Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Carnival Corp. & plc, short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-02-29), 10-K (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-Q (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-K (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-Q (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-K (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-Q (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-K (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-Q (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-K (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-02-28).
The analysis of the financial ratio trends reveals significant fluctuations and gradual recoveries in various operational efficiency metrics over the examined period.
- Inventory Turnover
- The inventory turnover ratio demonstrates variability with a notable dip from early 2021, reaching a low point around mid-2021, followed by a consistent upward trend through early 2024. This indicates improved efficiency in inventory management after a period of slower disbursement of goods.
- Receivables Turnover
- The receivables turnover ratio experienced a steep decline beginning in early 2020, bottoming out in mid-2021, which implies slower collection of receivables during that period. From late 2021 onward, a steady recovery is observed, signaling improved cash inflows from customers. Despite this recovery, the ratio remains below pre-2020 levels by early 2024.
- Payables Turnover
- The payables turnover ratio fluctuated considerably, with a marked decrease in early 2020, suggesting longer payment terms or delayed payments to suppliers. A gradual rise occurred post mid-2021, indicating a return toward more regular payment cycles. Nonetheless, the ratio remains somewhat subdued compared to the pre-pandemic period.
- Working Capital Turnover
- Limited data is available for working capital turnover, with values appearing only during 2020 and 2021. The ratio exhibits a sharp decline into 2021, signaling decreased efficiency in utilizing working capital during that period, but insufficient data precludes a definitive trend analysis.
- Average Inventory Processing Period
- Inventory processing days shortened notably from early 2019 through 2020, reaching minimal levels, followed by a substantial lengthening in 2021 and early 2022, which then decreased steadily to stabilize around mid-teens by early 2024. This reflects fluctuations in inventory holding periods, possibly due to operational adjustments or demand changes.
- Average Receivable Collection Period
- A marked increase in the average collection period is evident starting in early 2020, peaking dramatically in mid-2021. This suggests significant delays in collecting receivables, which may have impacted liquidity. A pronounced improvement follows from late 2021, with collection days returning near pre-crisis levels by early 2024.
- Operating Cycle
- The operating cycle lengthened substantially beginning in early 2020, driven primarily by delayed receivables collection, with the peak cycle extending over 500 days. This cycle reduced significantly post-2021, approaching levels observed before 2020, indicating restored operational efficiency and cash flow timing.
- Average Payables Payment Period
- The payables payment period increased sharply in early 2020, indicating extended payment terms or delays, peaking around mid-2021. Thereafter, it declined gradually, suggesting a normalization in supplier payments, although it remains slightly elevated relative to the earliest periods.
- Cash Conversion Cycle
- The cash conversion cycle initially remained near zero or negative, indicating a favorable cash flow position. However, it rose dramatically in early 2021, reflecting strained liquidity due to delayed receivables and extended payables. Significant improvement occurs from late 2021, with the cycle returning to slightly negative values by early 2024, highlighting restored operational cash efficiency.
Turnover Ratios
Average No. Days
Inventory Turnover
Carnival Corp. & plc, inventory turnover calculation (quarterly data)
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | Feb 28, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cruise and tour operating expenses | 3,704) | 3,628) | 3,921) | 3,458) | 3,310) | 3,666) | 3,378) | 2,683) | 2,030) | 1,823) | 1,616) | 681) | 535) | 689) | 1,549) | 2,484) | 3,523) | 3,076) | 3,532) | 3,159) | 3,142) | |||||||
| Inventories | 531) | 528) | 483) | 438) | 448) | 428) | 420) | 425) | 392) | 356) | 322) | 308) | 312) | 335) | 349) | 362) | 440) | 427) | 482) | 501) | 444) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Inventory turnover1 | 27.70 | 27.12 | 29.72 | 31.53 | 29.10 | 27.47 | 23.60 | 19.18 | 15.69 | 13.08 | 10.93 | 11.21 | 16.85 | 24.61 | 30.46 | 34.85 | 30.20 | 30.23 | 26.09 | 23.95 | 25.95 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | 197.22 | 185.34 | 175.86 | 191.68 | 194.58 | 184.27 | 191.96 | 214.37 | 203.97 | 177.91 | 195.78 | 213.29 | 211.26 | — | — | — | — | — | — | — | — | |||||||
| McDonald’s Corp. | 181.22 | 155.76 | 168.52 | 146.30 | 142.62 | 141.94 | 175.32 | 183.32 | 165.10 | 144.74 | 156.70 | 159.38 | 155.54 | — | — | — | — | — | — | — | — | |||||||
| Starbucks Corp. | 16.09 | 14.46 | 12.95 | 12.54 | 11.70 | 10.97 | 10.97 | 11.79 | 13.24 | 12.89 | 12.64 | 12.25 | 12.45 | 11.90 | 11.80 | 13.06 | 13.72 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-02-29), 10-K (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-Q (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-K (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-Q (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-K (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-Q (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-K (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-Q (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-K (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-02-28).
