Carnival Corp. & plc (NYSE:CCL)

Inventory Turnover

The inventory turnover ratio generally shows a positive trend from 2018 through early 2020, increasing from approximately 24.64 to a peak near 34.85. A significant decline follows through 2021, dropping below 11, suggesting slower inventory movement. From 2022 onward, there is a steady recovery, with the ratio returning to levels above 27 by early 2024, indicating improving efficiency in inventory management.

Receivables Turnover

Initially stable near the high 40s to low 50s in 2018 and early 2019, the receivables turnover ratio experiences sharp declines commencing mid-2019, reaching a low point near 0.65 in early 2021. This deterioration implies difficulties in collecting receivables during that period. A notable rebound occurs starting mid-2021, with turnover rising back to near pre-2019 levels by early 2024, suggesting improved credit control and collection processes.

Payables Turnover

The payables turnover ratio fluctuates moderately between 14 and 18 from 2018 to early 2020, before collapsing to very low levels of around 5 to 7 throughout 2021. Beginning 2022, it gradually recovers to a range of approximately 12 to 13 by 2024. These movements indicate initial steady payment practices followed by extended payment periods during the challenging years and a subsequent normalization.

Working Capital Turnover

Available data only for 2020 and 2021 show a marked decrease from 2.98 down to 0.1, highlighting a severe decline in the efficiency of working capital usage during this timeframe. Data is otherwise lacking to ascertain longer-term trends.

Average Inventory Processing Period

The average inventory processing period remains fairly stable around 14–15 days until early 2020, then markedly lengthens through 2021, reaching approximately 33 days. After this peak, the period decreases steadily through 2022 and early 2024, returning near 12–13 days. This pattern aligns with the inventory turnover trends and suggests a significant slowdown in inventory movement followed by recovery.

Average Receivable Collection Period

This period remains relatively short and stable (7 to 8 days) from 2018 to 2019, then experiences a sharp surge in 2020 and 2021, peaking around 560 days. This spike indicates major collection delays or possible write-offs during that period. Subsequent quarters show a pronounced decline toward pre-crisis levels, reaching about 9 to 10 days by 2024, reflecting improved collections efficiency.

Operating Cycle

The operating cycle stays consistent around 20–22 days through 2018 and 2019, then escalates dramatically to over 590 days in early 2021. It subsequently contracts gradually, falling back to approximately 22–23 days by 2024. This indicates a period of severe operational slowdown followed by stabilization, mirroring trends in receivables and inventory periods.

Average Payables Payment Period

From 2018 to early 2020, the average payment period ranges from 20 to 25 days, with a sharp spike to over 70 days in early 2021. Following this, the period declines gradually to around 27–30 days by early 2024. The data suggests extended payment terms or delayed payments during the crisis years, then a gradual return toward normal payment terms.

Cash Conversion Cycle

The cash conversion cycle fluctuates around zero or negative values from 2018 through 2019, indicating efficient cash flow operations. This metric worsens drastically during 2020 and 2021, reaching a peak above 540 days, indicative of significant cash tied up in operations. Since 2022, the cycle steadily improves, becoming negative again in certain periods and stabilizing near -4 days by early 2024, highlighting a restoration of effective cash management.

The analysis of key financial metrics over multiple quarters reveals distinct trends and fluctuations indicating changing operational and inventory management dynamics.

Cruise and Tour Operating Expenses

The operating expenses exhibit a general pattern of increase with notable volatility in certain periods. From early 2018 through early 2020, expenses grew steadily with peaks such as 3,532 million US dollars in August 2019. Starting in early 2020, a sharp decline is observed, reaching a low of 535 million in February 2021, likely reflecting an operational downturn during this phase. Following this trough, expenses begin a gradual recovery, steadily increasing through 2023 and into early 2024, peaking at 3,921 million in November 2023 before slightly declining to 3,704 million in the latest quarter. Overall, the expenses demonstrate resilience with a significant dip around 2020-2021, followed by a consistent rebound.

