Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Carnival Corp. & plc, liquidity ratios
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).
- Current ratio
- The current ratio shows a significant improvement from 0.24 in 2018 to 1.22 in 2020, indicating strengthened short-term liquidity during this period. However, from 2020 onward, there is a consistent decline, falling to 0.46 by 2023. This deterioration suggests a decreasing ability to cover current liabilities with current assets in the more recent years.
- Quick ratio
- The quick ratio follows a similar pattern to the current ratio. It starts at a low of 0.15 in 2018, rises sharply to 1.13 in 2020, reflecting improved immediate liquidity excluding inventory, and then declines steadily to 0.26 in 2023. The downtrend from 2020 indicates weakening quick asset coverage against current liabilities.
- Cash ratio
- The cash ratio exhibits a comparable trend to the other liquidity ratios. Beginning at 0.11 in 2018, it increases to 1.10 in 2020, signaling strong cash and cash equivalents relative to current liabilities at that time. From 2020 to 2023, it decreases sharply to 0.21, which suggests significantly lower cash reserves available to settle current obligations in the recent period.
Current Ratio
Carnival Corp. & plc, current ratio calculation, comparison to benchmarks
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | Nov 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 5,266) | 7,492) | 10,133) | 10,563) | 2,059) | 2,225) | |
| Current liabilities | 11,481) | 10,605) | 10,408) | 8,686) | 9,127) | 9,204) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 0.46 | 0.71 | 0.97 | 1.22 | 0.23 | 0.24 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Airbnb Inc. | 1.66 | 1.86 | 1.95 | 1.73 | — | — | |
| Booking Holdings Inc. | 1.28 | 1.86 | 2.10 | 3.56 | — | — | |
| Chipotle Mexican Grill Inc. | 1.57 | 1.28 | 1.58 | 1.73 | — | — | |
| McDonald’s Corp. | 1.16 | 1.43 | 1.78 | 1.01 | — | — | |
| Starbucks Corp. | 0.78 | 0.77 | 1.20 | 1.06 | 0.92 | — | |
| Current Ratio, Sector | |||||||
| Consumer Services | 1.25 | 1.46 | 1.71 | 1.60 | — | — | |
| Current Ratio, Industry | |||||||
| Consumer Discretionary | 1.20 | 1.15 | 1.25 | 1.18 | — | — | |
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 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 5,266 ÷ 11,481 = 0.46
2 Click competitor name to see calculations.
- Current Assets
-
Current assets exhibited significant fluctuations over the analyzed period. An initial slight decline was seen from 2,225 million US dollars in 2018 to 2,059 million US dollars in 2019, followed by a sharp increase peaking at 10,563 million US dollars in 2020. Subsequently, a downward trend occurred, with current assets decreasing to 10,133 million US dollars in 2021, 7,492 million US dollars in 2022, and further declining to 5,266 million US dollars in 2023.
- Current Liabilities
-
Current liabilities presented a general upward trend across the period. Starting at 9,204 million US dollars in 2018, the liabilities slightly decreased to 9,127 million US dollars in 2019 and further to 8,686 million US dollars in 2020. From 2021 onwards, current liabilities increased steadily, reaching 10,408 million US dollars in 2021, 10,605 million US dollars in 2022, and 11,481 million US dollars in 2023.
- Current Ratio
-
The current ratio reflected notable volatility, indicative of changes in short-term liquidity. The ratio remained low in 2018 and 2019 at 0.24 and 0.23 respectively, reflecting a constrained ability to cover short-term obligations with current assets. In 2020, the ratio improved significantly to 1.22, suggesting enhanced liquidity during that year. However, this improvement was not sustained. From 2021, the current ratio declined consistently, registering 0.97 in 2021, dropping to 0.71 in 2022, and further to 0.46 in 2023, indicating increasing liquidity pressures and a diminished cushion to meet immediate liabilities.
Quick Ratio
Carnival Corp. & plc, quick ratio calculation, comparison to benchmarks
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | Nov 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 2,415) | 4,029) | 8,939) | 9,513) | 518) | 982) | |
| Restricted cash | 11) | 1,988) | 14) | —) | —) | —) | |
| Short-term investments | —) | —) | 200) | —) | —) | —) | |
| Trade and other receivables, net | 556) | 395) | 246) | 273) | 444) | 358) | |
| Total quick assets | 2,982) | 6,412) | 9,399) | 9,786) | 962) | 1,340) | |
| Current liabilities | 11,481) | 10,605) | 10,408) | 8,686) | 9,127) | 9,204) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.26 | 0.60 | 0.90 | 1.13 | 0.11 | 0.15 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Airbnb Inc. | 1.62 | 1.83 | 1.91 | 1.69 | — | — | |
| Booking Holdings Inc. | 1.20 | 1.73 | 2.00 | 3.38 | — | — | |
| Chipotle Mexican Grill Inc. | 1.37 | 1.09 | 1.35 | 1.28 | — | — | |
| McDonald’s Corp. | 1.03 | 1.24 | 1.64 | 0.90 | — | — | |
| Starbucks Corp. | 0.55 | 0.48 | 0.93 | 0.75 | 0.59 | — | |
| Quick Ratio, Sector | |||||||
| Consumer Services | 1.13 | 1.29 | 1.56 | 1.41 | — | — | |
| Quick Ratio, Industry | |||||||
| Consumer Discretionary | 0.85 | 0.81 | 0.92 | 0.88 | — | — | |
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 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,982 ÷ 11,481 = 0.26
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets showed substantial volatility over the period. Initially, there was a decline from 1,340 million US dollars in 2018 to 962 million in 2019. This was followed by a significant increase to 9,786 million in 2020, maintaining a relatively high level in 2021 at 9,399 million. However, from 2021 onwards, a marked downward trend occurred, with values dropping sharply to 6,412 million in 2022 and further to 2,982 million in 2023.