1 Q1 2024 Calculation
Inventory turnover
= (Cruise and tour operating expensesQ1 2024
+ Cruise and tour operating expensesQ4 2023
+ Cruise and tour operating expensesQ3 2023
+ Cruise and tour operating expensesQ2 2023)
÷ Inventories
= (3,704 + 3,628 + 3,921 + 3,458)
÷ 531 = 27.70
2 Click competitor name to see calculations.
- Operating Expenses
- Over the period analyzed, cruise and tour operating expenses generally demonstrated significant fluctuation, with notable periods of decline and recovery. Initially, expenses ranged around 3,100 to 3,500 million USD in early 2019, then experienced a sharp decrease starting in early 2020, reaching a low point of 535 million USD in February 2021. This substantial reduction coincides with the onset of global disruptions likely affecting operations. Subsequent quarters saw a steady increase in expenses, climbing above pre-decline levels by late 2022 and early 2023, peaking near 3,900 million USD in late 2023, before slightly tapering in early 2024.
- Inventories
- Inventory levels displayed a gradual downward trend from early 2019 through late 2020, decreasing from approximately 444 million USD to around 312 million USD. This reduction aligns temporally with the decline in operating expenses, suggesting reduced operational activity. Starting in early 2021, inventories began a steady upward trajectory, growing consistently over the subsequent three years to reach over 530 million USD by early 2024. This increase reflects replenishing stock levels concurrent with operational recovery.
- Inventory Turnover Ratio
- The inventory turnover ratio exhibited considerable variation throughout the timeframe. From early 2019 to early 2020, turnover values hovered around 25 to 30, indicating relatively efficient inventory management. However, during the period coinciding with reduced operations in 2020 and early 2021, turnover ratios dropped markedly to near 10, reflecting slower inventory movement. From mid-2021 onwards, the ratio progressively improved, surpassing 27 by early 2024. This positive trend demonstrates a return to more efficient inventory utilization as business conditions normalized.
- Summary of Trends and Insights
- The data suggests a clear impact on operational activity beginning in early 2020, inferred from sharp declines in operating expenses and inventory levels. Inventory turnover also slowed considerably during this period, indicating reduced inventory movement. From early 2021 onwards, there has been a consistent pattern of recovery reflected in increasing operating expenses and inventories, alongside improving turnover ratios. This indicates a reestablishment of activity levels and improved operational efficiency. Despite strong recovery, operating expenses in late 2023 show some volatility, suggesting ongoing adjustments within operational management.
Receivables Turnover
Carnival Corp. & plc, receivables turnover calculation (quarterly data)
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | Feb 28, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Revenues | 5,406) | 5,396) | 6,854) | 4,911) | 4,432) | 3,839) | 4,305) | 2,401) | 1,623) | 1,286) | 546) | 50) | 26) | 35) | 31) | 740) | 4,789) | 4,781) | 6,533) | 4,838) | 4,673) | |||||||
| Trade and other receivables, net | 644) | 556) | 485) | 449) | 514) | 395) | 360) | 359) | 267) | 246) | 281) | 218) | 250) | 273) | 376) | 604) | 405) | 444) | 441) | 405) | 406) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Receivables turnover1 | 35.04 | 38.84 | 41.31 | 38.95 | 29.14 | 30.81 | 26.71 | 16.31 | 13.13 | 7.76 | 2.34 | 0.65 | 3.33 | 20.49 | 27.50 | 27.89 | 51.71 | 46.90 | 46.49 | 48.90 | 47.59 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Airbnb Inc. | 58.52 | 48.38 | 46.60 | 41.69 | 47.07 | 52.17 | 53.27 | 43.30 | 53.74 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Booking Holdings Inc. | 6.68 | 6.57 | 5.98 | 6.90 | 8.87 | 7.67 | 7.01 | 6.51 | 7.77 | 8.07 | 5.93 | 5.57 | 9.64 | — | — | — | — | — | — | — | — | |||||||
| Chipotle Mexican Grill Inc. | 113.59 | 85.44 | 134.08 | 152.24 | 136.37 | 80.79 | 118.06 | 97.41 | 87.64 | 75.77 | 94.54 | 90.40 | 92.26 | — | — | — | — | — | — | — | — | |||||||
| DoorDash, Inc. | 16.69 | 16.20 | 19.54 | 20.07 | 18.75 | 16.46 | 18.66 | 16.30 | 16.41 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| McDonald’s Corp. | 4.41 | 3.92 | 4.22 | 4.12 | 4.18 | 4.14 | 4.80 | 5.20 | 5.93 | 5.23 | 5.19 | 5.07 | 4.77 | — | — | — | — | — | — | — | — | |||||||
| Starbucks Corp. | 31.49 | 30.38 | 30.71 | 28.67 | 28.30 | 27.44 | 27.91 | 31.27 | 29.45 | 30.92 | 29.76 | 27.09 | 26.09 | 26.62 | 27.31 | 28.33 | 29.70 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-02-29), 10-K (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-Q (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-K (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-Q (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-K (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-Q (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-K (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-Q (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-K (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-02-28).
1 Q1 2024 Calculation
Receivables turnover
= (RevenuesQ1 2024
+ RevenuesQ4 2023
+ RevenuesQ3 2023
+ RevenuesQ2 2023)
÷ Trade and other receivables, net
= (5,406 + 5,396 + 6,854 + 4,911)
÷ 644 = 35.04
2 Click competitor name to see calculations.
The financial data reveals notable fluctuations and gradual recovery trends over the reviewed periods. Revenues experienced a sharp decline starting in early 2020, reaching their lowest points during mid to late 2020. This significant drop was followed by a consistent and steady increase through the subsequent quarters, reflecting a recovery phase approaching pre-decline levels by early 2024.
"Trade and other receivables, net" demonstrate a varying pattern with peaks and troughs. Initially, receivables values remained relatively stable but increased notably in the mid-2020 period, before declining again towards late 2020. From 2021 onwards, a gradual upward trend in receivables is observable, with values surpassing previous peaks by early 2024, indicating potentially expanding business activity or extended credit terms.
The "Receivables turnover" ratio exhibits a significant deterioration initially starting in early 2020, coinciding with the decline in revenues and the increase in receivables. The ratio plummeted to very low levels around early and mid-2021, indicating slower collection of receivables or possible challenges in accounts receivable management. Subsequent quarters show a marked improvement, with the ratio rising steadily, suggesting an enhancement in the efficiency of receivables collection. However, despite recovery, the ratio remained below the levels seen before 2020 as of early 2024.
- Revenue Trends
- Sharp decline beginning early 2020, with the lowest values in mid to late 2020, followed by a steady recovery through 2023 into early 2024.
- Trade and Other Receivables
- Moderate stability pre-2020, rise in mid-2020, subsequent fluctuations, and a generally upward trend from 2021 onwards, indicating greater receivables volume.
- Receivables Turnover Ratio
- Significant decline in early 2020, bottoming out in early to mid-2021, then substantial improvement thereafter though not fully recovering to pre-2020 levels by early 2024.
Payables Turnover
Carnival Corp. & plc, payables turnover calculation (quarterly data)
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | Feb 28, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cruise and tour operating expenses | 3,704) | 3,628) | 3,921) | 3,458) | 3,310) | 3,666) | 3,378) | 2,683) | 2,030) | 1,823) | 1,616) | 681) | 535) | 689) | 1,549) | 2,484) | 3,523) | 3,076) | 3,532) | 3,159) | 3,142) | |||||||
| Accounts payable | 1,103) | 1,168) | 1,103) | 1,042) | 1,022) | 1,050) | 920) | 912) | 772) | 797) | 672) | 499) | 505) | 624) | 691) | 1,809) | 904) | 756) | 695) | 792) | 798) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Payables turnover1 | 13.34 | 12.26 | 13.01 | 13.26 | 12.76 | 11.20 | 10.78 | 8.94 | 7.97 | 5.84 | 5.24 | 6.92 | 10.41 | 13.21 | 15.39 | 6.97 | 14.70 | 17.08 | 18.09 | 15.15 | 14.44 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Booking Holdings Inc. | 6.73 | 6.14 | 6.83 | 9.11 | 8.52 | 6.82 | 7.52 | 6.54 | 8.32 | 6.91 | 6.29 | 6.98 | 9.91 | — | — | — | — | — | — | — | — | |||||||
| Chipotle Mexican Grill Inc. | 38.02 | 36.86 | 34.04 | 42.59 | 36.87 | 35.61 | 38.60 | 39.82 | 36.05 | 35.79 | 32.44 | 38.26 | 34.83 | — | — | — | — | — | — | — | — | |||||||
| DoorDash, Inc. | 23.89 | 21.25 | 29.36 | 23.98 | 18.72 | 22.85 | 13.48 | 13.83 | 12.50 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| McDonald’s Corp. | 8.91 | 7.46 | 9.30 | 9.50 | 9.05 | 7.53 | 9.57 | 10.74 | 11.40 | 7.99 | 10.16 | 10.42 | 10.52 | — | — | — | — | — | — | — | — | |||||||
| Starbucks Corp. | 18.13 | 16.92 | 17.11 | 17.49 | 18.12 | 16.57 | 15.70 | 17.03 | 16.81 | 17.06 | 17.36 | 17.82 | 17.44 | 18.50 | 21.71 | 19.54 | 17.80 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-02-29), 10-K (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-Q (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-K (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-Q (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-K (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-Q (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-K (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-Q (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-K (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-02-28).
