Stock Analysis on Net

Carnival Corp. & plc (NYSE:CCL)

This company has been moved to the archive! The financial data has not been updated since March 27, 2024.

Economic Value Added (EVA)

Microsoft Excel

EVA is registered trademark of Stern Stewart.

Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.


Economic Profit

Carnival Corp. & plc, economic profit calculation

US$ in millions

Microsoft Excel
12 months ended: Nov 30, 2023 Nov 30, 2022 Nov 30, 2021 Nov 30, 2020 Nov 30, 2019 Nov 30, 2018
Net operating profit after taxes (NOPAT)1 2,207 (4,485) (7,863) (9,312) 3,226 3,339
Cost of capital2 14.61% 12.46% 13.68% 14.98% 19.37% 21.28%
Invested capital3 39,428 44,143 46,517 49,017 38,330 35,074
 
Economic profit4 (3,555) (9,985) (14,226) (16,654) (4,197) (4,124)

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).

1 NOPAT. See details »

2 Cost of capital. See details »

3 Invested capital. See details »

4 2023 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 2,20714.61% × 39,428 = -3,555

Item Description The company
Economic profit Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital. Carnival Corp. & plc economic profit increased from 2021 to 2022 and from 2022 to 2023.

Net Operating Profit after Taxes (NOPAT)

Carnival Corp. & plc, NOPAT calculation

US$ in millions

Microsoft Excel
12 months ended: Nov 30, 2023 Nov 30, 2022 Nov 30, 2021 Nov 30, 2020 Nov 30, 2019 Nov 30, 2018
Net income (loss) (74) (6,093) (9,501) (10,236) 2,990 3,152
Deferred income tax expense (benefit)1
Increase (decrease) in equity equivalents2
Interest expense, net of capitalized interest 2,066 1,609 1,601 895 206 194
Interest expense, operating lease liability3 78 69 52 48 59 10
Adjusted interest expense, net of capitalized interest 2,144 1,678 1,653 943 265 204
Tax benefit of interest expense, net of capitalized interest4 415 4 (4) (2) (6) (3)
Adjusted interest expense, net of capitalized interest, after taxes5 2,559 1,682 1,650 942 258 201
Interest income (233) (74) (12) (18) (23) (14)
Investment income, before taxes (233) (74) (12) (18) (23) (14)
Tax expense (benefit) of investment income6 (45) 1
Investment income, after taxes7 (278) (74) (12) (18) (22) (14)
Net operating profit after taxes (NOPAT) 2,207 (4,485) (7,863) (9,312) 3,226 3,339

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).

1 Elimination of deferred tax expense. See details »

2 Addition of increase (decrease) in equity equivalents to net income (loss).

3 2023 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 1,319 × 5.90% = 78

4 2023 Calculation
Tax benefit of interest expense, net of capitalized interest = Adjusted interest expense, net of capitalized interest × Statutory income tax rate
= 2,144 × -19.35% = -415

5 Addition of after taxes interest expense to net income (loss).

6 2023 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 233 × -19.35% = -45

7 Elimination of after taxes investment income.

Item Description The company
NOPAT Net operating profit after taxes is income from operations, but after removement of taxes calculated on cash basis that are relevant to operating income. Carnival Corp. & plc NOPAT increased from 2021 to 2022 and from 2022 to 2023.

Cash Operating Taxes

Carnival Corp. & plc, cash operating taxes calculation

US$ in millions

Microsoft Excel
12 months ended: Nov 30, 2023 Nov 30, 2022 Nov 30, 2021 Nov 30, 2020 Nov 30, 2019 Nov 30, 2018
Income tax expense (benefit), net 12 13 (21) (17) 71 54
Less: Deferred income tax expense (benefit)
Add: Tax savings from interest expense, net of capitalized interest (415) (4) 4 2 6 3
Less: Tax imposed on investment income (45) 1
Cash operating taxes (358) 10 (17) (15) 77 57

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).

