When you look at the Operating Profit Margin (OPM) on Carnival you see margins have been declining t

Carnival Corporation is the largest and most successful cruise lines in the world. Their corporate offices are located in Miami, Florida with over 91,000 employees with offices all over the world. It all started in 1972 by Ted Arison who had a vision to create the greatest florence hotel lodging reservation cruise line in the world. Carnival slowly started to grow and over time was awarded “The World’s Most Popular Cruise Line”.(Carnival, 2006) On 1987 the management team decided to take advantage to its well-known reputation and went public entering in the New York Stock Exchange as CCL.
Today Carnival has added over 100 ships and acquired florence hotel lodging reservation premium cruise lines in almost florence hotel lodging reservation every sector of the industry. florence hotel lodging reservation In 1989 Holland America Line was acquired by Carnival adding niche operators including Windstar Cruises and Alaskan/Canadian cruise lines. florence hotel lodging reservation In 1992 several luxury liner, where acquired such as Seabourn florence hotel lodging reservation and Europe’s largest operator Costa Cruises. Carnival was not done expanding and in 1998 they acquired the prestige’s luxury operator Cunard who built the world largest ocean liner Queen Mary 2. (Carnival, 2006)
Carnival Corporation was beginning to take shape, but on 2003 they successfully merged with Princess florence hotel lodging reservation Cruises creating a global power house. florence hotel lodging reservation Carnival also purchased P O cruises, Ibero cruises and AIDA Cruises lines. Carnival had become the largest cruise operator in the world from US to Europe. Although Carnival managed several florence hotel lodging reservation cruise line operator each line had its own distinction and separate operations.
In 1972 Ted Arison owner and operator of all Carnival had a vision. florence hotel lodging reservation Ted story begins florence hotel lodging reservation when he took a small ship called the Mardi Gras and converted it into a small ocean liner. The Mardi Gras was an innovative cruise liner like no other for its time that only made a one-way trip from Miami to San Juan, Puerto Rico. (Carnival, 2006) Although it wasn’t easy surviving, Ted Arison was focused to be successful florence hotel lodging reservation and on 1974 he became full owner of Carnival cruise line.
Organization as large as Carnival florence hotel lodging reservation has management team that is broken up to different divisions. florence hotel lodging reservation It starts from CEO Chairman Micky Arison, the next tier down is Howard S Frank as the COO who over sees all businesses of company, within that same tier is David Bernstein who is CFO of all Businesses. The Next tier down is Richard Ames SVP of Shared Services, within same tier Arnaldo Perez SVP General Counsel and Secretary. Next tier down is Larry Freedman who is Chief Accounting Officer and Controller. The last tier down are all the divisional Presidents who manage AIDA Cruises, Carnival Cruise Lines, Carnival Australia, Carnival UK, Costa Crociere S.p.A, Cunard Line, Holland America Line , Princess Cruises and Seabourn Cruise Line. (David, 2013)
Carnival overall goal is to collaborate all its brands to reach every area of the cruising industry. Carnival main focus is to attract all types of customers who are in different demographic, budgets, geographic and all cultures. The main concepts that Carnival tries to achieve florence hotel lodging reservation is to be known as “Fun Ship”, along with all the amenities that go with it such as Luxury, elegance and exotic destination. (David, 2013)
Carnival has invested in their own marketing division, florence hotel lodging reservation were they offer a 10% commission to their travel agents and offer other bonus programs. The marketing division has focused on marketing material, advertisement, website interaction, seminars and videos. These efforts are too assist agent in the field to generate more sales. Their website division has created promotional campaigns that offer discounts, VIP savings, resident discounts, special meals, and holiday florence hotel lodging reservation deals. (David, 2013)
Carnival domestic and international destinations are growing. New routes are being developed and new ships are being built. Traveler’s most appealing destinations are the Caribbean, Alaska, Bahamas, Hawaii, Mediterranean/Greek Island/Turkey, Bermuda, Europe, Panama Canal and least appealing West coast of Mexico.(David, 2013). Competition is growing among the other cruise lines and more theme based environment is beginning to evolve. For example, onboard amenities are being created such as cell phone access, entertainment, villas, multiple themed restaurant, fitness center and spas are making florence hotel lodging reservation this industry competitive. (David, 2013)More and more people are cruising and more bigger and better luxury florence hotel lodging reservation liners are being built around the clock. Carnival is the leader in the industry but it must not lose their edge because competition can knock them down to second place.
Despite of economic down turns of the tourism industry; Carnival has continuously grown and expanded their portfolio of cruise line brands. Carnival Corporation has ten cruise lines with one hundred active vessels. In its portfolio of cruise line, Carnival has been able to generate nine percent revenue and delivering new ships each year. Carnival growth strategy has allowed the company to achieve a four percent increase in revenue growth and maintain the largest and most profitable travel company globally.