Inventories

Inventories show a more stable yet slowly increasing trend over the entire period. Beginning at 394 million US dollars in February 2018, the figure mostly rises with minor fluctuations, reaching 531 million by February 2024. The inventory levels dipped slightly in mid to late 2020, correlating with the reduction in operating expenses, then began a progressive increase from 2021 onwards. This suggests adjustments in stock levels in response to operational capacity and demand cycles.

Inventory Turnover Ratio

Inventory turnover data is available starting mid-2018 and reveals significant variability. The ratio was relatively high initially, with values peaking above 30 in various quarters of 2019 and early 2020, indicating efficient inventory utilization. However, following early 2020, turnover declined markedly to a low around 10.9-11.2 in late 2020 and early 2021, consistent with reduced activity levels. Subsequently, turnover gradually improved, rising back to the high 20s by late 2023 and early 2024. This pattern aligns with the operational slowdown and recovery periods observed in expenses and inventory levels, reflecting changing inventory management effectiveness amid fluctuating business volumes.

In summary, the data portrays a company experiencing significant operational disruption starting in early 2020, with expenses and inventory management metrics reflecting this impact. A recovery phase begins around 2021, demonstrating increased operational activity and improved inventory efficiency through 2023 and early 2024. These trends highlight responsiveness to external challenges and progressive adaptation over time.

The financial data over the analyzed periods exhibits notable fluctuations in revenues, trade and other receivables, and receivables turnover ratios. The patterns reflect the underlying operational and market conditions influencing these metrics over time.

Revenues

Revenues demonstrate a generally seasonal and cyclical pattern with quarterly variations. From early 2018 through 2019, revenues show a consistent upward trend with peaks generally occurring mid-year, reaching values as high as approximately 6,533 million US dollars. However, starting in early 2020, revenues experience a sharp decline, dropping significantly to as low as 31 million US dollars by May 2020, indicative of a major disruption or market shock.

Following this substantial downturn, there is a gradual recovery observed from 2021 onwards, with revenues increasing steadily across the quarters, peaking again in early 2024 at around 6,854 million US dollars. Despite the recovery, revenues for some quarters during 2023 and early 2024 show variability, suggesting partial fluctuations in performance or external conditions affecting demand.

Trade and other receivables, net

Trade and other receivables present some volatility but generally range between approximately 200 million and 600 million US dollars throughout the timeline. Initial years (2018-2019) see moderate and relatively stable receivables, with occasional increases aligning with higher revenue quarters.

During the 2020 downturn, receivables remain variable, experiencing both increases and decreases without a consistent directional trend, possibly reflecting changing credit terms or collection efficiency amid the downturn. Post-2020, receivables gradually rise again, reaching values above 600 million US dollars by the first quarter of 2024, correlating with increased revenues and perhaps expanding sales on credit.

Receivables turnover ratio

The receivables turnover ratio exhibits significant variability. In the early periods, turnover ratios are relatively high, with values around the 40-50 range, indicating efficient collection of receivables. However, during 2020, particularly in the first half of the year, this ratio declines sharply, dropping to as low as 0.65, which suggests deteriorated collection efficiency or increasing receivable balances relative to sales.

From mid-2021 onward, the turnover ratio rebounds gradually, improving towards pre-2020 levels. By late 2023 and early 2024, turnover ratios range between approximately 35 and 41, signifying improved cash collection processes or normalized credit terms following the pandemic-related disruptions.

Cruise and Tour Operating Expenses

The cruise and tour operating expenses exhibited fluctuations across the periods analyzed. Initially, expenses remained relatively stable with slight increases from early 2018 through early 2020, peaking around $3.5 billion. A significant decline occurred starting in May 2020, coinciding with a drop to approximately $689 million in November 2020, likely reflecting operational impacts. Following this trough, expenses gradually increased again from 2021 onwards, reaching peaks nearing or exceeding $3.6 billion by late 2023 and early 2024. This pattern indicates a sharp downturn followed by a recovery phase in operating activities.

