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Carnival Corporation (NYSE:CCL)
Cash and Cash Equivalents
$421 Mil (As of Feb. 2014)

Carnival Corporation's quarterly cash and cash equivalents declined from Aug. 2013 ($981.00 Mil) to Nov. 2013 ($462.00 Mil) and declined from Nov. 2013 ($462.00 Mil) to Feb. 2014 ($421.00 Mil).

Carnival Corporation's annual cash and cash equivalents increased from Nov. 2011 ($450.00 Mil) to Nov. 2012 ($465.00 Mil) but then declined from Nov. 2012 ($465.00 Mil) to Nov. 2013 ($462.00 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 Corporation Annual Data

Nov04Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13
CashAndCashEquivalents 6431,1781,163943650538429450465462

Carnival Corporation Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
CashAndCashEquivalents 450471900568465476711981462421
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