Carnival Corp. & plc (NYSE:CCL)

Gross Profit Margin

The gross profit margin initially demonstrated stability, maintaining levels above 38% until early 2020. Subsequently, there was a significant decline, reaching negative values by November 2020, with the sharpest downturn observed between August 2020 and November 2020 where margin plummeted to -531.85%. This negative trend continued severely into early 2021, with peaks of negative margins exceeding -2300%. From mid-2021 onwards, recovery commenced gradually, with margins moving into positive territory by early 2023 and continuing an upward trajectory, reaching approximately 34.81% by February 2024. Overall, this indicates a substantial disruption followed by a gradual recuperation over the observed period.

Operating Profit Margin

This metric mirrored the trend observed in gross profit margin, holding steady above 15% prior to 2020. A notable decrease occurred starting in early 2020, plunging to large negative values by late 2020 and early 2021, with an extreme trough near -5010% in February 2021. Negative margins persisted through much of 2021 and 2022, though with decreasing severity, before turning positive again around late 2023 and early 2024, reaching approximately 10.65%. This pattern signifies a critical operational profitability decline likely linked to extraordinary circumstances, followed by gradual operational recovery.

Net Profit Margin

Net profit margin showed a consistent positive range of approximately 15-17% up to early 2020. It then experienced a pronounced drop into negative figures from mid-2020, with the lowest point surpassing -6400% in early 2021. The margin remained substantially negative through 2021 and much of 2022, though the magnitude of losses lessened progressively. A return to near breakeven was noted by late 2023, with slight positive margins emerging by early 2024. This reflects severe net profitability challenges, followed by modest signs of net income recovery at the end of the period observed.

Return on Equity (ROE)

ROE sustained a moderate positive range of approximately 11-13% until the end of 2019. Subsequently, it declined sharply into negative territory, reaching extremely low values around -111% in late 2021. Negative returns on equity persisted until late 2023, though the negative magnitude reduced notably during this interval. By early 2024, ROE improved to slightly positive levels around 6%, indicating a recovery in generating returns for equity holders after a significant loss period.

Return on Assets (ROA)

ROA also remained positive, near 6-7%, up to early 2020. It then fell to negative values in the subsequent quarters, with the lowest levels between -19% and -17% throughout 2020 and 2021. Despite this adverse performance persisting in 2022, the negative impact gradually lessened over time. From late 2023, ROA approached neutrality and turned slightly positive by early 2024. This suggests an initial decrease in asset efficiency and profitability, followed by progressive recovery.

The financial data reveals several significant trends in the company's quarterly performance over the period analyzed. Revenues exhibited a general upward trajectory from early 2018 through late 2019, peaking in the August 2019 quarter before experiencing a severe decline starting in early 2020. This downturn coincides with the onset of a challenging market environment, as indicated by a dramatic drop in revenues to very low levels during mid-2020. From 2021 onwards, revenues began to recover steadily, showing marked improvement quarter over quarter through to early 2024, though not yet surpassing the pre-2020 peak levels.

Gross profit (loss) followed a somewhat parallel pattern with revenues, showing strong positive values and growth through 2019, reaching the highest figures in the third quarter of 2019. However, a sharp contraction is noticeable beginning in the first quarter of 2020, with losses reported and persisting for several quarters. The gross profit margin during this period turned negative, reflecting significant operating challenges and inefficiencies relative to revenues. The margin reached extreme negative levels especially in late 2020 and early 2021, underscoring substantial gross losses in relation to sales.

Following this period of losses, gross profit margin displayed gradual improvement starting mid-2021, transitioning from highly negative figures towards positive margins by late 2022. This recovery aligns with increases in gross profit and revenues, suggesting restoration of profitability and cost management effectiveness. By early 2024, the gross profit margin approached levels close to those seen prior to the downturn, with positive percentages in the mid-30s, indicating a return to more normalized operational conditions.

Revenue Trends

Initial growth through 2018 and 2019, followed by a steep decline in 2020, with partial recovery from 2021 to early 2024.

Gross Profit Trends

Strong positive gross profit prior to 2020, severe losses during 2020 and early 2021, recovery beginning mid-2021 onward.