1 Q1 2024 Calculation
Payables turnover
= (Cruise and tour operating expensesQ1 2024
+ Cruise and tour operating expensesQ4 2023
+ Cruise and tour operating expensesQ3 2023
+ Cruise and tour operating expensesQ2 2023)
÷ Accounts payable
= (3,704 + 3,628 + 3,921 + 3,458)
÷ 1,103 = 13.34
2 Click competitor name to see calculations.
- Cruise and Tour Operating Expenses
- Operating expenses showed a general increase from early 2019 through early 2020, peaking at $3,523 million in February 2020. A sharp and significant decline occurred starting in May 2020, reaching a low of $535 million by February 2021. From this trough, expenses began to recover steadily, rising across subsequent quarters and reaching $3,704 million by February 2024. This pattern suggests a notable disruption impacting operations in early 2020, followed by gradual recovery and resumption of activity thereafter.
- Accounts Payable
- Accounts payable were relatively stable around the $700 to $900 million range from early 2019 through February 2020. A conspicuous spike to $1,809 million occurred in May 2020, after which the values decreased and stabilized again around $600 to $1,100 million in the following years. This surge may indicate temporary changes in payment cycles or cash management strategies coinciding with the period of operational disruption. Subsequent values show a moderate upward trend, peaking at $1,168 million in November 2023 before slightly declining to $1,103 million by February 2024.
- Payables Turnover Ratio
- The payables turnover ratio remained relatively high and stable from February 2019 through February 2020, ranging mostly between 14 and 18 times. This ratio then experienced a significant decline starting May 2020, reaching the lowest point at 5.24 in August 2021. Following this low, the turnover ratio recovered consistently, reaching 13.34 by February 2024. The drop and gradual recovery in turnover ratio correspond closely with the timing of the operational expense changes and accounts payable fluctuations, reflecting adjustments in the pace of settling payables during periods of operational disruption and partial recovery.
Working Capital Turnover
Carnival Corp. & plc, working capital turnover calculation (quarterly data)
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | Feb 28, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current assets | 4,484) | 5,266) | 4,683) | 6,206) | 7,144) | 7,492) | 8,432) | 8,554) | 8,057) | 10,133) | 8,909) | 10,198) | 12,459) | 10,563) | 9,268) | 8,222) | 2,885) | 2,059) | 2,712) | 2,835) | 2,101) | |||||||
| Less: Current liabilities | 12,396) | 11,481) | 11,008) | 11,835) | 11,088) | 10,605) | 12,954) | 13,380) | 10,920) | 10,408) | 9,491) | 8,754) | 8,619) | 8,686) | 10,184) | 11,858) | 10,716) | 9,127) | 8,932) | 10,377) | 9,642) | |||||||
| Working capital | (7,912) | (6,215) | (6,325) | (5,629) | (3,944) | (3,113) | (4,522) | (4,826) | (2,863) | (275) | (582) | 1,444) | 3,840) | 1,877) | (916) | (3,636) | (7,831) | (7,068) | (6,220) | (7,542) | (7,541) | |||||||
| Revenues | 5,406) | 5,396) | 6,854) | 4,911) | 4,432) | 3,839) | 4,305) | 2,401) | 1,623) | 1,286) | 546) | 50) | 26) | 35) | 31) | 740) | 4,789) | 4,781) | 6,533) | 4,838) | 4,673) | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Working capital turnover1 | — | — | — | — | — | — | — | — | — | — | — | 0.10 | 0.22 | 2.98 | — | — | — | — | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Airbnb Inc. | 1.64 | 1.51 | 1.25 | 1.41 | 1.31 | 1.22 | 1.17 | 1.13 | 1.10 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Booking Holdings Inc. | 6.04 | 5.77 | 3.65 | 2.82 | 2.77 | 2.33 | 4.14 | 3.16 | 2.32 | 1.59 | 1.07 | 1.02 | 0.74 | — | — | — | — | — | — | — | — | |||||||
| Chipotle Mexican Grill Inc. | 15.74 | 16.73 | 16.40 | 16.17 | 24.45 | 34.00 | 32.42 | 37.95 | 29.78 | 14.86 | 10.78 | 11.18 | 10.14 | — | — | — | — | — | — | — | — | |||||||
| DoorDash, Inc. | 3.82 | 3.95 | 3.78 | 4.09 | 3.70 | 3.03 | 2.45 | 2.01 | 1.98 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| McDonald’s Corp. | — | 8.64 | 3.33 | 7.11 | 3.99 | 5.39 | 4.03 | 6.64 | 23.54 | 3.13 | 5.58 | 5.19 | 9.32 | — | — | — | — | — | — | — | — | |||||||
| Starbucks Corp. | — | — | — | — | — | — | — | — | — | 18.11 | 205.59 | 50.26 | 48.92 | 51.17 | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-02-29), 10-K (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-Q (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-K (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-Q (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-K (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-Q (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-K (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-Q (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-K (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-02-28).
