Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Carnival Corp. & plc, profitability 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).
The financial data over the years reveals a substantial decline in profitability and returns from the period ending November 30, 2018 through November 30, 2023.
- Gross Profit Margin
- The gross profit margin shows a noticeable decrease from 41.27% in 2018 to 38.01% in 2019, followed by a sharp decline into negative territory in 2020 and 2021 at -47.36% and -143.97%, respectively. This suggests significant challenges in core operational efficiency or cost management during these years. Subsequently, there is a recovery trend, with the margin improving to 3.38% in 2022 and further to 33.7% in 2023, indicating a potential turnaround.
- Operating Profit Margin
- The operating profit margin similarly declines from 17.61% in 2018 to 15.73% in 2019, before plunging dramatically to -158.45% in 2020 and an even more severe -371.54% in 2021. This pattern indicates rapidly escalating operating losses. Although still negative in 2022 at -35.99%, there is a notable improvement by 2023 to 9.06%, suggesting the company is regaining control over operating expenses and/or revenue generation.
- Net Profit Margin
- Net profit margin follows the same downward trend, moving from 16.69% in 2018 to 14.36% in 2019, then sharply declining to -182.95% in 2020 and further to -497.96% in 2021. Despite remaining negative at -50.07% in 2022, it improves significantly to -0.34% in 2023, nearly reaching break-even. This indicates substantial net losses during the height of difficulties but approaching stabilization more recently.
- Return on Equity (ROE)
- Return on equity declines from 12.9% in 2018 to 11.79% in 2019, then drops drastically to -49.8% in 2020 and further into deeply negative returns of -78.24% and -86.24% in 2021 and 2022. The 2023 figure of -1.08% represents a significant recovery compared to prior years but still marginally negative, indicating ongoing challenges in generating shareholder value.
- Return on Assets (ROA)
- Return on assets also declines steadily from 7.43% in 2018 to 6.64% in 2019, then becomes negative from 2020 onward with -19.1%, -17.81%, -11.78%, and slightly negative at -0.15% in 2023, showing persistent difficulties in asset utilization efficiency but a general trend toward improvement.
In summary, the company experienced severe declines in profitability and returns beginning in 2020, likely due to extraordinary adverse conditions. Since 2022, there has been a clear trend of recovery, with key profitability and return metrics improving markedly by 2023, although most remain below pre-2019 levels. This pattern suggests a phase of significant operational and financial challenges followed by gradual stabilization and improvement.
Return on Sales
Return on Investment
Gross Profit Margin
Carnival Corp. & plc, gross profit margin 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) | |||||||
| Gross profit (loss) | 7,276) | 411) | (2,747) | (2,650) | 7,916) | 7,792) | |
| Revenues | 21,593) | 12,168) | 1,908) | 5,595) | 20,825) | 18,881) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 33.70% | 3.38% | -143.97% | -47.36% | 38.01% | 41.27% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Airbnb Inc. | 82.83% | 82.15% | 80.71% | 74.07% | — | — | |
| Chipotle Mexican Grill Inc. | 26.20% | 23.88% | 22.62% | 17.40% | — | — | |
| McDonald’s Corp. | 57.12% | 56.97% | 54.17% | 50.77% | — | — | |
| Starbucks Corp. | 27.37% | 25.96% | 28.87% | 21.51% | 28.25% | — | |
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
Gross profit margin = 100 × Gross profit (loss) ÷ Revenues
= 100 × 7,276 ÷ 21,593 = 33.70%
2 Click competitor name to see calculations.
- Revenue Trends
- The revenue showed a general upward trend from 2018 to 2019, increasing from approximately $18.9 billion to $20.8 billion. However, there was a sharp decline in both 2020 and 2021, with revenues dropping significantly to $5.6 billion and $1.9 billion, respectively. This decline was followed by a partial recovery in 2022, with revenues rising to $12.2 billion, and a further increase in 2023, reaching $21.6 billion, reflecting a strong rebound over the last two years.
- Gross Profit (Loss) Patterns
- Gross profit remained positive and relatively stable between 2018 and 2019, increasing from $7.8 billion to approximately $7.9 billion. In contrast, 2020 and 2021 saw a dramatic shift to negative gross profit, with losses of $2.7 billion and $2.7 billion, respectively. This negative trend was reversed in 2022, as gross profit returned to a modest positive figure of $411 million, followed by a substantial increase in 2023 to around $7.3 billion, indicating a significant turnaround in business performance.
