70	×	25.38%	=	17.85%
Debt³	12,030)	12,030)	÷	46,942)	=	0.26	0.26	×	3.10% × (1 – 2.32%)	=	0.78%
Operating lease liability⁴	1,889)	1,889)	÷	46,942)	=	0.04	0.04	×	3.10% × (1 – 2.32%)	=	0.12%
Total:	46,942)					1.00					18.75%

Based on: 10-K (reporting date: 2019-11-30).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Nov 30, 2018

	Capital (fair value)¹	Weights					Cost of capital
Equity²	40,529)	40,529)	÷	51,417)	=	0.79	0.79	×	25.38%	=	20.01%
Debt³	10,526)	10,526)	÷	51,417)	=	0.20	0.20	×	2.80% × (1 – 1.71%)	=	0.56%
Operating lease liability⁴	363)	363)	÷	51,417)	=	0.01	0.01	×	2.80% × (1 – 1.71%)	=	0.02%
Total:	51,417)					1.00					20.59%

Based on: 10-K (reporting date: 2018-11-30).

¹ US$ in millions

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Carnival Corp. & plc, economic spread ratio calculation, comparison to benchmarks

	Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019	Nov 30, 2018
Selected Financial Data (US$ in millions)
Economic profit¹	(3,417)	(9,860)	(14,064)	(16,475)	(3,962)	(3,882)
Invested capital²	39,428)	44,143)	46,517)	49,017)	38,330)	35,074)
Performance Ratio
Economic spread ratio³	-8.67%	-22.34%	-30.23%	-33.61%	-10.34%	-11.07%
Benchmarks
Economic Spread Ratio, Competitors⁴
Airbnb Inc.	13.48%	14.90%	-7.36%	-113.66%	—	—
Booking Holdings Inc.	17.30%	6.39%	-11.01%	-10.71%	30.94%	—
Chipotle Mexican Grill Inc.	8.02%	3.99%	-0.70%	-2.72%	-2.50%	—
McDonald’s Corp.	8.95%	6.16%	8.57%	4.30%	8.54%	—
Starbucks Corp.	9.55%	7.13%	8.39%	-4.34%	0.08%	36.43%

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).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2023 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -3,417 ÷ 39,428 = -8.67%

⁴ Click competitor name to see calculations.

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Performance ratio	Description	The company
Economic spread ratio	The ratio of economic profit to invested capital, also equal to the difference between return on invested capital (ROIC) and cost of capital.	Carnival Corp. & plc economic spread ratio improved from 2021 to 2022 and from 2022 to 2023.

Carnival Corp. & plc, economic profit margin calculation, comparison to benchmarks

	Nov 30, 2023	Nov 30, 2022	Nov 30, 2021	Nov 30, 2020	Nov 30, 2019	Nov 30, 2018
Selected Financial Data (US$ in millions)
Economic profit¹	(3,417)	(9,860)	(14,064)	(16,475)	(3,962)	(3,882)
Revenues	21,593)	12,168)	1,908)	5,595)	20,825)	18,881)
Performance Ratio
Economic profit margin²	-15.83%	-81.04%	-737.12%	-294.46%	-19.02%	-20.56%
Benchmarks
Economic Profit Margin, Competitors³
Airbnb Inc.	7.73%	11.76%	-6.62%	-174.02%	—	—
Booking Holdings Inc.	9.24%	5.10%	-15.08%	-22.94%	22.64%	—
Chipotle Mexican Grill Inc.	4.87%	2.49%	-0.50%	-2.23%	-1.88%	—
McDonald’s Corp.	17.57%	12.06%	17.60%	10.46%	17.26%	—
Starbucks Corp.	5.91%	4.54%	6.84%	-4.23%	0.06%	30.59%

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).

¹ Economic profit. See details »

² 2023 Calculation
Economic profit margin = 100 × Economic profit ÷ Revenues
= 100 × -3,417 ÷ 21,593 = -15.83%

³ Click competitor name to see calculations.

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Performance ratio	Description	The company
Economic profit margin	The ratio of economic profit to sales. It is the company profit margin covering income efficiency and asset management. Economic profit margin is not biased in favor of capital-intensive business models, because any added capital is a cost to the economic profit margin.	Carnival Corp. & plc economic profit margin improved from 2021 to 2022 and from 2022 to 2023.

Carnival Corp. & plc (NYSE:CCL)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin