Carnival Corp. & plc (NYSE:CCL)

Inventory Turnover

The inventory turnover ratio shows variability over the years, starting at 24.64 in 2018, increasing to a peak of 30.23 in 2019, then dropping sharply to 13.08 in 2021 before recovering to stable levels around 27 by 2022 and 2023. This indicates fluctuating efficiency in inventory management, with a significant decline during 2021, possibly due to operational challenges, followed by a rebound.

Receivables Turnover

The receivables turnover ratio decreases markedly from 52.74 in 2018 to a low of 7.76 in 2021, then improves to 38.84 in 2023. This trend suggests slower collections on receivables during the middle years, impacting liquidity, with partial recovery in the most recent periods.

Payables Turnover

Payables turnover shows a generally declining trend from 15.19 in 2018 to a low of 5.84 in 2021, followed by a gradual increase to 12.26 in 2023. The lower turnover in 2021 implies extended payment periods to suppliers, potentially as a cash preservation measure during that year.

Working Capital Turnover

Data on working capital turnover is limited, recorded only for 2020 at 2.98. Without additional data points, no trend analysis can be conducted.

Average Inventory Processing Period

Average inventory days fluctuate, starting at 15 days in 2018, decreasing to 12 in 2019, then rising to 28 in 2021 before returning to 13 in later years. The rise in 2021 indicates slower inventory movement, aligning with the lower inventory turnover that year.

Average Receivable Collection Period

Receivable collection days nearly triple from 7 in 2018 to 18 in 2020 and peak at 47 in 2021, before reducing substantially to 9 by 2023. This implies significantly delayed collections during 2020–2021, impacting cash inflow, with subsequent improvement.

Operating Cycle

The operating cycle extends from 22 days in 2018 to a high of 75 days in 2021, then decreases back to 22 by 2023. The extended cycle in 2021 reflects slower inventory processing and receivables collection, indicating reduced operational efficiency during that year.

Average Payables Payment Period

The payables payment period decreases from 24 days in 2018 to 21 in 2019, then increases sharply to 62 in 2021 before falling back to 30 days by 2023. The peak suggests the company delayed payments to suppliers considerably in 2021, potentially to conserve cash.

Cash Conversion Cycle

The cash conversion cycle is negative in most years except for 2020 and 2021, where it turns positive, reaching 13 days in 2021. The negative values in 2018, 2019, 2022, and 2023 indicate efficient cash management with payables financing outpacing receivables and inventory periods. The positive cycle during 2020 and 2021 reflects reduced liquidity efficiency during these years.

Cruise and Tour Operating Expenses

The operating expenses exhibit a fluctuating trend over the six-year period. There is an initial increase from 11,089 million US dollars in 2018 to 12,909 million in 2019. A significant decline occurs in 2020 and 2021, reaching a low of 4,655 million US dollars in 2021. Subsequently, expenses rise sharply in 2022 and continue increasing in 2023, surpassing the pre-2019 levels to reach 14,317 million US dollars. This trend suggests a considerable impact on operations during 2020 and 2021, with a strong recovery and expansion thereafter.

Inventories

Inventory levels demonstrate moderate variability, decreasing from 450 million US dollars in 2018 to 335 million in 2020, followed by modest increases to 356 million in 2021 and further growth through 2022 and 2023, culminating at 528 million US dollars. This indicates a gradual buildup of inventory in the most recent years, possibly aligning with increased operating activity or strategic stockpiling.

Inventory Turnover Ratio

The inventory turnover ratio displays notable variation, beginning at 24.64 in 2018 and peaking at 30.23 in 2019, which reflects efficient inventory management during these years. A sharp decline occurs in 2021, dropping to 13.08, which may imply slower inventory movement or increased stock relative to sales. However, the ratio recovers in 2022 and 2023 to levels around 27, suggesting improved inventory efficiency consistent with the rising inventories.

The financial data reflects notable fluctuations in key metrics over the analyzed period. Revenues exhibit a pronounced decline from 2018 through 2021, reaching a low point in 2021, followed by a robust recovery in 2022 and 2023, surpassing pre-decline levels by 2023. This suggests an initial period of significant downturn, possibly due to external factors, with subsequent restoration of business activity and growth.