- Gross Profit Margin Analysis
- The gross profit margin displayed a downward trend from 41.27% in 2018 to 38.01% in 2019. It then deteriorated sharply in 2020 and 2021, turning negative at -47.36% and -143.97%, respectively, reflecting the losses incurred during these years. In 2022, the margin improved to a marginally positive 3.38%, and further increased substantially to 33.7% in 2023, suggesting recovery toward pre-pandemic profitability levels.
Operating Profit Margin
Carnival Corp. & plc, operating profit margin calculation, comparison to benchmarks
| Nov 30, 2023 | Nov 30, 2022 | Nov 30, 2021 | Nov 30, 2020 | Nov 30, 2019 | Nov 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income (loss) | 1,956) | (4,379) | (7,089) | (8,865) | 3,276) | 3,325) | |
| Revenues | 21,593) | 12,168) | 1,908) | 5,595) | 20,825) | 18,881) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 9.06% | -35.99% | -371.54% | -158.45% | 15.73% | 17.61% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Airbnb Inc. | 15.31% | 21.45% | 7.17% | -106.27% | — | — | |
| Booking Holdings Inc. | 27.31% | 29.85% | 22.78% | -9.28% | — | — | |
| Chipotle Mexican Grill Inc. | 15.78% | 13.44% | 10.67% | 4.85% | — | — | |
| McDonald’s Corp. | 45.68% | 40.42% | 44.59% | 38.13% | — | — | |
| Starbucks Corp. | 16.32% | 14.32% | 16.77% | 6.64% | 15.38% | — | |
| Operating Profit Margin, Sector | |||||||
| Consumer Services | 25.75% | 24.62% | 24.69% | 8.41% | — | — | |
| Operating Profit Margin, Industry | |||||||
| Consumer Discretionary | 9.12% | 8.47% | 8.79% | 6.48% | — | — | |
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
Operating profit margin = 100 × Operating income (loss) ÷ Revenues
= 100 × 1,956 ÷ 21,593 = 9.06%
2 Click competitor name to see calculations.
- Operating Income (Loss)
- The operating income showed a positive trend in 2018 and 2019 with values of 3325 million and 3276 million USD, respectively. However, there was a significant decline starting in 2020, resulting in substantial losses of 8865 million USD. Although losses decreased slightly in the following years, the company still faced negative operating income in 2021 and 2022 with figures of -7089 million and -4379 million USD. In 2023, operating income returned to a positive figure of 1956 million USD, indicating a recovery.
- Revenues
- Revenues increased from 18881 million USD in 2018 to 20825 million USD in 2019, reflecting growth prior to 2020. A sharp decline occurred in 2020, with revenues dropping to 5595 million USD. This decline continued in 2021, reaching a low point of 1908 million USD. Revenues moderately recovered in 2022 to 12168 million USD and further improved to 21593 million USD in 2023, surpassing pre-2020 levels.
- Operating Profit Margin
- The operating profit margin was positive in 2018 and 2019, recorded at 17.61% and 15.73%, respectively. A drastic reversal occurred in 2020, with the margin plunging to -158.45%, indicating severe operational inefficiencies and losses. The margin further deteriorated in 2021 to -371.54%, showing a period of heightened losses relative to revenues. Improvement was noted in 2022 with the margin rising to -35.99%, and by 2023, the margin returned to a positive state of 9.06%, suggesting a substantial recovery in profitability.
Net Profit Margin
Carnival Corp. & plc, net profit margin 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) | |||||||
| Net income (loss) | (74) | (6,093) | (9,501) | (10,236) | 2,990) | 3,152) | |
| Revenues | 21,593) | 12,168) | 1,908) | 5,595) | 20,825) | 18,881) | |
| Profitability Ratio | |||||||
| Net profit margin1 | -0.34% | -50.07% | -497.96% | -182.95% | 14.36% | 16.69% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Airbnb Inc. | 48.32% | 22.54% | -5.88% | -135.71% | — | — | |
| Booking Holdings Inc. | 20.07% | 17.89% | 10.63% | 0.87% | — | — | |
| Chipotle Mexican Grill Inc. | 12.45% | 10.41% | 8.65% | 5.94% | — | — | |
| McDonald’s Corp. | 33.22% | 26.65% | 32.49% | 24.63% | — | — | |
| Starbucks Corp. | 11.46% | 10.18% | 14.45% | 3.95% | 13.58% | — | |
| Net Profit Margin, Sector | |||||||
| Consumer Services | 22.32% | 17.09% | 17.21% | 2.53% | — | — | |
| Net Profit Margin, Industry | |||||||
| Consumer Discretionary | 7.92% | 5.15% | 9.20% | 5.24% | — | — | |
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
Net profit margin = 100 × Net income (loss) ÷ Revenues
= 100 × -74 ÷ 21,593 = -0.34%
2 Click competitor name to see calculations.
- Net Income (Loss)
- Net income showed a positive trend in 2018 and 2019 with values of 3,152 million and 2,990 million respectively. However, there was a substantial decline in 2020, resulting in a large net loss of 10,236 million. This negative trend persisted in 2021 and 2022, although the magnitude of the losses decreased somewhat to 9,501 million and 6,093 million respectively. By 2023, the net loss was markedly reduced to 74 million, indicating a near return to breakeven conditions.
- Revenues
- Revenues increased from 18,881 million in 2018 to 20,825 million in 2019, indicating growth. However, revenues then fell sharply in 2020 to 5,595 million. The downward trend continued in 2021, reaching a low of 1,908 million. Following 2021, there was a recovery in revenues, increasing to 12,168 million in 2022 and further rising to 21,593 million in 2023, nearly returning to pre-2020 levels.
- Net Profit Margin
- Net profit margin followed a declining trajectory over the period. It stood at 16.69% in 2018 and decreased slightly to 14.36% in 2019. There was a drastic decline in 2020 when the margin turned deeply negative at -182.95%, followed by a further decline to -497.96% in 2021, indicating severe losses relative to revenue. In 2022, the margin improved but remained negative at -50.07%, and by 2023 it was close to zero at -0.34%, reflecting the trend of diminishing losses.
- Overall Trends and Insights
- The data shows that the entity experienced significant financial distress starting in 2020, likely due to external adverse conditions impacting revenue and profitability. Revenues collapsed and stayed low through 2021, coinciding with very large net losses and extremely negative profit margins. From 2022 onward, there is a notable recovery in revenue accompanied by a reduction in net losses and improvement in profit margins, approaching breakeven in 2023. This suggests an initial impact causing severe financial strain, followed by a gradual recovery phase.
Return on Equity (ROE)
Carnival Corp. & plc, ROE 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) | |||||||
| Net income (loss) | (74) | (6,093) | (9,501) | (10,236) | 2,990) | 3,152) | |
| Shareholders’ equity | 6,882) | 7,065) | 12,144) | 20,555) | 25,365) | 24,443) | |
| Profitability Ratio | |||||||
| ROE1 | -1.08% | -86.24% | -78.24% | -49.80% | 11.79% | 12.90% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Airbnb Inc. | 58.69% | 34.05% | -7.37% | -158.00% | — | — | |
| Booking Holdings Inc. | — | 109.92% | 18.86% | 1.21% | — | — | |
| Chipotle Mexican Grill Inc. | 40.13% | 37.97% | 28.42% | 17.61% | — | — | |
| McDonald’s Corp. | — | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | — | |
| ROE, Sector | |||||||
| Consumer Services | — | — | 396.84% | — | — | — | |
| ROE, Industry | |||||||
| Consumer Discretionary | 30.61% | 21.65% | 34.37% | 25.29% | — | — | |
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
ROE = 100 × Net income (loss) ÷ Shareholders’ equity
= 100 × -74 ÷ 6,882 = -1.08%
2 Click competitor name to see calculations.
- Net Income (Loss)
- The net income demonstrated a strong positive performance in 2018 and 2019, with values of 3,152 million and 2,990 million US dollars respectively. A significant decline occurred starting in 2020, transitioning into a substantial net loss of -10,236 million US dollars. This negative trend persisted through subsequent years, though the magnitude of losses decreased gradually, reaching -74 million US dollars in 2023. This indicates a major financial downturn beginning in 2020, followed by efforts leading to near breakeven by 2023.