1 Q1 2024 Calculation
Working capital turnover
= (RevenuesQ1 2024
+ RevenuesQ4 2023
+ RevenuesQ3 2023
+ RevenuesQ2 2023)
÷ Working capital
= (5,406 + 5,396 + 6,854 + 4,911)
÷ -7,912 = —
2 Click competitor name to see calculations.
- Working Capital
- The working capital exhibits significant volatility over the analyzed period. Initially, the figures are notably negative, ranging around -7,500 million USD between early 2019 and early 2020, indicating a deficit in current assets relative to current liabilities. From mid-2020 onwards, the working capital moves towards positive territory, peaking around 3,840 million USD by early 2021. However, this improvement is short-lived, with values reverting to negative figures thereafter, reaching approximately -7,900 million USD by early 2024. This pattern suggests fluctuating liquidity positions, with a temporary recovery amid otherwise persistent working capital deficits.
- Revenues
- Revenues demonstrate a distinct pattern influenced by an abrupt decline during early 2020, likely associated with external disruptive events. Prior to this decline, revenues remained relatively stable with values around 4,600 to 6,500 million USD. A sharp drop is observed in mid-2020, with revenues falling to as low as 26 to 50 million USD, signaling a stark contraction in business activity. Subsequently, revenues show a progressive rebound from late 2020 through early 2024, climbing steadily to approximately 5,400 to 6,800 million USD by the latest periods. This recovery trend underscores a gradual reactivation of income streams following the initial downturn.
- Working Capital Turnover
- Data for working capital turnover is sporadic, with values only available during early 2021. During this time, the ratio starts at a relatively high 2.98, then decreases sharply to 0.22 and further to 0.10. This declining trend indicates a reduction in the efficiency with which the company utilizes its working capital to generate revenues over that short period. The absence of data for other periods limits a fuller assessment of turnover trends.
Average Inventory Processing Period
Carnival Corp. & plc, average inventory processing period calculation (quarterly data)
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | Feb 28, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||
| Inventory turnover | 27.70 | 27.12 | 29.72 | 31.53 | 29.10 | 27.47 | 23.60 | 19.18 | 15.69 | 13.08 | 10.93 | 11.21 | 16.85 | 24.61 | 30.46 | 34.85 | 30.20 | 30.23 | 26.09 | 23.95 | 25.95 | |||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
| Average inventory processing period1 | 13 | 13 | 12 | 12 | 13 | 13 | 15 | 19 | 23 | 28 | 33 | 33 | 22 | 15 | 12 | 10 | 12 | 12 | 14 | 15 | 14 | |||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | — | — | — | — | — | — | — | — | |||||||
| McDonald’s Corp. | 2 | 2 | 2 | 2 | 3 | 3 | 2 | 2 | 2 | 3 | 2 | 2 | 2 | — | — | — | — | — | — | — | — | |||||||
| Starbucks Corp. | 23 | 25 | 28 | 29 | 31 | 33 | 33 | 31 | 28 | 28 | 29 | 30 | 29 | 31 | 31 | 28 | 27 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-02-29), 10-K (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-Q (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-K (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-Q (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-K (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-Q (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-K (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-Q (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-K (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-02-28).
1 Q1 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 27.70 = 13
2 Click competitor name to see calculations.
- Inventory Turnover Ratio
- The inventory turnover ratio exhibited notable fluctuations over the analyzed periods. Initially, it remained relatively stable between approximately 24 and 30 from early 2019 through early 2020, indicating efficient inventory management. A sharp increase was observed in mid-2020, peaking at 34.85, followed by a decline towards the end of 2020, reaching a low of around 10.93 in mid-2021. This decline suggests inventory management challenges or changes in sales patterns during that period. Starting from late 2021, a consistent recovery trend is noticeable, with the turnover ratio rising steadily to nearly 30 by early 2024, indicating improved inventory efficiency and possibly stronger sales or better inventory control.
- Average Inventory Processing Period (in days)
- The average inventory processing period inversely mirrors the inventory turnover trends. It started at about 14 days in early 2019, gradually decreasing to around 10 days by mid-2020, indicating faster inventory turnover during that time. However, there was a pronounced increase from late 2020 through mid-2021, peaking at 33 days, which corresponds to the period when inventory turnover was lowest. This increase suggests slower inventory movement, potentially due to disruptions or lower demand. From late 2021 onward, the processing period decreased again consistently, returning to approximately 12 to 13 days by early 2024. This decline aligns with the improvement in inventory turnover, signaling a return to more efficient inventory handling.
- Overall Trends and Insights
- The data reveals a clear inverse relationship between the inventory turnover ratio and the average inventory processing period, as expected. The significant dip in turnover ratio and corresponding increase in processing period during 2020-2021 likely reflects operational challenges that impacted inventory efficiency. The recovery phase starting from late 2021 suggests corrective measures or market improvements that enhanced inventory management. By early 2024, inventory performance indicators have approached or exceeded pre-2020 levels, indicating restored operational efficiency and potentially stronger market conditions.