Since its public offering and forty years in business, Carnival florence hotel lodging reservation has managed florence hotel lodging reservation to acquire multiple cruise florence hotel lodging reservation lines that cater to the global travelers. Carnival’s global expansion is now reaching out to travelers in North America, Europe and Australia. Carnival cruises continue to offer itineraries products around the world and offer all types of entertainment including excursions. florence hotel lodging reservation Carnival continues to venture into regions that are untapped markets, such as Asia to increase market share.
Cruise industry has many competitors trying to take each other’s market share. The few players who compete with each are Carnival Corporation, Royal Caribbean Cruises, Celebration Cruise line, Star Cruises, Norwegian Cruise Lines and Radisson Seven Seas Cruises. Each company has its own niche and advertises in a certain clientele. With an all-inclusive themes cruise liners are beginning to distinguish themselves by the type of services they offer. The industry trend is to create massive ships that allow cruise line to offer more activities that can generate additional revenues to the cruise company. Today the Cruise industry is growing and more ships are currently florence hotel lodging reservation in production. Cruising is now a major player in the traveling industry and more and more people are cruising today. Market conditions for the cruise industry is growing florence hotel lodging reservation and for the last five years the cruise industry has been growing at 8% each year. (Cruise tourism, 2010).
After reviewing three years of Carnival 10k data from Financial Statement florence hotel lodging reservation and Balance sheet, we can see that Carnival is the biggest cruise line operator florence hotel lodging reservation in the world. The analysis of ratios is broken up into five segments including, liquidity, activity, profitability, asset management and leverage. Within these segments you can see the company’s current ratio to total debt to assets. This data indicates the company is strong and sound.
Under the current ratios you take the current assets divide by current liabilities which include cash, accounts florence hotel lodging reservation receivable and short term investments. Carnival shows a down trend of liquidity from 2009 to 2011. When you look at the current ratios, you see that in 2009 the current ratios florence hotel lodging reservation were 0.31. In 2010 there was a 0.09 drop which left them with a current ratio of .22, and in 2011 you only see a .01 drop which left them with a current ratio of .21.
Carnivals receivables turnover shows an increase in the ability to extend credit sales and collect receivables as the years progressed from 2009 to 2011. Carnival has a successful rate on collecting receivable. In 2009, Carnival had an Accounts Receivable Turnover of 37, had increased by 27% for a total of 47 in 2010. During 2011 you see a 30% increase florence hotel lodging reservation in accounts receivable turnover which left them with a ratio of .61 in 2011. Carnival florence hotel lodging reservation shows they are able to extend credit and collect in a 30 day timeframe.
Looking at Carnivals Return on Asset percentage, you can see in 2009 ROA came in at 4.86 has an increase of 0.46% in 2010 for a total of 5.32% and incurred a slight decrease. In 2011 the total ROA came in at 5.02%. Under the Total Assets Turnover (TAT) you see Carnival shows an increase during 2009 -2011. In 2009, Carnival had a TAT of .37, an increase of .02% in 2010 for a TAT of .39, and in 2011 reflected another .02% increase for a TAT of .41. Based on the ROA and TAT comparisons, florence hotel lodging reservation Carnival maximizes their assets and the number shows an upward trend.
When you look at the Operating Profit Margin (OPM) on Carnival you see margins have been declining through the period of 2009-2011. Carnival had an OPM of 16% in 2009, 16.22% in 2010 and a decrease in 2011 to 14.28%.Net income by percentage of sales declined for Carnival from 2010 to 2011 by 1.56%, while they only saw a gain in sales of .37% from 2009 to 2010. Now, when you look at earning florence hotel lodging reservation per Share (EPS), florence hotel lodging reservation as a shareholder these numbers would indicate how profitable the company florence hotel lodging reservation can be which Carnival had EPS of 2.24 in 2009, and increase in EPS of 0.23to total 2.47 in 2010, and a slight decrease of .05 in 2011 to total 2.42. Stock holder for Carnival would probably want to hold onto their stock as it shows a consistent trend.
Overall, Carnival has lower liquidity ratios and has much better management of its assets, relies less on debt to finance its assets. Carnival has higher price per earning percentage for 2011. When you look at stock price history, Carnival has a consistent price in the $30’s price range. After looking at all ratio’s from Liquidity Ratios, Leverage ratios, Activity ratios, Profitability ratios and growth ratios. Carnival has great management of its assets and it is stable for investors.
Organization as large as Carnival has management team that is broken up to different divisions. It starts from CEO Chairman Micky Arison, florence hotel lodging reservation the next tier down is Howard S Frank as the COO who over sees all businesses of company, within that same tiers is David Bernstein who is CFO of all Businesses. The Next tier down is Richard Ames SVP of Shared Services,