Item Description The company
Cash operating taxes Cash operating taxes are estimated by adjusting income tax expense for changes in deferred taxes and tax benefit from the interest deduction. Carnival Corp. & plc cash operating taxes increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Invested Capital

Carnival Corp. & plc, invested capital calculation (financing approach)

US$ in millions

Microsoft Excel
Nov 30, 2023 Nov 30, 2022 Nov 30, 2021 Nov 30, 2020 Nov 30, 2019 Nov 30, 2018
Short-term borrowings 200 2,790 3,084 231 848
Current portion of long-term debt 2,089 2,393 1,927 1,742 1,596 1,578
Long-term debt, excluding current portion 28,483 31,953 28,509 22,130 9,675 7,897
Operating lease liability1 1,319 1,335 1,381 1,424 1,889 363
Total reported debt & leases 31,891 35,881 34,607 28,380 13,391 10,686
Shareholders’ equity 6,882 7,065 12,144 20,555 25,365 24,443
Net deferred tax (assets) liabilities2
Equity equivalents3
Accumulated other comprehensive (income) loss, net of tax4 1,939 1,982 1,502 1,436 2,066 1,949
Adjusted shareholders’ equity 8,821 9,047 13,646 21,991 27,431 26,392
Ships under construction5 (1,284) (785) (1,536) (1,354) (2,492) (2,004)
Short-term investments6 (200)
Invested capital 39,428 44,143 46,517 49,017 38,330 35,074

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).

1 Addition of capitalized operating leases.

2 Elimination of deferred taxes from assets and liabilities. See details »

3 Addition of equity equivalents to shareholders’ equity.

4 Removal of accumulated other comprehensive income.

5 Subtraction of ships under construction.

6 Subtraction of short-term investments.

Item Description The company
Invested capital Capital is an approximation of the economic book value of all cash invested in going-concern business activities. Carnival Corp. & plc invested capital decreased from 2021 to 2022 and from 2022 to 2023.

Cost of Capital

Carnival Corp. & plc, cost of capital calculations

Capital (fair value)1 Weights Cost of capital
Equity2 20,678 20,678 ÷ 51,725 = 0.40 0.40 × 26.25% = 10.50%
Debt3 29,728 29,728 ÷ 51,725 = 0.57 0.57 × 5.74% × (1 – -19.35%) = 3.94%
Operating lease liability4 1,319 1,319 ÷ 51,725 = 0.03 0.03 × 5.90% × (1 – -19.35%) = 0.18%
Total: 51,725 1.00 14.61%

Based on: 10-K (reporting date: 2023-11-30).

1 US$ in millions

2 Equity. See details »

3 Debt. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 14,322 14,322 ÷ 44,313 = 0.32 0.32 × 26.25% = 8.49%
Debt3 28,656 28,656 ÷ 44,313 = 0.65 0.65 × 5.89% × (1 – -0.21%) = 3.82%
Operating lease liability4 1,335 1,335 ÷ 44,313 = 0.03 0.03 × 5.20% × (1 – -0.21%) = 0.16%
Total: 44,313 1.00 12.46%

Based on: 10-K (reporting date: 2022-11-30).

1 US$ in millions

2 Equity. See details »

3 Debt. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 22,385 22,385 ÷ 56,229 = 0.40 0.40 × 26.25% = 10.45%
Debt3 32,463 32,463 ÷ 56,229 = 0.58 0.58 × 5.44% × (1 – 0.22%) = 3.13%
Operating lease liability4 1,381 1,381 ÷ 56,229 = 0.02 0.02 × 3.80% × (1 – 0.22%) = 0.09%
Total: 56,229 1.00 13.68%

Based on: 10-K (reporting date: 2021-11-30).

1 US$ in millions

2 Equity. See details »

3 Debt. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 20,897 20,897 ÷ 49,991 = 0.42 0.42 × 26.25% = 10.97%
Debt3 27,670 27,670 ÷ 49,991 = 0.55 0.55 × 7.07% × (1 – 0.17%) = 3.91%
Operating lease liability4 1,424 1,424 ÷ 49,991 = 0.03 0.03 × 3.40% × (1 – 0.17%) = 0.10%
Total: 49,991 1.00 14.98%

Based on: 10-K (reporting date: 2020-11-30).

1 US$ in millions

2 Equity. See details »

3 Debt. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 33,023 33,023 ÷ 46,942 = 0.70 0.70 × 26.25% = 18.47%
Debt3 12,030 12,030 ÷ 46,942 = 0.26 0.26 × 3.10% × (1 – 2.32%) = 0.78%
Operating lease liability4 1,889 1,889 ÷ 46,942 = 0.04 0.04 × 3.10% × (1 – 2.32%) = 0.12%
Total: 46,942 1.00 19.37%

Based on: 10-K (reporting date: 2019-11-30).