Average Receivable Collection Period
Carnival Corp. & plc, average receivable collection period calculation (quarterly data)
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | Feb 28, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||
| Receivables turnover | 35.04 | 38.84 | 41.31 | 38.95 | 29.14 | 30.81 | 26.71 | 16.31 | 13.13 | 7.76 | 2.34 | 0.65 | 3.33 | 20.49 | 27.50 | 27.89 | 51.71 | 46.90 | 46.49 | 48.90 | 47.59 | |||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
| Average receivable collection period1 | 10 | 9 | 9 | 9 | 13 | 12 | 14 | 22 | 28 | 47 | 156 | 560 | 110 | 18 | 13 | 13 | 7 | 8 | 8 | 7 | 8 | |||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||||
| Airbnb Inc. | 6 | 8 | 8 | 9 | 8 | 7 | 7 | 8 | 7 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Booking Holdings Inc. | 55 | 56 | 61 | 53 | 41 | 48 | 52 | 56 | 47 | 45 | 62 | 66 | 38 | — | — | — | — | — | — | — | — | |||||||
| Chipotle Mexican Grill Inc. | 3 | 4 | 3 | 2 | 3 | 5 | 3 | 4 | 4 | 5 | 4 | 4 | 4 | — | — | — | — | — | — | — | — | |||||||
| DoorDash, Inc. | 22 | 23 | 19 | 18 | 19 | 22 | 20 | 22 | 22 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| McDonald’s Corp. | 83 | 93 | 87 | 89 | 87 | 88 | 76 | 70 | 62 | 70 | 70 | 72 | 76 | — | — | — | — | — | — | — | — | |||||||
| Starbucks Corp. | 12 | 12 | 12 | 13 | 13 | 13 | 13 | 12 | 12 | 12 | 12 | 13 | 14 | 14 | 13 | 13 | 12 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-02-29), 10-K (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-Q (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-K (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-Q (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-K (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-Q (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-K (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-Q (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-K (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-02-28).
1 Q1 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 35.04 = 10
2 Click competitor name to see calculations.
The analysis of the receivables turnover ratio and the average receivable collection period over the given periods reveals significant fluctuations with distinct patterns that correspond to external and operational factors impacting the company's financial efficiency.
- Receivables Turnover Ratio Trends
- The receivables turnover ratio showed relatively stable performance in the year 2019, fluctuating mildly between approximately 46 and 52, indicating efficient collection of receivables during this period.
- Beginning in early 2020, a sharp decline is observed, with the ratio dropping drastically to below 21 by the end of the year, suggesting a significant slowdown in the collection process.
- The lowest point occurs in early 2021, reaching a ratio as low as 0.65, which indicates that the company was collecting receivables very inefficiently or experiencing considerable delays in payments.
- Following this trough, the ratio shows a consistent recovery trend throughout 2021 and 2022, rising steadily until it reaches levels above 30 by late 2022 and remains relatively strong through early 2024, though slightly declining towards the end of the period.
- Average Receivable Collection Period Trends
- The average receivable collection period inversely mirrors the turnover ratio. It remained low and stable at around 7 to 8 days during 2019, indicating prompt collections.
- In 2020, the collection period increased sharply from 7 days to a peak of 560 days by May 2021, reflecting a substantial delay in the collection of receivables. This surge corresponds with the period of operational challenges possibly due to external disruptions.
- After peaking, the collection period decreases significantly throughout the remainder of 2021 and 2022, returning to more normal levels between 9 and 28 days by early 2023.
- The collection period stabilizes at around 9 to 10 days from 2023 through early 2024, indicating an improvement and normalization of cash flow management.
- Overall Insights
- The data reveals a pronounced impact on the company's receivables management beginning in early 2020, with deteriorating collection efficiency and sharply increased collection periods.
- Recovery trends starting mid-2021 suggest strategic or operational adjustments were effective in restoring financial efficiency.
- By 2023 and into early 2024, the financial metrics have approached pre-2020 levels, which implies a return to stable operations and improved receivables performance.
Operating Cycle
Carnival Corp. & plc, operating cycle calculation (quarterly data)
No. days
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | Feb 28, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||
| Average inventory processing period | 13 | 13 | 12 | 12 | 13 | 13 | 15 | 19 | 23 | 28 | 33 | 33 | 22 | 15 | 12 | 10 | 12 | 12 | 14 | 15 | 14 | |||||||
| Average receivable collection period | 10 | 9 | 9 | 9 | 13 | 12 | 14 | 22 | 28 | 47 | 156 | 560 | 110 | 18 | 13 | 13 | 7 | 8 | 8 | 7 | 8 | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Operating cycle1 | 23 | 22 | 21 | 21 | 26 | 25 | 29 | 41 | 51 | 75 | 189 | 593 | 132 | 33 | 25 | 23 | 19 | 20 | 22 | 22 | 22 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | 5 | 6 | 5 | 4 | 5 | 7 | 5 | 6 | 6 | 7 | 6 | 6 | 6 | — | — | — | — | — | — | — | — | |||||||
| McDonald’s Corp. | 85 | 95 | 89 | 91 | 90 | 91 | 78 | 72 | 64 | 73 | 72 | 74 | 78 | — | — | — | — | — | — | — | — | |||||||
| Starbucks Corp. | 35 | 37 | 40 | 42 | 44 | 46 | 46 | 43 | 40 | 40 | 41 | 43 | 43 | 45 | 44 | 41 | 39 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-02-29), 10-K (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-Q (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-K (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-Q (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-K (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-Q (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-K (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-Q (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-K (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-02-28).