Trade and other receivables, net, show a similar pattern, with values decreasing from 2019 to 2021 and then increasing in the following years. The decrease in receivables during the downturn period may indicate tighter credit control or reduced sales on credit, while the increase corresponds with rising revenues, reflecting normal business recovery.

Revenues (US$ in millions)

There is a decline from 18,881 in 2018 to 1,908 in 2021, followed by an increase to 21,593 in 2023, indicating a significant drop and subsequent strong recovery.

Trade and other receivables, net (US$ in millions)

Values decrease from 444 million in 2019 to 246 million in 2021, then rise to 556 million in 2023, mirroring the revenue trend but with less volatility.

Receivables turnover (ratio)

This ratio declines sharply from 52.74 in 2018 to a low of 7.76 in 2021, indicating slower collection of receivables during the downturn. The turnover improves thereafter, reaching 38.84 in 2023, suggesting better efficiency in managing receivables as operations recover.

Overall, the trends depict a period of operational stress and disrupted revenue generation culminating in 2021, coupled with a reduced ability or altered policy in receivables collection. The subsequent years showcase a recovery phase with growing revenues and enhanced turnover efficiency, suggesting a return to more favorable operating conditions and effective asset management.

Cruise and tour operating expenses

The operating expenses for cruise and tour activities experienced fluctuations over the reported periods. Starting at $11,089 million in 2018, expenses increased to $12,909 million in 2019, indicating rising operational costs. A significant decline occurred in 2020, dropping to $8,245 million, followed by a further reduction to $4,655 million in 2021. This sharp decrease likely reflects operational disruptions. However, a strong rebound occurred in 2022 and 2023, with expenses rising to $11,757 million and then $14,317 million, surpassing pre-2020 levels.

Accounts payable

Accounts payable values showed a gradual increase over time, beginning at $730 million in 2018 and rising to $756 million in 2019. There was a decline to $624 million in 2020, but the balance increased steadily afterward, reaching $797 million in 2021, $1,050 million in 2022, and $1,168 million in 2023. This trend suggests growing obligations to suppliers or vendors, especially in the last two years.

Payables turnover ratio

The payables turnover ratio, which measures how quickly the company settles its payables, was relatively stable at 15.19 and 17.08 in 2018 and 2019, respectively. The ratio declined significantly in 2020 to 13.21 and further to 5.84 in 2021, indicating slower payment cycles. Recovery was observed in 2022 and 2023, where the ratio increased to 11.2 and 12.26, respectively, suggesting improved efficiency in payable management but still below the pre-2020 levels.

Working Capital

The working capital values from 2018 to 2023 show significant fluctuations. Initially, the company experienced negative working capital of -6979 million USD in 2018, which marginally decreased to -7068 million USD in 2019. A notable change occurred in 2020, where working capital turned positive, reaching 1877 million USD. However, this positive movement was not sustained, as working capital again became negative, dropping to -275 million USD in 2021, further declining to -3113 million USD in 2022, and then sharply to -6215 million USD in 2023. This pattern indicates considerable instability and potential liquidity challenges over the six-year period.

Revenues

The revenue data exhibit considerable volatility across the analyzed years. Revenue increased from 18881 million USD in 2018 to 20825 million USD in 2019, suggesting growth. In 2020, revenues fell drastically to 5595 million USD, reflecting a severe contraction. Revenues plunged further to 1908 million USD in 2021, representing the lowest point within the timeframe. Recovery began in 2022 with revenues rising to 12168 million USD, and the trend continued positively in 2023, reaching 21593 million USD, surpassing the pre-2020 levels. This cyclical trend suggests the company faced significant operational disruptions impacting revenue, followed by a marked recovery phase.

Working Capital Turnover

Working capital turnover data is only available for 2020, standing at 2.98. The absence of comparable figures for other years limits the ability to analyze trends or draw conclusions regarding efficiency in utilizing working capital during other periods.