Accounts Payable

Accounts payable showed variability aligned with operational trends. From 2018 through early 2020, values ranged between approximately $666 million and $904 million, with a marked surge in May 2020 to about $1.8 billion, before a sharp correction downward in subsequent quarters. Post mid-2020, payables levels stabilized around the $500 million to $800 million range before gradually increasing in later periods, reaching levels above $1.1 billion by late 2023. The initial spike in May 2020 suggests a temporary accumulation of payables, possibly reflecting disruptions in payment cycles or liquidity management strategies during that period.

Payables Turnover Ratio

The payables turnover ratio displayed significant volatility across the timeline. High turnover ratios were observed before mid-2020, generally exceeding 14 times per annum, which reflects efficient payment processing. In contrast, the ratio dropped dramatically around May 2020 to as low as approximately 5.2 times, indicating slower payment cycles. After this period, the ratio varied but showed a recovering trend, progressively increasing back towards the pre-2020 levels, achieving values over 13 times by late 2023. This pattern underscores initial payment delays during the disruption period, followed by a restoration of operational regularity in creditor payments.

Working Capital

Over the observed period, working capital exhibited significant variability with a predominantly negative trend. Starting at negative US$7,184 million in early 2018, the figure fluctuated with some improvement towards 2020, reaching a peak positive value of US$3,840 million in February 2021. However, after this peak, a steady decline ensued, dropping back into negative territory by late 2021 and continuing to decrease substantially through early 2024, ending near negative US$7,912 million. This pattern suggests volatility in short-term assets versus liabilities management, with brief periods of positive liquidity overshadowed by recurring and worsening deficits.

Revenues

Revenue figures demonstrated marked fluctuations over the years. From early 2018 through early 2020, revenues generally ranged between approximately US$4,200 million to US$6,500 million per quarter, with some seasonal variations but no drastic changes. However, the onset of 2020 saw a dramatic decline corresponding with the global disruption, with levels falling sharply to as low as US$26 million in early 2021. Following this period, a recovery trend is apparent, with revenues progressively increasing each quarter, climbing to approximately US$6,854 million by late 2023. This recovery trajectory indicates a strong rebound in sales activity but has not yet reached or consistently surpassed pre-2020 levels.

Working Capital Turnover

The working capital turnover ratio is only reported for the period starting in early 2021. Initially, this ratio stood at nearly 3.0, indicating efficient use of working capital relative to revenues. This figure sharply dropped in subsequent periods to 0.22 and then to 0.10, suggesting a rapid decline in turnover efficiency. The limited data prevents a comprehensive trend analysis, but the steep decrease signals decreased effectiveness in utilizing working capital to generate sales during the early recovery phase.

Insights and Overall Trends

The financial data reveals the substantial impact of external factors starting in early 2020, profoundly affecting working capital and revenues. The sharp initial decline in revenues coupled with improvements and later deteriorations in working capital indicates challenges in managing operational liquidity amidst fluctuating sales volumes. The partial recovery in revenues demonstrates resilience, though working capital management appears to remain a concern given its negative position and declining turnover efficiency. The periods following the crisis highlight volatility and operational challenges likely related to the broader economic environment and industry-specific pressures.

Inventory Turnover

The inventory turnover ratio shows a dynamic pattern over the observed periods. Starting from a level around 24.64 in February 2018, it gradually increased to a peak of 34.85 in August 2020. This rise suggests an improvement in the efficiency of inventory management during this time, reflecting quicker sales or better inventory control. However, following this peak, the ratio declined sharply, reaching a low of 10.93 in November 2021, indicating a slowdown in inventory turnover likely due to external disruptions or operational challenges.

After this downturn, the turnover began to recover steadily, rising to 31.53 by February 2023, before exhibiting some fluctuations but generally maintaining levels above 27 through early 2024. Overall, the trend indicates a rebound in inventory activity and improved operational conditions compared to the low in late 2021.

Average Inventory Processing Period

The average inventory processing period inversely mirrors the inventory turnover trend, as expected. Initially stable at around 14-15 days early in the timeline, it decreased to a low of 10 days by August 2020, reflecting faster processing of inventory during the period of high turnover.

Subsequently, there was a noticeable increase in the number of days, peaking at 33 days in both August and November 2021. This extension of processing time corresponds with the decline in inventory turnover and suggests slower movement or accumulation of inventory during this period.

From early 2022 onward, the average processing period shortened substantially, decreasing to around 12-13 days by the end of the timeline. This shortening aligns with the recovery in turnover ratios and implies a restoration of more efficient inventory management and quicker sales cycles.

Overall Insights

The data reveals a cycle of increasing efficiency in inventory turnover peaking in mid-2020, followed by a period of disruption that significantly slowed inventory movement, and then a recovery phase restoring efficiency by early 2023. The inverse relationship between inventory turnover and average processing period is consistent throughout the periods analyzed, confirming the operational linkage between these metrics.

This pattern could be indicative of external challenges impacting operations around 2020 and 2021, with subsequent adaptation or recovery measures leading to improved inventory metrics thereafter.

Receivables Turnover

The receivables turnover ratio exhibited relatively stable values around the mid-40s to low 50s from early 2018 through early 2020, indicating consistent efficiency in collecting receivables during this period. In 2020, a substantial decline occurred, with the ratio dropping significantly from 51.71 in February 2020 to a low of 0.65 by May 2021. This sharp decrease suggests severe challenges in receivables management, likely influenced by external disruptions. Following this trough, the ratio began to recover gradually from May 2021 onward, increasing steadily and reaching 35.04 by February 2024. While this recovery shows improved collection efficiency, the turnover had not yet returned to pre-2020 levels by the end of the observed period.

Average Receivable Collection Period

The average collection period remained low and stable, fluctuating between 7 and 8 days from early 2018 until early 2020. Beginning in 2020, this metric experienced a dramatic increase, rising sharply to 560 days by May 2021, reflecting delayed collections and potential issues with accounts receivable during this time frame. After peaking, the collection period progressively shortened, falling to approximately 10 days by February 2024. This trend indicates a gradual restoration of collection efficiency following a period of considerable collection delays.

Overall Analysis

The financial data points to a significant disruption in receivables management starting in early 2020, with a marked decline in turnover ratio and a corresponding increase in collection days. These changes imply considerable challenges, possibly due to broader economic or industry-specific conditions during this timeframe. However, from mid-2021 onwards, both metrics show signs of recovery, returning toward pre-disruption levels, though the receivables turnover remains somewhat below earlier figures. The data suggests that while the company faced substantial collection difficulties, corrective measures or improving conditions have contributed to a steady recovery in receivables performance over the most recent quarters.

The financial data reveals several notable trends in inventory management, receivables collection, and overall operating cycle over recent periods.

Average Inventory Processing Period

The average inventory processing period begins at 15 days and oscillates modestly between 10 and 15 days until early 2020. A significant increase emerges starting in early 2021, where the period rises sharply to a peak of 33 days for two consecutive quarters. This elevated duration then gradually declines, returning closer to earlier levels around 12-15 days by early 2024. The initial stability followed by a sharp temporary increase suggests potential disruptions or changes in inventory turnover, possibly reflecting operational challenges or strategic adjustments during the pandemic period.

Average Receivable Collection Period

The receivables collection period is relatively stable from early 2018 through late 2019, ranging between 7 and 8 days. However, from mid-2020 onward, a pronounced and volatile increase is observed. The collection period spikes dramatically, reaching an extreme high of 560 days by early 2021, followed by a steep decrease to 156 days, then further reduced to 47 days and continues trending downward to approximately 9-10 days by early 2024. This extreme volatility indicates possible disruptions in customer payments or credit management, with an extraordinary delay during 2020-2021, which then normalizes substantially in subsequent periods.

Operating Cycle

The operating cycle closely mirrors the combined trends of inventory processing and receivables collection periods. It remains stable at around 20-22 days during 2018 to early 2020. Thereafter, a significant increase is seen from 2020 through early 2021, peaking around 593 days in the first quarter of 2021. This spike corresponds to the earlier noted surge in receivable collection period, indicating a pronounced elongation of the time between inventory acquisition and cash collection. Following this peak, the cycle contracts steadily to about 21-23 days by early 2024, approaching pre-disruption levels.