Gross Profit Margin Trends

Margins hovered around high 30% levels pre-2020, plunged to extreme negative values during 2020-2021, then steadily improved to mid-30% by early 2024.

Operational Insights

The data suggests a significant disruption starting in early 2020, causing decreased revenues and deep losses at the gross profit level. Subsequent quarters showed gradual improvements, indicating successful adaptation or market recovery efforts.

The financial data for the analyzed periods presents several important patterns and trends in the company's operational performance and revenue generation.

Operating Income (Loss)

Operating income shows significant volatility over the periods. From February 2018 to November 2019, operating income remained generally positive with peaks notably in August 2018 and August 2019, exceeding $1.8 billion. However, starting February 2020, a sharp decline occurred, resulting in substantial losses through 2020 and much of 2021. This downturn likely corresponds with external adverse factors impacting operations. The losses began to narrow gradually after November 2021 but remained negative until early 2023. More recently, starting February 2023, operating income returned to positive territory, reaching over $1.6 billion by August 2023 before decreasing moderately in the final reported period.

Revenues

Revenues experienced growth from 2018 through mid-2019, peaking at $6.5 billion in August 2019. A sharp decline began in February 2020, with revenues dropping drastically, bottoming out at $26 to $50 million through much of 2021. Beginning in 2022, revenues demonstrated a recovery trend, increasing steadily each quarter to surpass $6.8 billion in August 2023. The later periods exhibit a robust recovery, though the revenue in the last quarter of the dataset slightly decreased but remained above $5.3 billion.

Operating Profit Margin

The operating profit margin, which was stable and positive from mid-2018 through late 2019 (approximately 15% to 17.6%), sharply deteriorated starting in early 2020. The margin plunged into extreme negative territory during 2020 and 2021, reaching values as low as -5010%. This represents a period of acute operational losses relative to revenue. From 2022 onward, the margin began to recover steadily, improving from negative double digits toward positive figures by early 2024, where it reached above 10% again. This suggests improving operational efficiency and profitability aligned with increasing revenues.

In summary, the data depicts a company facing a severe disruption beginning in early 2020, affecting both revenue and profitability profoundly. This disruption led to multi-quarter losses and ultralow profit margins. However, from 2022 onwards, there is a clear recovery trajectory in both revenue and operating results, culminating in a return to positive operating income and healthy profit margins by early 2024. The overall trend highlights resilience and a significant operational rebound following a period of pronounced financial stress.

The financial data over the analyzed periods reflects significant volatility and structural shifts in performance indicators.

Net Income (Loss)

The net income exhibits considerable fluctuations with a general downward trend from fiscal year 2018 through early 2020, peaking at a high point around August 2018 with 1,707 million US$. Starting February 2020, net income turns negative, reaching the most substantial deficits during mid-2020, notably -4,374 million US$ in May 2020. Following this period, losses persist but gradually moderate, alternating between negative and marginally positive outcomes by early 2024. The overall trajectory indicates a recovery phase post-2020 disruption but without returning to pre-2020 profitability levels.

Revenues

Revenues demonstrate relative stability through 2018 and 2019, with values generally oscillating between approximately 4,200 and 6,500 million US$. A sharp decline occurs in May 2020 and subsequent quarters, hitting a low point of 31 million US$ in August 2020. Beginning in 2021, revenues show a steady recovery trend, increasing progressively, reaching a peak of 6,854 million US$ in August 2023 before stabilizing slightly above 5,400 million US$ by February 2024. This pattern suggests that while revenues were severely impacted by an external disruption around early 2020, recovery efforts have effectively restored top-line performance over the following years.

Net Profit Margin

Profit margins maintain a positive and relatively consistent level prior to 2020, ranging roughly from 14% to 17% in early 2019. Starting February 2020, margins plunge into negative territory, with exceptionally large negative margins reported in subsequent periods, such as -1,373.56% in November 2020 and an extreme low of -6,426.76% in May 2021. These figures illustrate severe operational losses and potentially the effect of one-time extraordinary items or impairments. Following mid-2021, the negative margins begin to narrow steadily towards zero, eventually approaching slight positive territory near February 2024. However, full normalization to earlier margin levels is not observed within the timeframe.