1 US$ in millions

2 Equity. See details »

3 Debt. See details »

4 Operating lease liability. See details »

Capital (fair value)1 Weights Cost of capital
Equity2 40,529 40,529 ÷ 51,417 = 0.79 0.79 × 26.25% = 20.69%
Debt3 10,526 10,526 ÷ 51,417 = 0.20 0.20 × 2.80% × (1 – 1.71%) = 0.56%
Operating lease liability4 363 363 ÷ 51,417 = 0.01 0.01 × 2.80% × (1 – 1.71%) = 0.02%
Total: 51,417 1.00 21.28%

Based on: 10-K (reporting date: 2018-11-30).

1 US$ in millions

2 Equity. See details »

3 Debt. See details »

4 Operating lease liability. See details »


Economic Spread Ratio

Carnival Corp. & plc, economic spread ratio calculation, comparison to benchmarks

Microsoft Excel
Nov 30, 2023 Nov 30, 2022 Nov 30, 2021 Nov 30, 2020 Nov 30, 2019 Nov 30, 2018
Selected Financial Data (US$ in millions)
Economic profit1 (3,555) (9,985) (14,226) (16,654) (4,197) (4,124)
Invested capital2 39,428 44,143 46,517 49,017 38,330 35,074
Performance Ratio
Economic spread ratio3 -9.02% -22.62% -30.58% -33.98% -10.95% -11.76%
Benchmarks
Economic Spread Ratio, Competitors4
Airbnb Inc. 13.13% 14.56% -7.70% -114.01%
Booking Holdings Inc. 16.91% 6.01% -11.40% -11.09% 30.56%
Chipotle Mexican Grill Inc. 7.68% 3.65% -1.04% -3.06% -2.83%
McDonald’s Corp. 8.86% 6.06% 8.48% 4.22% 8.46%
Starbucks Corp. 9.33% 6.91% 8.17% -4.55% -0.13%

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).

1 Economic profit. See details »

2 Invested capital. See details »

3 2023 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -3,555 ÷ 39,428 = -9.02%

4 Click competitor name to see calculations.

Performance ratio Description The company
Economic spread ratio The ratio of economic profit to invested capital, also equal to the difference between return on invested capital (ROIC) and cost of capital. Carnival Corp. & plc economic spread ratio improved from 2021 to 2022 and from 2022 to 2023.

Economic Profit Margin

Carnival Corp. & plc, economic profit margin calculation, comparison to benchmarks

Microsoft Excel
Nov 30, 2023 Nov 30, 2022 Nov 30, 2021 Nov 30, 2020 Nov 30, 2019 Nov 30, 2018
Selected Financial Data (US$ in millions)
Economic profit1 (3,555) (9,985) (14,226) (16,654) (4,197) (4,124)
Revenues 21,593 12,168 1,908 5,595 20,825 18,881
Performance Ratio
Economic profit margin2 -16.46% -82.06% -745.60% -297.66% -20.16% -21.84%
Benchmarks
Economic Profit Margin, Competitors3
Airbnb Inc. 7.53% 11.49% -6.93% -174.55%
Booking Holdings Inc. 9.03% 4.80% -15.61% -23.76% 22.36%
Chipotle Mexican Grill Inc. 4.66% 2.27% -0.75% -2.51% -2.13%
McDonald’s Corp. 17.39% 11.88% 17.42% 10.26% 17.09%
Starbucks Corp. 5.77% 4.40% 6.66% -4.44% -0.10%

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).

1 Economic profit. See details »

2 2023 Calculation
Economic profit margin = 100 × Economic profit ÷ Revenues
= 100 × -3,555 ÷ 21,593 = -16.46%

3 Click competitor name to see calculations.

Performance ratio Description The company
Economic profit margin The ratio of economic profit to sales. It is the company profit margin covering income efficiency and asset management. Economic profit margin is not biased in favor of capital-intensive business models, because any added capital is a cost to the economic profit margin. Carnival Corp. & plc economic profit margin improved from 2021 to 2022 and from 2022 to 2023.