In summary, the data reflects a period of operational stability until early 2020, followed by substantial disruptions likely linked to external events impacting receivables and inventory turnover. The prolonged receivable collection periods suggest difficulties in cash inflow during this time, which profoundly extended the operating cycle. However, there is evidence of recovery and normalization by 2023-2024, with key performance metrics returning closer to historical norms.

The payables turnover ratio exhibits significant fluctuations over the observed quarters. Initially, the ratio showed relatively high values around 15 to 18 from early 2019 to late 2019, indicating efficient management of payables with quicker payment cycles. However, in 2020 there is a notable decline to as low as 6.92 in the third quarter, suggesting a substantial slowdown in turning over payables, which corresponds to an increase in the average payables payment period during the same timeframe.

The average payables payment period closely mirrors these trends in the payables turnover ratio. From early 2019 through to late 2019, the payment period remained consistently low, mostly between 20 and 25 days. Thereafter, the payment period increased dramatically in 2020, peaking at 70 days in the fourth quarter of 2020. This sharp increase reflects a prolongation in payment timings to suppliers or creditors. Such changes could be indicative of cash flow management strategies or external pressures affecting the company’s ability to settle payables promptly during this period.

From 2021 onwards, both metrics show a gradual improvement and stabilization. The payables turnover ratio recovers to mid-range levels, rising from lows around 5 to values around 13 by early 2024. Conversely, the average payment period correspondingly declines from the peak of 70 days down to approximately 27 days by February 2024. This trend demonstrates a return to more efficient payables management and suggests enhanced liquidity or operational conditions enabling quicker payments to suppliers.

Overall, the data reveals a period of stress or adjustment around 2020 with longer payment cycles and decreased payables turnover, followed by a recovery phase characterized by improved financial discipline in managing payables. These movements reflect how external factors possibly impacted operational cash flow management and supplier relationships, with subsequent efforts to restore more typical payables processing durations.

Payables Turnover Ratio

High and stable near 15-18 in 2019; sharp decline in 2020 to as low as 6.92; gradual recovery to around 13 by early 2024.

Average Payables Payment Period

Consistently low (20-25 days) through 2019; spike to 70 days in late 2020; steady improvement down to 27 days by early 2024.

Average Inventory Processing Period

The average inventory processing period exhibits moderate fluctuations over the observed quarters. Beginning at 15 days in early 2019, it decreased slightly to a low of 10 days by August 2020. Subsequently, there was a notable increase, peaking at 33 days during the second half of 2021, followed by a gradual decline toward 13 days by early 2024. This pattern indicates variability in inventory turnover efficiency, with a notable slowdown in mid-2021 before recovery.

Average Receivable Collection Period

This metric reveals significant volatility. From a low range of 7-8 days in early 2019, the period spikes dramatically in mid-2021, reaching an extreme high of 560 days in May 2021. Thereafter, it decreases substantially to 9-10 days by early 2024. Such large fluctuations suggest disruptions or changes in credit policies or customer payment behavior during that period, followed by normalization.

Average Payables Payment Period

The average payables payment period shows a general increasing trend until late 2021, starting around 24 days in early 2019 and peaking at 70 days in November 2021. It subsequently declines steadily to roughly 27 days by early 2024. This suggests an initial strategy of extending payable durations possibly to conserve cash, followed by a return to shorter payment cycles.

Cash Conversion Cycle

The cash conversion cycle (CCC) demonstrates noteworthy variability aligned with changes in other working capital components. From slightly negative or near zero values in early 2019 and 2020, the CCC escalates sharply to a peak of 540 days in May 2021, reflecting significant extension in receivables and payables periods during this time. After this peak, a marked improvement occurs, with CCC returning to negative values by 2023 and early 2024, indicating efficient cash flow management and reduced working capital requirements in the most recent periods.