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
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
= 2,207 – 14.61% × 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)
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
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
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
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
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. |