Insights

The data reflect considerable operational and financial instability between 2018 and 2023. The sharp decline in revenues during 2020 and 2021, concurrent with pronounced fluctuations in working capital, suggest challenges likely related to external disruptive events or internal restructuring affecting liquidity and sales performance. The recovery in revenues seen in 2022 and 2023 indicates successful measures to restore business volume. However, the persistent negative working capital in the latter years raises concerns about short-term financial health and the management of current assets and liabilities. Overall, the financial trends depict a company undergoing a significant crisis followed by gradual recovery, though liquidity management remains an area requiring attention.

Inventory Turnover

The inventory turnover ratio exhibits notable fluctuations over the observed period. It initially increased from 24.64 in 2018 to a peak of 30.23 in 2019, indicating a higher efficiency in managing inventory relative to sales during that year. However, a significant decline occurred in 2020 to 24.61, followed by a more pronounced drop to 13.08 in 2021. This decrease suggests a substantial reduction in turnover efficiency, potentially reflective of operational challenges or reduced sales activity. Subsequently, the turnover ratio rebounded sharply to 27.47 in 2022 and maintained a similar level at 27.12 in 2023, signaling a recovery in inventory management performance toward pre-2020 levels.

Average Inventory Processing Period

The average inventory processing period, shown in days, inversely reflects the trends observed in inventory turnover. It decreased from 15 days in 2018 to 12 days in 2019, consistent with a higher turnover ratio indicating faster inventory turnover. In 2020, the period increased back to 15 days and then sharply increased to 28 days in 2021, which corresponds to the lowered inventory turnover, implying slower inventory processing and possible accumulation of stock. In 2022, the average processing period decreased substantially to 13 days and remained stable in 2023, aligning with the recovery observed in inventory turnover metrics.

Overall Assessment

The data reflects a period of operational disruption around 2020 and 2021, as shown by the reduced inventory turnover ratio and extended average processing period. This disruption was followed by a marked improvement and stabilization in inventory management practices in the subsequent years, returning near levels observed prior to 2020. The inverse relationship between inventory turnover and average processing period throughout the timeline demonstrates consistent internal dynamics in inventory control efficiency.

Receivables Turnover Ratio

The receivables turnover ratio exhibits a significant fluctuation over the observed periods. It starts at a high value of 52.74 in 2018, indicating efficient collection of receivables. This efficiency declines gradually to 46.9 in 2019 and then dramatically drops to its lowest point at 7.76 in 2021. Post-2021, the ratio improves to 30.81 in 2022 and further to 38.84 in 2023, suggesting a recovery trend in receivables management though not returning to the initial high levels.

Average Receivable Collection Period

The average receivable collection period inversely mirrors the trend of the receivables turnover ratio, beginning at 7 days in 2018 and slightly increasing to 8 days in 2019. There is a sharp increase to 18 days in 2020 and a peak at 47 days in 2021, which indicates a considerable slowdown in collection efficiency. Following this, the collection period reduces notably to 12 days in 2022 and further to 9 days in 2023, showing an improvement and movement towards faster receivable collections compared to the peak delay in 2021.

Overall Analysis

There is a clear correlation between the receivables turnover ratio and the average receivable collection period, reflecting the company’s fluctuating efficiency in accounts receivable management. The period around 2020 and 2021 reveals a marked deterioration in receivables management, possibly indicating challenges in collections or changes in credit policies. However, the subsequent years demonstrate a positive trend toward regaining better control over receivables, enhancing liquidity and operational efficiency.

Average Inventory Processing Period

The average inventory processing period demonstrates fluctuations over the six-year span. Initially, it decreased from 15 days in 2018 to 12 days in 2019, before rising again to 15 days in 2020. A significant increase occurred in 2021, reaching 28 days, followed by a sharp decrease to 13 days in both 2022 and 2023. This indicates variability in inventory management efficiency, with a notable disruption in 2021 that was subsequently corrected.

