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GuruFocus has detected 3 Warning Signs with Carnival Corp $CCL.
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Carnival Corp (NYSE:CCL)
Debt to Equity
0.42 (As of Nov. 2016)

Carnival Corp's current portion of long-term debt for the quarter that ended in Nov. 2016 was $1,097 Mil. Carnival Corp's long-term debt for the quarter that ended in Nov. 2016 was $8,357 Mil. Carnival Corp's total equity for the quarter that ended in Nov. 2016 was $22,597 Mil. Carnival Corp's debt to equity for the quarter that ended in Nov. 2016 was 0.42.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.


Definition

Debt to Equity measures the financial leverage a company has.

Carnival Corp's Debt to Equity Ratio for the fiscal year that ended in Nov. 2016 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(1097 + 8357) / 22597
=0.42

Carnival Corp's Debt to Equity Ratio for the quarter that ended in Nov. 2016 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(1097 + 8357) / 22597
=0.42

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

In the calculation of Debt to Equity, we use the total of Current Portion of Long-Term Debt and Long-Term Debt divided by Total Equity. In some calculations, Total Liabilities is used to for calculation.


Be Aware

Because a company can increase its Return on Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return on Equity companies.


Related Terms

Current Portion of Long-Term Debt, Long-Term Debt, Total Equity, Return on Equity


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Carnival Corp Annual Data

Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14Nov15Nov16
deb2equity 0.440.490.460.410.390.370.390.380.370.42

Carnival Corp Quarterly Data

Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16
deb2equity 0.350.380.390.360.320.370.400.410.410.42
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