Switch to:
Carnival Corp (NYSE:CCL)
Cash and Cash Equivalents
$331 Mil (As of Nov. 2014)

Carnival Corp's quarterly cash and cash equivalents increased from May. 2014 ($343.00 Mil) to Aug. 2014 ($436.00 Mil) but then declined from Aug. 2014 ($436.00 Mil) to Nov. 2014 ($331.00 Mil).

Carnival Corp's annual cash and cash equivalents declined from Nov. 2012 ($465.00 Mil) to Nov. 2013 ($462.00 Mil) and declined from Nov. 2013 ($462.00 Mil) to Nov. 2014 ($331.00 Mil).


Definition

Cash and cash equivalents are the most liquid assets on the balance sheet. Cash equivalents are assets that are readily convertible into cash, such as money market holdings, short-term government bonds or Treasury bills, marketable securities and commercial paper.


Explanation

A high number means either:

1) The company has competitive advantage generating lots of cash

2) Just sold a business or bonds (not necessarily good)

A low stockpile of cash usually means poor to mediocre economics.

There are 3 ways to create large cash reserve.

1) Sell new bonds or equity to public

2) Sell business or asset

3) It has an ongoing business generating more cash than it burns (usually means durable competitive advantage)

When a company is suffering a short term problem, Buffett looks at cash or marketable securities to see whether it has the financial strength to ride it out.

Important: Lots of cash and marketable securities + little debt = good chance that the business will sail on through tough times.

Test to see what is creating cash by looking at past 7 yrs of balance sheets. This will reveal how the cash was created.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Carnival Corp Annual Data

Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14
CashAndCashEquivalents 1,1781,163943650538429450465462331

Carnival Corp Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
CashAndCashEquivalents 568465476711981462421343436331
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK