Business Analysis of Carnival

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Carnival

CARNIVAL

Business Overview

Carnival Corporation operates as a leisure travel and cruise company. It offers cruises under the Carnival Cruise Line, Princess Cruises, Holland America Line, and Seabourn brands in North America; and Costa, AIDA, P&O Cruises (UK), Cunard, and P&O Cruises (Australia) brands in Europe, Australia, and Asia. The company operates approximately 100 cruise ships. It also owns Holland America Princess Alaska Tours, a tour company in Alaska and the Canadian Yukon, which owns and operates hotels, lodges, glass-domed railcars, and motor coaches. In addition, the company is involved in the leasing of cruise ships. It sells its cruises primarily through travel agents and tour operators. The company was incorporated in 1972 and is headquartered in Miami, Florida. Carnival Corporation is a subsidiary of Carnival Corporation & Plc.

Carnival

Carnival


R&P Rank: 166
Sector: Travel & Leisure
Industry:Recreational Services
H.Q Location:Florida
Website: www.carnivalcorp.com
Company Address:
3655 N W 87TH AVE, PO BOX 1347, MIAMI FL 33178-2428
Ph:305-599-2600

Business Analysis of Carnival

The Travel & Leisure Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Carnival compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Carnival to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Carnival with an interactive chart.

  1. Revenue Growth: Carnival reported a revenue growth of 4.3% year-on-year during 2016. Recreational Services Industry grew at 6.2% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Carnival spent 57.3% of its total revenues on COGS. Recreational Services industry average (COGS share of revenue) in the same period was 63.5%
  3. R&D share of Revenues: Carnival R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Carnival spent 13.4% of its total revenues on Sales, Marketing, and General Administration (SG&A). Recreational Services industry average SG&A spending in the same period was 13.9%
  5. Inventory share of Revenues: As a percentage of revenue, Carnival spent 2.0% of its total revenues on Inventories. Recreational Services industry average Inventory spending in the same period was 1.2%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Carnival invested 4.4% of its total revenues on Accounts Payable (A/P) Recreational Services industry average Accounts Payable investment in the same period was 5.7%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Carnival invested 1.8% of its total revenues on Accounts Receivable (A/R). Recreational Services industry average Accounts Receivable investment in the same period was 3.9%
  8. PP&E share of Revenues: As a percentage of revenue, Carnival invested 197.9% of its total revenues on Property, Plants, and Equipments (PP&E). Recreational Services industry average PPE investment in the same period was 137.7%
  9. Intangibles share of Revenues: As a percentage of revenue, Carnival invested 25.5% of its total revenues on Intangibles. Recreational Services industry average Intangibles investment in the same period was 35.4%
  10. Net Margins: Carnival Net Margins in the year 2016 were 17.0%. Recreational Services industry average Net Margins in the same period were 9.7%

Sector and Industry Association of Carnival

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Carnival is associated with Travel & Leisure Sector and Recreational Services Industry.

Travel & Leisure sector is comprised of the following industries: Airline; Car Rental Services; Casino; Hotels and Resorts; Recreational Services. The definitions for each of the industries is as follows:

  • Airline industry includes companies primarily engaged in providing passenger air transport.
  • Car Rental Services industry includes companies engaged in providing car rental services.
  • Casino industry includes providers of gambling and casino facilities.
  • Hotels and Resorts industry includes operators of hotels, motels, lodges, resorts, spas and campgrounds.
  • Recreational Services industry includes providers of leisure facilities and services, such as amusement and theme parks, fitness centers, cruise lines, movie theaters, racetracks, and sports teams.

Industry Ranking of Carnival

With $16.4 billion revenues, Carnival ranked number 1 of all the companies in the US Recreational Services industry. There were a total of 24 public companies in the US Recreational Services industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Recreational Services industry by revenues during 2016 were:

  1. Carnival ($16.4 billion)
  2. Royal Caribbean Cruises ($8.5 billion)
  3. Live Nation Entertainment ($8.4 billion)
  4. Norwegian Cruise Line Holdings ($4.9 billion)
  5. AMC Entertainment Holdings ($3.2 billion)
  6. Regal Entertainment Group ($3.2 billion)
  7. Cinemark Holdings ($2.9 billion)
  8. SeaWorld Entertainment ($1.3 billion)
  9. Six Flags Entertainment ($1.3 billion)
  10. Churchill Downs ($1.3 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Carnivaland its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of carnival

Royal Caribbean Cruises (RCL) Business Analysis – Analyze Historical Performance, Strategic...

Royal Caribbean Cruises Ltd with $8 billion revenues in the year 2016 was the number 2 Recreational Services company. Read this report to know the top competitors of Royal Caribbean Cruises and identify growth and cost optimization opportunities of Royal Caribbean Cruises

Live Nation Entertainment (LYV) Business Analysis – Analyze Historical Performance, Strategic...

Live Nation Entertainment, Inc. with $8 billion revenues in the year 2016 was the number 3 Recreational Services company. Read this report to know the top competitors of Live Nation Entertainment and identify growth and cost optimization opportunities of Live Nation Entertainment

Norwegian Cruise Line Holdings (NCLH) Business Analysis – Analyze Historical Performance,...

Norwegian Cruise Line Holdings Ltd. with $5 billion revenues in the year 2016 was the number 4 Recreational Services company. Read this report to know the top competitors of Norwegian Cruise Line Holdings and identify growth and cost optimization opportunities of Norwegian Cruise Line Holdings

AMC Entertainment Holdings (AMC) Business Analysis – Analyze Historical Performance, Strategic...

AMC Entertainment Holdings, Inc. with $3 billion revenues in the year 2016 was the number 5 Recreational Services company. Read this report to know the top competitors of AMC Entertainment Holdings and identify growth and cost optimization opportunities of AMC Entertainment Holdings

Regal Entertainment Group (RGC) Business Analysis – Analyze Historical Performance, Strategic...

Regal Entertainment Group with $3 billion revenues in the year 2016 was the number 6 Recreational Services company. Read this report to know the top competitors of Regal Entertainment Group and identify growth and cost optimization opportunities of Regal Entertainment Group

Cinemark Holdings (CNK) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Cinemark Holdings, Inc. with $3 billion revenues in the year 2016 was the number 7 Recreational Services company. Read this report to know the top competitors of Cinemark Holdings and identify growth and cost optimization opportunities of Cinemark Holdings

Revenues Analysis

Carnival (CCL) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Carnival Corp (CCL) from 2012 to 2016. Carnival generated a total of $16.4 billion revenues during 2016. Carnival reported a revenue growth of 4.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in November.

Carnival (CCL) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Carnival Corp (CCL) from 2002 to 2016. Carnival generated a total of $16.4 billion revenues during 2016. Carnival reported a revenue growth of 4.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in November.

Carnival (CCL) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of Carnival Corp (CCL) revenue growth with Recreational Services industry growth during the last five years from 2012 to 2016. Carnival reported a revenue growth of 4.3% year-over-year during 2016. The Recreational Services industry growth was 6.2% year-over-year during 2016. Carnival growth was slower than the industry during 2016.

Profit Analysis

Carnival (CCL) Net Profit And Net Margin From 2012 To 2016

This report provides the last five years net profit and net margin of Carnival Corp (CCL) from 2012 to 2016. Carnival reported a total net income of $2.8 billion during 2016. Carnival generated a total of $16.4 billion revenues during 2016. Carnival net profit margin was 17% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in November.