Average Receivable Collection Period

The average receivable collection period exhibits a generally volatile pattern. It rose slightly from 7 days in 2018 to 8 days in 2019, then spiked considerably to 18 days in 2020, and further surged to 47 days in 2021. However, a strong recovery is evident as this period declined to 12 days in 2022 and further decreased to 9 days in 2023. This trend suggests challenges in receivables management around 2020-2021, with marked improvement in subsequent years.

Operating Cycle

The operating cycle, representing the combined duration of inventory processing and receivable collection, follows a similar pattern to the components. It decreased slightly from 22 days in 2018 to 20 days in 2019 but increased significantly to 33 days in 2020 and peaked at 75 days in 2021. This peak aligns with the extended inventory and receivables periods observed during that year. The operating cycle then reduced substantially to 25 days in 2022 and returned almost to the initial level of 22 days in 2023, indicating a restoration of operational efficiency.

Overall Insights

The data reflect considerable operational disruptions around 2020 and 2021, likely impacting inventory turnover and receivables collection negatively, resulting in an extended operating cycle. Following this period, there is clear evidence of improved efficiency, with key operational periods returning close to or below pre-disruption levels by 2023. This suggests successful adjustments in working capital management in the latter years.

Payables Turnover Ratio

The payables turnover ratio shows considerable fluctuations over the six-year period. Starting at 15.19 in 2018, the ratio increased to 17.08 in 2019, indicating faster payment to suppliers. However, it then declined significantly to 13.21 in 2020 and dropped sharply to 5.84 in 2021, suggesting a considerable slowdown in payables turnover. In subsequent years, the ratio recovered to 11.2 in 2022 and slightly improved to 12.26 in 2023, indicating partial restoration of payment efficiency but remaining below pre-2020 levels.

Average Payables Payment Period

The average payables payment period exhibits an inverse trend relative to the turnover ratio, which is consistent with their financial relationship. The period decreased from 24 days in 2018 to 21 days in 2019, reflecting faster payments. This period then lengthened to 28 days in 2020, followed by a sharp increase to 62 days in 2021, indicating a substantial delay in settling payables. In 2022, the payment period shortened significantly to 33 days and slightly decreased further to 30 days in 2023, denoting a trend back toward more timely payments but still not reaching the efficient levels seen before 2020.

Overall Observations

The data reveals a pronounced disruption in payables management during the 2020-2021 timeframe, likely reflecting external challenges or strategic shifts impacting liquidity and payment practices. The recovery evident in 2022 and 2023 suggests corrective actions or improved conditions facilitating better payables turnover and shorter payment periods, though the metrics have not fully returned to the pre-2019 status. Monitoring these trends is crucial to understanding supplier relationship dynamics and cash flow management.

Average Inventory Processing Period

The average inventory processing period experienced fluctuations over the years. It began at 15 days in 2018, decreased to 12 days in 2019, then increased back to 15 days in 2020. A significant rise occurred in 2021, reaching 28 days. Following this peak, the period shortened substantially to 13 days in both 2022 and 2023, indicating improved inventory turnover in the final two years.

Average Receivable Collection Period

The average receivable collection period showed notable variability. It started at a low of 7 days in 2018 and increased slightly to 8 days in 2019. A sharp increase was observed in 2020, with the period rising to 18 days and peaking at 47 days in 2021. Subsequently, the company managed to reduce this period to 12 days in 2022 and further to 9 days in 2023, demonstrating enhanced efficiency in receivables collection after the 2021 peak.

Average Payables Payment Period

The average payables payment period displayed a generally increasing trend until 2021, beginning at 24 days in 2018 and rising to 62 days by 2021. After this peak, the payables period decreased to 33 days in 2022 and further to 30 days in 2023, indicating a faster rate of settling payables in the last two years compared to the preceding period.

Cash Conversion Cycle

The cash conversion cycle remained negative or low for the initial years, starting at -2 days in 2018 and -1 day in 2019, then increased to positive territory at 5 days in 2020 and further to 13 days in 2021, signaling a longer duration to convert investments in inventory and receivables into cash. However, this trend reversed sharply in 2022 and 2023, with the cycle returning to a negative value of -8 days, reflecting improved overall liquidity management and operational efficiency towards the end of the observed period.