Investment Thesis
Carnival operates with dangerously weak liquidity (0.19x current ratio) that raises solvency concerns despite positive operating cash flow of $2.3B. While the company generates meaningful FCF of $905M and maintains moderate leverage at 0.29x debt-to-equity, the severe liquidity squeeze suggests structural working capital challenges. The extremely dated financial data (May 2015) and missing revenue metrics severely limit analysis reliability.
Strengths
- Strong operating cash flow generation of $2.3B indicates core business cash generation capacity
- Solid free cash flow of $905M after capital expenditures demonstrates dividend/debt service capability
- Moderate leverage at 0.29x debt-to-equity provides some financial flexibility relative to peers
Risks
- Critical liquidity crisis with current ratio of 0.19x and quick ratio of 0.15x indicates potential inability to meet short-term obligations
- Extremely low cash position of $298M relative to $38.6B assets suggests near-term refinancing risk
- Data freshness of May 2015 is severely outdated; financial position may have materially changed over 10+ year period
Key Metrics to Watch
- Current ratio and quick ratio trends - monitor if company improving liquidity position
- Operating cash flow sustainability and working capital management
- Debt maturity schedule and refinancing ability in current market environment
Financial Metrics
Revenue
N/A
Net Income
271.0M
EPS (Diluted)
$0.35
Free Cash Flow
905.0M
Total Assets
38.6B
Cash
298.0M
Profitability Ratios
Gross Margin
N/A
Operating Margin
N/A
Net Margin
N/A
ROE
1.2%
ROA
0.7%
FCF Margin
N/A
Balance Sheet & Liquidity
Current Ratio
0.19x
Quick Ratio
0.15x
Debt/Equity
0.29x
Debt/Assets
0.0%
Interest Coverage
4.86x
Long-term Debt
6.6B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-03-23T05:22:10.594671 |
Data as of: 2015-05-31 |
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