In summary, the data shows a company severely impacted during the 2020 period, reflected in extreme losses and plummeting revenues and profit margins. A recovery phase is apparent from 2021 onward with gradual improvements in revenues and net profitability, though full restoration to pre-2020 levels remains incomplete by early 2024. The results likely reflect the influence of significant external shocks and a prolonged period of operational challenge, followed by ongoing stabilization efforts.

Analysis of the financial trends reveals notable fluctuations and patterns across the observed periods.

Net Income (Loss)

Net income demonstrated a generally positive trend from early 2018 through late 2019, peaking at 1,780 million US dollars in August 2019. However, starting in early 2020, there was a significant downturn with net losses recorded consecutively through 2022. The largest losses occurred in May 2020 at -4,374 million US dollars and remained substantially negative thereafter, with only minor improvements. By the close of the period in February 2024, net income remained negative at -214 million US dollars, indicating difficulty in regaining profitability.

Shareholders’ Equity

Shareholders’ equity showed a declining trajectory over the entire period. Beginning at approximately 24,382 million US dollars in February 2018, the equity value remained relatively stable into early 2019, peaking slightly in August 2019 at 25,365 million US dollars. From that point forward, a consistent reduction occurred, accelerating after early 2020. By February 2024, shareholders’ equity had decreased to 6,682 million US dollars, reflecting substantial erosion of the equity base, which aligns with sustained net losses and likely reflects asset impairments or share repurchases.

Return on Equity (ROE)

ROE showed positive values around 12-13% during the early periods in 2018 and 2019, correlating with profitable operations. However, starting in early 2020, ROE plunged into negative territory and worsened sequentially, reaching profound lows exceeding -100% by late 2021. This severe downturn in profitability strength continued through early 2023, followed by a gradual recovery moving towards small negative values and finally positive territory again at 6.06% by February 2024. This pattern indicates a significant crisis impacting returns on invested equity, with signs of slight recovery emerging at the end of the observation period.

In summary, the data illustrate a period of relative stability and profitability until 2019, followed by a sharp decline in earnings and equity coinciding with early 2020 events. The company experienced large net losses, a pronounced drop in equity, and severely negative ROE for several years. The most recent quarters suggest a tentative improvement in profitability metrics, although equity remains significantly diminished compared to earlier periods.

The data reveals notable fluctuations in net income (loss) and return on assets (ROA) over the examined periods. Initially, net income demonstrates a generally positive trend with significant peaks, reaching as high as 1780 million US dollars in August 2018. However, starting from February 2020, there is a marked decline, with net income turning negative and reaching substantial losses by May 2020 (-4374 million US dollars). These negative results persist through late 2021 and into the early part of the next decade, reflecting a period of financial difficulty.

Total assets exhibit a gradual increasing trend from February 2018 to November 2020, growing from 41,441 million US dollars to a peak of 53,593 million US dollars. Following this peak, total assets show a slight decline and then largely stabilize around the 50,000 to 53,000 million US dollars range through the remainder of the data set, ending at approximately 49,761 million US dollars by February 2024.

The ROA figures, available from August 2018 onward, initially reflect a strong return profile with values above 6%, peaking around 7.4% in August 2018 and remaining positive through early 2019. From February 2020, the ROA sharply declines into negative territory, reaching a low of approximately -19.97% by November 2020. Although the negative trend persists over the subsequent years, the ROA gradually recovers toward zero and slightly positive values by early 2024.

Net Income (Loss)

Strong positive results up to late 2019 with peaks in mid-2018 and mid-2019; abrupt and sustained losses beginning in early 2020; partial recovery evident by early 2023 but still negative or near zero in recent quarters.

Total Assets

Overall upward trend from 2018 to late 2020; stabilization and minor decline thereafter; maintaining a range near historical highs through early 2024.

Return on Assets (ROA)

Positive returns up to early 2020, peaking above 7%; sharp drop into strong negative returns starting in early 2020; gradual improvement towards breakeven and slight positive return by 2024.

In summary, the data indicates that the company experienced a strong financial performance up to late 2019, followed by a severe downturn beginning in early 2020 likely reflecting external economic disruptions. Asset levels remained robust despite income challenges. The improving ROA and net income figures in the most recent periods may signal early signs of operational recovery.