1 Q1 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 13 + 10 = 23
2 Click competitor name to see calculations.
- Inventory Processing Period
- The inventory processing period demonstrated fluctuations over the observed quarters. Initially, it ranged between 12 and 15 days from February 2019 to November 2019. Notably, there was a decline to 10 days in May 2020, indicating an improvement in processing efficiency during that period. However, this was followed by an increase, peaking at 33 days in both May and August 2021, suggesting delays or inefficiencies. From that high point, the period gradually decreased to stabilize around 12 to 13 days by the end of the dataset in February 2024, reflecting a recovery toward earlier operational efficiency levels.
- Receivable Collection Period
- The receivable collection period showed considerable volatility. Between February 2019 and February 2020, the period was relatively stable, averaging around 7 to 8 days. Beginning in May 2020, there was a sharp increase, reaching an extreme peak of 560 days in May 2021, which signals significant challenges in collecting receivables during that period. Following this peak, the collection period improved markedly, declining steadily to values close to the initial range, near 9 to 10 days, by February 2024. This pattern may reflect temporary disruptions followed by effective remedial actions in credit and collections management.
- Operating Cycle
- The operating cycle closely mirrored the trends observed in the other two metrics, given it is the sum of inventory processing and receivable collection periods. It remained fairly consistent around 20 to 22 days until early 2020. Subsequently, there was a sharp lengthening beginning in May 2020, peaking at an unprecedented 593 days in May 2021. This extraordinary value corresponds predominantly to the spike observed in the receivable collection period. After this peak, the operating cycle decreased substantially and stabilized around 21 to 23 days by February 2024, signaling a return to normal operational conditions.
Average Payables Payment Period
Carnival Corp. & plc, average payables payment period calculation (quarterly data)
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | Feb 28, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||
| Payables turnover | 13.34 | 12.26 | 13.01 | 13.26 | 12.76 | 11.20 | 10.78 | 8.94 | 7.97 | 5.84 | 5.24 | 6.92 | 10.41 | 13.21 | 15.39 | 6.97 | 14.70 | 17.08 | 18.09 | 15.15 | 14.44 | |||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||
| Average payables payment period1 | 27 | 30 | 28 | 28 | 29 | 33 | 34 | 41 | 46 | 62 | 70 | 53 | 35 | 28 | 24 | 52 | 25 | 21 | 20 | 24 | 25 | |||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||||
| Booking Holdings Inc. | 54 | 59 | 53 | 40 | 43 | 54 | 49 | 56 | 44 | 53 | 58 | 52 | 37 | — | — | — | — | — | — | — | — | |||||||
| Chipotle Mexican Grill Inc. | 10 | 10 | 11 | 9 | 10 | 10 | 9 | 9 | 10 | 10 | 11 | 10 | 10 | — | — | — | — | — | — | — | — | |||||||
| DoorDash, Inc. | 15 | 17 | 12 | 15 | 19 | 16 | 27 | 26 | 29 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| McDonald’s Corp. | 41 | 49 | 39 | 38 | 40 | 48 | 38 | 34 | 32 | 46 | 36 | 35 | 35 | — | — | — | — | — | — | — | — | |||||||
| Starbucks Corp. | 20 | 22 | 21 | 21 | 20 | 22 | 23 | 21 | 22 | 21 | 21 | 20 | 21 | 20 | 17 | 19 | 21 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-02-29), 10-K (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-Q (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-K (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-Q (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-K (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-Q (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-K (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-Q (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-K (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-02-28).
1 Q1 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 13.34 = 27
2 Click competitor name to see calculations.
- Payables Turnover Ratio
- The payables turnover ratio exhibited notable fluctuations over the observed periods. Initially, the ratio increased steadily from 14.44 to a peak of 18.09 in August 2019, indicating a faster rate of paying suppliers. However, starting in early 2020, there was a sharp decline to 6.97 in May 2020, reflecting a slowdown in payable turnover, likely influenced by external factors. Following this dip, the ratio rebounded with volatility, generally trending upward from mid-2021 through early 2024, reaching values above 13 in the final periods. This suggests a recovery towards quicker payment cycles, although short-term variability remained evident.
- Average Payables Payment Period (Number of Days)
- The average number of days taken to pay payables inversely mirrored the payables turnover ratio, as expected. Initially, payment periods were short, decreasing from 25 days in February 2019 to around 20 days by August 2019. A significant increase occurred in early 2020, with payment periods doubling to over 50 days by May 2020, indicating delayed payments during this timeframe. After this peak, payment periods gradually shortened, fluctuating between the low 30s and mid-40s days through 2022 and into early 2023. More recently, the payment period stabilized around 27 to 30 days, suggesting a normalization in payment processing times toward pre-2020 levels.