- Shareholders' Equity
- Shareholders' equity increased modestly from 24,443 million US dollars in 2018 to 25,365 million in 2019. From 2020 onwards, equity values declined steadily each year, dropping sharply to 20,555 million in 2020, and further to 6,882 million by 2023. This continuous reduction reflects erosion in net asset value, aligning with the increased losses experienced during the period.
- Return on Equity (ROE)
- ROE was positive at 12.9% in 2018 and slightly decreased to 11.79% in 2019. From 2020, ROE plummeted into negative territory, reaching -49.8%, and further deteriorated to an extreme low of -86.24% in 2022. A notable improvement occurred in 2023, where ROE rose sharply closer to zero at -1.08%, suggesting improved operational performance but still negative returns to shareholders.
- Overall Trend
- The data exhibits a marked shift from profitability and stable equity to pronounced losses and declining equity starting in 2020. The severe financial downturn corresponds to the onset of substantial negative returns on equity. Recent figures indicate recovery efforts with reduced losses and stabilized equity, though profitability has not yet been restored to positive levels.
Return on Assets (ROA)
Carnival Corp. & plc, ROA 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) | |||||||
| Net income (loss) | (74) | (6,093) | (9,501) | (10,236) | 2,990) | 3,152) | |
| Total assets | 49,120) | 51,703) | 53,344) | 53,593) | 45,058) | 42,401) | |
| Profitability Ratio | |||||||
| ROA1 | -0.15% | -11.78% | -17.81% | -19.10% | 6.64% | 7.43% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Airbnb Inc. | 23.21% | 11.80% | -2.57% | -43.70% | — | — | |
| Booking Holdings Inc. | 17.62% | 12.06% | 4.93% | 0.27% | — | — | |
| Chipotle Mexican Grill Inc. | 15.27% | 12.98% | 9.81% | 5.95% | — | — | |
| McDonald’s Corp. | 15.08% | 12.25% | 14.01% | 8.99% | — | — | |
| Starbucks Corp. | 14.01% | 11.73% | 13.38% | 3.16% | 18.73% | — | |
| ROA, Sector | |||||||
| Consumer Services | 16.52% | 12.08% | 10.22% | 1.24% | — | — | |
| ROA, Industry | |||||||
| Consumer Discretionary | 7.66% | 4.94% | 8.07% | 4.42% | — | — | |
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
ROA = 100 × Net income (loss) ÷ Total assets
= 100 × -74 ÷ 49,120 = -0.15%
2 Click competitor name to see calculations.
The data presents a clear trajectory of financial performance over a six-year period, highlighting significant fluctuations in profitability and asset management efficiency.
- Net Income (Loss)
- There is a pronounced decline in net income over the years. Initial positive earnings of $3,152 million in 2018 slightly decreased to $2,990 million in 2019 before turning into substantial losses starting in 2020, with the largest loss recorded at $10,236 million. Although losses slightly reduced in the following years, they remained significant through 2022 and notably decreased to a minimal loss in 2023, indicating a possible recovery trend in net profitability.
- Total Assets
- Total assets showed a growth trend from 2018 to 2020, increasing from $42,401 million to $53,593 million, suggesting expansion or increased investment during this period. However, from 2021 onward, a gradual decrease is observed, with assets declining to $49,120 million by 2023, which might reflect asset divestitures or depreciation effects.
- Return on Assets (ROA)
- ROA values mirror net income trends, reflecting a strong return of 7.43% in 2018, reducing to 6.64% in 2019. Starting in 2020, ROA turns negative, indicating inefficient use of assets to generate earnings, with the lowest point at -19.1%. Although negative returns persist through 2022, there is an observable improvement in 2023, with ROA approaching zero at -0.15%, hinting at a potential recuperation in asset productivity.
Overall, the financial indicators reveal a period of substantial operational challenges beginning in 2020, with deteriorating profitability and declining asset efficiency, followed by early signs of improvement in 2023. The reduction in total assets from 2021 onwards could be associated with efforts to streamline operations or adjust to market conditions.