- Current Liabilities
- Current liabilities exhibited a general upward trend over the years. Starting at 9,204 million US dollars in 2018, liabilities remained relatively stable through 2019 and 2020, slightly decreasing to 8,686 million in 2020. From 2021 forward, liabilities increased consistently, rising to 10,408 million in 2021, 10,605 million in 2022, and further to 11,481 million in 2023.
- Quick Ratio
- The quick ratio demonstrated considerable fluctuation, reflecting changes in liquidity. Initially low at 0.15 in 2018 and decreasing further to 0.11 in 2019, the ratio surged to 1.13 in 2020, indicating a strong improvement in liquidity. Following this peak, the quick ratio declined to 0.9 in 2021, then dropped more significantly to 0.6 in 2022, and further to a weak level of 0.26 in 2023.
- Overall Insights
- The data reveal a period of increased liquidity around 2020 and 2021, as evidenced by the pronounced rise in total quick assets and the peak quick ratio. However, this improvement was not sustained, with liquidity deteriorating substantially in 2022 and 2023, as quick assets fell and current liabilities continued to increase. The sustained rise in current liabilities combined with declining quick assets has compressed the quick ratio, indicating increased short-term financial risk and reduced capacity to cover current obligations with liquid assets in the most recent periods.
Cash Ratio
Carnival Corp. & plc, cash ratio calculation, comparison to benchmarks
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | Nov 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 2,415) | 4,029) | 8,939) | 9,513) | 518) | 982) | |
| Restricted cash | 11) | 1,988) | 14) | —) | —) | —) | |
| Short-term investments | —) | —) | 200) | —) | —) | —) | |
| Total cash assets | 2,426) | 6,017) | 9,153) | 9,513) | 518) | 982) | |
| Current liabilities | 11,481) | 10,605) | 10,408) | 8,686) | 9,127) | 9,204) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.21 | 0.57 | 0.88 | 1.10 | 0.06 | 0.11 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Airbnb Inc. | 1.01 | 1.21 | 1.31 | 1.24 | — | — | |
| Booking Holdings Inc. | 0.95 | 1.46 | 1.79 | 3.23 | — | — | |
| Chipotle Mexican Grill Inc. | 1.26 | 0.98 | 1.23 | 1.16 | — | — | |
| McDonald’s Corp. | 0.67 | 0.68 | 1.17 | 0.56 | — | — | |
| Starbucks Corp. | 0.42 | 0.35 | 0.81 | 0.63 | 0.45 | — | |
| Cash Ratio, Sector | |||||||
| Consumer Services | 0.80 | 0.95 | 1.24 | 1.16 | — | — | |
| Cash Ratio, Industry | |||||||
| Consumer Discretionary | 0.48 | 0.47 | 0.63 | 0.58 | — | — | |
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 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 2,426 ÷ 11,481 = 0.21
2 Click competitor name to see calculations.
- Total Cash Assets
-
The total cash assets displayed a significant fluctuation over the observed period. Beginning at $982 million in 2018, there was a notable decrease to $518 million in 2019. This was followed by a substantial increase to $9,513 million in 2020 and a slight further rise to $9,153 million in 2021. Subsequently, the value declined steadily, dropping to $6,017 million in 2022 and further down to $2,426 million in 2023.
- Current Liabilities
-
Current liabilities remained relatively stable throughout the period with minor increases. Starting from $9,204 million in 2018, the liabilities slightly decreased to $9,127 million in 2019 and continued to decline to $8,686 million in 2020. From 2021 onwards, liabilities increased progressively, reaching $10,408 million in 2021, $10,605 million in 2022, and $11,481 million in 2023, marking a gradual upward trend over the last three years.
- Cash Ratio
-
The cash ratio exhibited considerable volatility. Beginning at a low ratio of 0.11 in 2018, it declined further to 0.06 in 2019. There was a marked increase in 2020 to 1.1, followed by a decrease to 0.88 in 2021. The ratio then dropped significantly to 0.57 in 2022 and further to 0.21 in 2023. This pattern suggests a substantial improvement in liquidity in 2020, but a gradual erosion of cash reserves relative to current liabilities in the subsequent years.
- Overall Analysis
-
The data reveal significant variability in liquidity and cash management over the six-year period. The sharp increase in total cash assets in 2020 corresponded with a peak in the cash ratio, indicating a strong liquidity position during that year. However, the subsequent decline in cash assets and cash ratio in 2022 and 2023 suggests a reduction in immediate liquid resources relative to current liabilities. Meanwhile, current liabilities have shown a general upward trend since 2020, implying heightened short-term obligations. The combination of rising liabilities and diminishing cash reserves may indicate increasing liquidity pressures towards the end of the period.