Project Example Carnival - v Nasia Knohl v Ahrya Mozaffarian v Geoffrey Weeks v Jiatong Geng v Matthew Zachary v Chun Wai Wong Table of Contents 1.0

Project Example Carnival - v Nasia Knohl v Ahrya...

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v Nasia Knohl v Ahrya Mozaffarian v Geoffrey Weeks v Jiatong Geng v Matthew Zachary v Chun Wai Wong
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i Table of Contents 1.0 Executive Summary ................................................................................................................ 1 2.0 Company Industry and Environment ................................................................................... 2 2.1 Description of Corporation and Management ........................................................................... 2 2.1.1 Description of Corporation ................................................................................................ 2 2.1.2 Description of Management ............................................................................................... 3 2.2 Discussion of Competitive Environment .................................................................................. 5 2.3 Economic Climate and Outlook ................................................................................................ 7 2.3.1 United States ...................................................................................................................... 7 2.3.2 Global Economy ................................................................................................................ 8 2.4 Other Factors ........................................................................................................................... 10 2.4.1 Employee Relations ......................................................................................................... 10 2.4.2 Lawsuits ........................................................................................................................... 11 2.4.3 Terrorism Risk ................................................................................................................. 11 3.0 Introduction to Financial Analysis ...................................................................................... 12 4.0 Statement of Cash Flows ...................................................................................................... 13 4.1 Operating Activities ................................................................................................................ 13 4.1.1 Cash Flow From Operations ............................................................................................ 13 4.1.2 Cash Flow Margin ............................................................................................................ 14 4.2 Investing Activities ................................................................................................................. 15 4.2.1 Additions to Property and Equipment .............................................................................. 15 4.2.2 Cash Return on Assets ..................................................................................................... 16 4.3 Financing Activities ................................................................................................................ 17 4.3.1 Long-Term Debt .............................................................................................................. 17 4.3.2 Dividends ......................................................................................................................... 17 4.4 Summary Analysis .................................................................................................................. 18 4.4.1 Inflows ............................................................................................................................. 18 4.4.2 Outflows ........................................................................................................................... 18 5.0 Income Statement .................................................................................................................. 19 5.1 Net Revenue ............................................................................................................................ 19 5.2 Gross Profit Margin and Cost of Revenues ............................................................................ 20 5.2.1 Gross Profit Margin ......................................................................................................... 20 5.2.2 Cost of Revenues ............................................................................................................. 21 5.3 Operating Profit and Costs ...................................................................................................... 22 5.4 Net Income and Net Profit Margin ......................................................................................... 23 5.5 Fixed Asset Turnover .............................................................................................................. 25 5.6 Earnings Per Share .................................................................................................................. 26 6.0 Balance Sheet ......................................................................................................................... 27 6.1 Assets ...................................................................................................................................... 27 6.1.1 Current Assets .................................................................................................................. 27 6.1.2 Goodwill .......................................................................................................................... 28 6.1.3 Plant, Property, and Equipment ....................................................................................... 28 6.2 Liabilities ................................................................................................................................ 29
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ii 6.2.1 Current Liabilities ............................................................................................................ 29 6.2.2 Long-Term Liabilities ...................................................................................................... 29 6.3 Shareholders’ Equity ............................................................................................................... 30 7.0 Conclusion ............................................................................................................................. 31 8.0 Appendix ................................................................................................................................ 32 8.1 Carnival’s Statement of Cash Flows ....................................................................................... 32 8.2 Carnival’s Summary Analysis of SOCF ................................................................................. 34 8.3 Norwegian’s Statement of Cash Flows ................................................................................... 35 8.4 Norwegian’s Summary Analysis of SOCF ............................................................................. 36 8.5 Carnival’s Income Statement .................................................................................................. 37 8.6 Norwegian’s Income Statement .............................................................................................. 38 8.7 Carnival’s Balance Sheet ........................................................................................................ 39 8.8 Norwegian’s Balance Sheet .................................................................................................... 40 8.9 Computation of Industry Numbers ......................................................................................... 41
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1 1.0 Executive Summary This report will use quantitative and qualitative analysis in order to assess the financial position of Carnival Cruise Lines. With 101 cruise ships carrying over seven million passengers worldwide, Carnival is the largest operator of vacation cruise liners in the world. 1 With command of nearly half of the global cruise industry, Carnival benefits from certain competitive advantages. Carnival Corporation owns nine different cruise lines: Carnival Cruise Lines, Princess Cruises, Holland America Line, Seabourn, P&O Cruises, Cunard, AIDA Cruises, and Costa Cruises operating in North America, The United Kingdom, Germany, Southern Europe, and Australia. 2 The first section of this report will begin by describing Carnival’s company, mainly its corporation and management. It will then discuss Carnival’s competitive environment, economic climate and outlook (global view and United States). Additionally, this section of the report will include factors such as employee relations, lawsuits, and risks associated with Carnival. The second section of this report will analyze Carnival’s financial statements. Using the company’s 10-K report, this section will provide insight and analysis through the company’s statement of cash flows, income statement, and balance sheet. The evaluation of Carnival’s
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