Analysis of Debt
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- Statement of Comprehensive Income
- Cash Flow Statement
- Common-Size Income Statement
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Return on Equity (ROE) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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Total Debt (Carrying Amount)
Carnival Corp. & plc, balance sheet: debt
US$ in millions
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).
- Short-term borrowings
- The short-term borrowings exhibit significant volatility over the analyzed period. They decreased sharply from 848 million USD in 2018 to 231 million USD in 2019, followed by a notable spike to 3,084 million USD in 2020. Subsequently, there was a gradual decline to 2,790 million USD in 2021 and a drastic drop to only 200 million USD by 2023, suggesting considerable fluctuation and possibly reactive funding strategies in the short-term debt profile.
- Current portion of long-term debt
- This component displays a consistent upward trajectory from 1,578 million USD in 2018 to a peak of 2,393 million USD in 2022. A slight decrease to 2,089 million USD was observed in 2023. The persistence of growth in this category indicates increasing near-term debt obligations, although the recent reduction may reflect refinancing activities or repayment efforts.
- Long-term debt, excluding current portion
- The long-term debt, excluding the current portion, reveals a pronounced escalation during the period. Beginning at 7,897 million USD in 2018, it increased steadily to 9,675 million USD in 2019, then surged dramatically to 22,130 million USD in 2020. This upward momentum continued, reaching 31,953 million USD in 2022 before contracting to 28,483 million USD in 2023. The pattern suggests substantial long-term financing acquisition, possibly to support capital-intensive activities, with some reduction in the latest year likely due to repayments or restructuring.
- Total debt (carrying amount)
- The total carrying amount of debt mirrors the trends observed in its components, moving from 10,323 million USD in 2018 to a heightened level of 34,546 million USD in 2022, before declining to 30,572 million USD in 2023. The overall trend confirms a considerable increase in debt levels over the years, with a slight deleveraging phase toward the end of the period.
- Summary
- The data reflect an overall growth in leveraged financing, with the most pronounced increases occurring between 2019 and 2022. Short-term borrowings have shown high variability, suggesting tactical short-term adjustments, while the current portion of long-term debt increased steadily, indicating rising imminent debt maturities. The long-term debt stock primarily drove the total debt expansion, with a peak in 2022 followed by moderate reduction in 2023. These trends imply an increased reliance on debt financing during the period with some initial signs of stabilization or repayment efforts in the most recent year.
Total Debt (Fair Value)
| Nov 30, 2023 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Total debt (fair value) | |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | |
Based on: 10-K (reporting date: 2023-11-30).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt:
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| Total | |||
Based on: 10-K (reporting date: 2023-11-30).
1 US$ in millions
2 Weighted-average interest rate = 100 × ÷ =
Interest Costs Incurred
Carnival Corp. & plc, interest costs incurred
US$ in millions
| 12 months ended: | Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | Nov 30, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest expense, net of capitalized interest | |||||||||||||
| Capitalized interest | |||||||||||||
| Interest costs incurred |
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).
The analysis of the annual interest costs incurred reveals significant fluctuations over the six-year period from 2018 to 2023. The data encompasses three key components: net interest expense after capitalized interest, capitalized interest, and total interest costs incurred.
- Interest Expense, Net of Capitalized Interest
- Initially, interest expense was relatively stable, increasing modestly from 194 million USD in 2018 to 206 million USD in 2019. However, there was a pronounced surge in 2020, reaching 895 million USD, followed by continued substantial increases in subsequent years to 1,601 million USD in 2021 and 1,609 million USD in 2022. The figure culminated in a peak of 2,066 million USD in 2023, indicating a marked rise in net interest expense over the period.
- Capitalized Interest
- Capitalized interest displayed a generally upward but more variable trend. Starting at 36 million USD in 2018, it increased to 39 million USD in 2019 and then rose more sharply to 66 million USD in 2020 and 83 million USD in 2021. Following this peak, capitalized interest decreased to 48 million USD in 2022 before increasing again to 64 million USD in 2023. This pattern suggests fluctuations in the portion of interest costs that the company capitalizes, which may reflect changes in investment activity or accounting practices.
- Total Interest Costs Incurred
- The total interest costs incurred followed an upward trajectory consistent with the behavior of net interest expense but with amplified growth. From 230 million USD in 2018, costs rose steadily to 245 million USD in 2019. A sharp increase occurred in 2020, with total interest costs climbing to 961 million USD. This upward trend accelerated further in 2021, reaching 1,684 million USD, slightly decreasing to 1,657 million USD in 2022, before advancing again to the highest point of 2,130 million USD in 2023. These changes indicate a substantial increase in the company's borrowing costs or debt levels over the observed period.
Overall, the data demonstrates a significant escalation in both net interest expense and total interest costs incurred, especially from 2020 onward. This trend suggests increased leverage or higher borrowing costs, with capitalized interest showing variability that could be linked to the company’s investment activities or capital expenditures during the period.
Adjusted Interest Coverage Ratio
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).
2023 Calculations
1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense, net of capitalized interest
= ÷ =
2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= ÷ =
- Interest Coverage Ratio (Without Capitalized Interest)
- The ratio exhibited a strong decline over the analyzed period. Initially, the ratio stood at 17.53 in November 2018, indicating a robust capacity to meet interest obligations from operating earnings. A slight decrease was observed in 2019, dropping to 15.86, which still suggested comfortable coverage. However, a significant negative shift occurred in 2020, with the ratio plunging to -10.46, reflecting an inability to cover interest expenses from operating income. The negative trend persisted through 2021 and 2022, with ratios of -4.95 and -2.78 respectively, indicating ongoing financial strain. By November 2023, the ratio improved slightly to 0.97 but remained below the desirable positive threshold, signaling marginal coverage of interest charges.
- Adjusted Interest Coverage Ratio (With Capitalized Interest)
- This adjusted measure followed a similar trajectory to the unadjusted ratio, starting at 14.78 in November 2018 and decreasing gradually to 13.33 in November 2019. A sharp decline ensued in 2020, dropping to -9.74, mirroring the inability to generate sufficient earnings for interest payments when capitalized interest is considered. Subsequent years experienced continued negative ratios: -4.70 in 2021 and -2.70 in 2022, indicating persistent financial challenges. By November 2023, there was a modest recovery to 0.94, but this still pointed to minimal interest coverage, underscoring limited financial flexibility.