- Overall Trends and Insights
- The analysis reveals that the company experienced a disruption in supplier payment dynamics around early 2020, characterized by a marked reduction in payables turnover and an extended payment period. This disruption was followed by a recovery phase with gradual improvement in payment efficiency. Despite temporary fluctuations, the company appears to have stabilized its payable management practices by 2023 and early 2024, as evidenced by a return to relatively higher turnover ratios and shorter payment periods. These changes likely reflect adjustments to operations and cash management policies in response to prevailing market or economic conditions during the period.
Cash Conversion Cycle
Carnival Corp. & plc, cash conversion cycle calculation (quarterly data)
No. days
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | Feb 28, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||
| Average inventory processing period | 13 | 13 | 12 | 12 | 13 | 13 | 15 | 19 | 23 | 28 | 33 | 33 | 22 | 15 | 12 | 10 | 12 | 12 | 14 | 15 | 14 | |||||||
| Average receivable collection period | 10 | 9 | 9 | 9 | 13 | 12 | 14 | 22 | 28 | 47 | 156 | 560 | 110 | 18 | 13 | 13 | 7 | 8 | 8 | 7 | 8 | |||||||
| Average payables payment period | 27 | 30 | 28 | 28 | 29 | 33 | 34 | 41 | 46 | 62 | 70 | 53 | 35 | 28 | 24 | 52 | 25 | 21 | 20 | 24 | 25 | |||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||
| Cash conversion cycle1 | -4 | -8 | -7 | -7 | -3 | -8 | -5 | 0 | 5 | 13 | 119 | 540 | 97 | 5 | 1 | -29 | -6 | -1 | 2 | -2 | -3 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||||
| Chipotle Mexican Grill Inc. | -5 | -4 | -6 | -5 | -5 | -3 | -4 | -3 | -4 | -3 | -5 | -4 | -4 | — | — | — | — | — | — | — | — | |||||||
| McDonald’s Corp. | 44 | 46 | 50 | 53 | 50 | 43 | 40 | 38 | 32 | 27 | 36 | 39 | 43 | — | — | — | — | — | — | — | — | |||||||
| Starbucks Corp. | 15 | 15 | 19 | 21 | 24 | 24 | 23 | 22 | 18 | 19 | 20 | 23 | 22 | 25 | 27 | 22 | 18 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-02-29), 10-K (reporting date: 2023-11-30), 10-Q (reporting date: 2023-08-31), 10-Q (reporting date: 2023-05-31), 10-Q (reporting date: 2023-02-28), 10-K (reporting date: 2022-11-30), 10-Q (reporting date: 2022-08-31), 10-Q (reporting date: 2022-05-31), 10-Q (reporting date: 2022-02-28), 10-K (reporting date: 2021-11-30), 10-Q (reporting date: 2021-08-31), 10-Q (reporting date: 2021-05-31), 10-Q (reporting date: 2021-02-28), 10-K (reporting date: 2020-11-30), 10-Q (reporting date: 2020-08-31), 10-Q (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-K (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-02-28).
1 Q1 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 13 + 10 – 27 = -4
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period initially demonstrated slight variability, remaining around 12 to 15 days for the first several quarters through early 2020. There was a noticeable increase starting in early 2021, peaking at 33 days in both May and August 2021. Subsequently, it trended downward gradually, returning to a range near 12 to 13 days by early 2023 and maintaining stability through early 2024. This pattern suggests an initial increase in inventory holding times followed by operational improvements or inventory management efficiencies in the later periods.
- Average Receivable Collection Period
- The receivable collection period was relatively stable at around 7 to 8 days until early 2020, after which it experienced a sharp increase, peaking dramatically at 560 days in May 2021. This spike indicates a significant delay in collecting receivables during that period. Following this peak, the period declined steadily toward more typical levels, settling near 9 to 10 days by early 2024. This trend implies challenges in collection during 2020 to mid-2021, possibly due to external factors, with recovery toward normal levels afterward.
- Average Payables Payment Period
- The payables payment period fluctuated moderately around 20 to 25 days up to early 2020, then increased notably to as high as 70 days in August 2021. After this peak, the payment period gradually decreased, stabilizing around 27 to 30 days by early 2024. The increase suggests an extended payment cycle, possibly reflecting efforts to conserve cash or negotiate longer payment terms during uncertain periods, with a gradual normalization of payment cycles thereafter.
- Cash Conversion Cycle
- The cash conversion cycle was mostly negative or near zero prior to 2020, indicating efficient cash flow management where payables were paid after receivables and inventory turnover. However, a significant jump occurred starting in late 2020, with the cycle reaching a high of 540 days in May 2021, indicating a substantial delay in converting resources into cash. This cycle shortened considerably in subsequent quarters, returning near zero or slightly negative by late 2023 and early 2024, suggesting a restoration of more efficient cash management practices following the period of disruption.