Carnival Plc

Summary

Carnival Plc is the largest global cruise and industry leader which operated in US, UK, Canada and Continental Europe. The currency of UK British pound sterling GBP is extremely productive and capitalist economy with a strong financial service industry. The chairman (CEO) of Carnival Plc Micky Arison, the new innovation and strategies bough by Arison show a great leadership in the management goal. 2010 was an encouraging year for Carnival Plc as they improved business trends with the recovering economy. The company has increased net income with 11% with the increase in revenue almost 7% and recovers almost 3% point of revenue yield from 2009. The liquidity ratios of Carnival Plc CR are below 1.2 which indicates that the risk of the company's ability to meet its current obligations is not so sufficient, which may directly affect the efficiency of conducting business by the company. Investor will look these ratios in order to see the financial health of the company. Carnival Plc liquidity ratios are in downward trends, the values investors will hesitate in investing in this company. Carnival Plc Debt equity ratio is less than 1 which shows that company has more equity than debt. The assets management ratios are the efficiency ratios Carnival Plc which are not so much in favour of the company. Hence, these are the indicators of business activity analysis that allows assessing the efficiency of the management of the company on the market. In addition to this, return on equity also shows decline over the years. As the return on equity was 12.99 in 2006 and 8.78 is in 2010. This indicates that company is not generating profit with the money that investors have invested. This ratio is calculated by the investors in order to see how Carnival Plc is utilizing their money so in return they can get dividend. Nevertheless, the share valuation of the Carnival Plc is progressing as for investor they are looking for dividend. As far as the market value of the share is increasing investors are satisfied.

Corporate Financial Analysis

Carnival Plc

Stock market and Economics

Carnival Plc is the largest global cruise and industry leader which operated in US, UK, Canada and Continental Europe. The head office of this company is at Miami, Florida and UK with employs over 890000 people. Carnival Corporation and Carnival plc are dual list company (DLC); both maintain their legal identity with separate stock exchange, but the boards and senior executive management of both the companies are same. Carnival provides cruise vacation services all over the world. The chief brand comprises of Carnival Cruise Lines, Princess Cruises, Holland America Line, and others. Through travel agents and wholesalers carnival sells their cruise.

The currency of UK British pound sterling GBP is extremely productive and capitalist economy with a strong financial service industry. However, in order to invest in UK market, UK currency analysis is essential. From the global perspective the British pound is undervalued. The PPP (purchase price parity) shows that the British pound ought to ...