Carnival Corp. & plc (NYSE:CCL)

The financial data reveals significant fluctuations in profitability metrics over the analyzed periods, with notable impacts from external or operational challenges especially starting in 2020.

Net income (loss)

The company generated positive net income in 2018 and 2019, with values of 3,152 million and 2,990 million US dollars respectively, indicating profitability. However, there was a sharp reversal from 2020 onwards, with substantial net losses recorded: -10,236 million in 2020 and -9,501 million in 2021. These losses decreased in magnitude in subsequent years to -6,093 million in 2022 and further nearly breaching break-even at -74 million in 2023, suggesting a gradual recovery trend.

Earnings before tax (EBT)

EBT followed a similar pattern to net income, reflecting consistent profitability in 2018 and 2019 at slightly over 3,000 million US dollars. Sharp declines to significant negative earnings occurred in 2020 and 2021, mirroring net income losses closely. A reduction in losses in 2022 and an almost neutral EBT in 2023 indicate margin improvements before tax impacts.

Earnings before interest and tax (EBIT)

EBIT values were positive at 3,400 million and 3,267 million for 2018 and 2019, respectively, showing operational profitability. The downward trend beginning in 2020 saw EBIT plunge into negative territory, with losses progressively narrowing from -9,358 million in 2020 to -4,471 million in 2022. A notable positive turnaround occurred in 2023 with EBIT rebounding to 2,004 million, demonstrating restored operational efficiency and earnings capability pre-interest and taxes.

Earnings before interest, tax, depreciation and amortization (EBITDA)

EBITDA remained relatively stable at over 5,400 million for 2018 and 2019, reflecting robust operating cash flow generation excluding non-cash charges. The impact of adverse events led to steep negative EBITDA in 2020 (-7,117 million) and 2021 (-5,688 million). Losses diminished substantially by 2022 (-2,196 million), and by 2023, EBITDA returned to a positive 4,374 million, indicating strong operational recovery with improved cash profitability before accounting for depreciation, amortization, interest, and tax expenses.

Overall, the data illustrates a period of solid pre-2020 profitability followed by severe financial distress affecting all earnings measures during 2020 and 2021. Subsequent years demonstrate a clear, progressive recovery trajectory across net income, EBIT, and EBITDA metrics, with particularly strong operational rebound visible in 2023. This suggests effective management responses and improving business conditions contributing to a return toward profitability.

The financial data reveals several notable trends and fluctuations over the six-year period from 2018 to 2023.

Enterprise Value (EV)

Enterprise value exhibited a decline from 49,870 million USD in 2018 to 38,340 million USD in 2020, marking a significant decrease within three years. This trend was followed by a recovery phase where EV increased to 46,458 million USD in 2021, then dipped again to 42,851 million USD in 2022 before rising notably to 48,824 million USD in 2023. Overall, the EV showed a volatile pattern but ended near the initial 2018 level after the fluctuations.

Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)

EBITDA remained relatively stable around 5,400 million USD in 2018 and 2019 but experienced a sharp negative turn in 2020, recording -7,117 million USD. This substantial loss persisted with slight improvement to -5,688 million USD in 2021 and further narrowed to -2,196 million USD in 2022, indicating ongoing operational struggles. A strong recovery is observed in 2023 when EBITDA moved back into positive territory at 4,374 million USD, suggesting a turnaround in earnings capacity.

EV/EBITDA Ratio

The EV/EBITDA ratio was 9.21 in 2018, falling to 8.11 in 2019, reflecting a decrease in enterprise value relative to earnings. This ratio is not available for the years 2020 through 2022, likely due to EBITDA being negative or close to zero, which distorts the meaningfulness of this metric. In 2023, the ratio increased significantly to 11.16, indicating that the enterprise value had risen comparatively more than EBITDA, or that EBITDA was still recovering.

In summary, the period from 2018 to 2023 was marked by volatility. The sharp EBITDA declines in 2020 and subsequent years highlight a period of operational difficulties, possibly linked to extraordinary or sector-specific factors. The eventual restoration of positive EBITDA in 2023, coupled with enterprise value approaching its former peaks, points to a recovery phase. However, the elevated EV/EBITDA ratio in 2023 may warrant further attention as it suggests a higher valuation relative to earnings compared to previous years.