The Motley Fool

OCTOBER 25, 2024

However, one goal may be even more important than all of these : reducing debt. Carnival's debt load remains alarming While Carnival's revenue and operating income have exceeded pre-pandemic levels, the cruise company's stock is still 68% below its all-time high of $66 , reached in early 2018. billion in long-term debt.

Debt 130

Debt Earnings Before Interest Amortization Depreciation 130

The Motley Fool

OCTOBER 5, 2024

Carnival's wall of debt First, let's take a quick look back in time at the challenges Carnival faced in recent years. The halt in sailings drove the previously profitable company to a loss, and resulted in Carnival building up a wall of debt. Carnival also has prepaid debt, for example prepaying $7.3 Image source: Getty Images.

Shareholders 130

Shareholders Debt Earnings Before Interest Amortization 130

The Motley Fool

APRIL 19, 2024

It has averaged a return on invested capital (ROIC) of about 12% over the past decade. Enterprise value takes into consideration a stock's net debt, while EBITDA removes non-cash expenses. The company currently plans to spend between $3.25 billion to $3.75

Enterprise Values 130

Enterprise Values Depreciation Leveraging Earnings Before Interest 130

The Motley Fool

DECEMBER 2, 2024

The company's balance sheet also remains in good shape, with net debt (adjusted for equity credit in junior subordinated notes) standing at three times adjusted EBITDA. It has an investment-grade rating on its debt and its weighted average cost of debt is only 4.7%, which is attractive in the current high interest rate environment.

Debt 130

Debt Enterprise Values Depreciation Assets 130

The Motley Fool

NOVEMBER 2, 2024

Its adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ) also rose 5% to nearly $2.44 It ended the quarter with leverage of 3x, which it defines as net debt adjusted for equity credit in junior subordinated notes (hybrids) divided by adjusted EBITDA. It produced distributable cash flow (DCF) of $1.96

Depreciation 130

Depreciation Debt Enterprise Values Earnings Before Interest 130

The Motley Fool

FEBRUARY 7, 2024

So, to examine this, investors can look at what each company is generating as a return on invested capital (ROIC). LOW Return on Invested Capital data by YCharts A high ROIC is excellent, but what a company pays for its capital, called the weighted average cost of capital, or WAAC , is just as important.

Debt 130

Debt Earnings Before Interest Amortization Depreciation 130

The Motley Fool

DECEMBER 23, 2023

s (NYSE: CCL) debt was enough to make investors cringe -- and flee the stock. Cruise operators were forced to halt sailings during the early stages of the pandemic, and as a result, Carnival took on more and more debt to stay afloat (excuse the pun). This is key because free cash flow is the tool to pay down debt.

Debt 130

Debt Earnings Before Interest Amortization Depreciation 130

The Motley Fool

AUGUST 3, 2024

Its adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ), meanwhile, climbed 10% to nearly $2.4 Over the past five years, Enterprise has averaged about a 13% return on invested capital, so these growth projects should provide meaningful growth to the company in the years ahead.

Depreciation 130

Depreciation Leveraging Enterprise Values Earnings Before Interest 130

The Motley Fool

DECEMBER 24, 2023

Yet, on the other hand, inflation and higher interest rates are a big counterweight to the bull case, as all major cruise companies are now loaded with debt -- a result of the emergency borrowing during the pandemic -- while also battling higher labor costs. In 2023, investors in the largest cruise company in the world, Carnival Corp.

Debt 130

Debt Enterprise Values Earnings Before Interest Amortization 130

The Motley Fool

JUNE 27, 2023

On the bottom line, Carnival continued to move in the right direction though the company is still facing stiff headwinds from its heavy debt burden, which jumped during the pandemic. The company is making progress on easing its debt burden as it prepaid more than $1 billion in short-term, variable-rate debt, though it still has about $7.5

Debt 130

Debt Earnings Before Interest Amortization Depreciation 130

The Motley Fool

AUGUST 18, 2024

Generating positive free cash flow (FCF) every year since the turn of the century, the stock has delivered total returns of 3,600% over that time -- or seven times the S&P 500 index's return. This $400 million outlay gives the company plenty of integration work to do as it focuses on paying down its $686 million net debt balance.

Mergers and Acquisitions 130

Mergers and Acquisitions Enterprise Values Debt Earnings Before Interest 130

The Motley Fool

JULY 7, 2024

Further, management said it had made substantial progress toward its 2026 "SEA Change" goals of sustainability; earnings before interest, taxes, depreciation, and amortization (EBITDA) per available lower berth day; and return on invested capital (ROIC). billion after Q2, even larger than Carnival's $26.3 billion market cap.

Earnings Before Interest 100

Earnings Before Interest Amortization Depreciation Banks 100

The Motley Fool

JUNE 25, 2024

Importantly, the company also continued to chip away at its debt load it accumulated during the pandemic. billion in debt, while repricing another $2.7 The company also issued $535 million in notes maturing in 2030 to pay off its 2026 unsecured notes, extending its debt maturities. In the second quarter, Carnival paid down $1.6

Debt 100

Debt Earnings Before Interest Amortization Depreciation 100

The Motley Fool

JANUARY 20, 2024

But its debt-to-equity ratio at 0.65 The company estimates it could generate an additional $300 million of annual adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) from this business in the coming years. CVX Dividend Per Share (Annual) data by YCharts. times is still dramatically higher than Chevron's 0.12

Leveraging 130

Leveraging Bidding Earnings Before Interest Amortization 130

The Motley Fool

DECEMBER 3, 2023

An excellent way to quantitatively answer this question is to compare its return on invested capital (ROIC) to its peer group, as historically, companies with a higher ROIC have tended to perform better over time. ROK Return on Invested Capital data by YCharts.

Professional Services 130

Professional Services Earnings Before Interest Amortization Depreciation 130

The Motley Fool

JULY 26, 2024

Royal Caribbean announced three goals less than two years ago as its fleet began returning to full operations. The third piece of its trifecta was to improve its capital allocation and operating income in order to set a new high-water mark for return on invested capital. This would shatter its pre-pandemic record of $87 in 2019.

Earnings Before Interest 130

Earnings Before Interest Amortization Depreciation Capital 130

The Motley Fool

AUGUST 12, 2023

Doximity says its customers get exceptional return on investment from marketing on the app, and the company has historically turned that into upsell opportunities for more marketing -- and, more recently, the upsell of app extensions like video conferencing and e-signature.

Earnings Before Interest 130

Earnings Before Interest Amortization Depreciation Legal 130

The Motley Fool

AUGUST 3, 2024

Management believes these acquisitions now grow sales by more than 10% annually, generate more than $3 billion in annualized sales, and maintain an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 20%.

Mergers and Acquisitions 130

Mergers and Acquisitions Earnings Before Interest Amortization Depreciation 130

The Motley Fool

JUNE 12, 2024

This figure excludes 149 million of depreciation. Free cash flow as a percentage of revenue has declined from 2023 due to higher cash interest expense from debt related to the VMware acquisition and higher cash taxes due to a higher mix of U.S. billion of cash and 74 billion of gross debt. Adjusted EBITDA was 7.4

Banks 246

Banks Resale Debt Portfolios 246

The Motley Fool

NOVEMBER 8, 2024

We are also excited to have several portfolio companies in the advanced stages of completing strategic acquisitions, which if successful, will provide the opportunity for additional future fair value appreciation in addition to providing us highly attractive incremental debt investments in these high-performing portfolio companies.

Capital 130

Capital Asset Management Due Diligence Assets 130

The Motley Fool

JANUARY 6, 2024

This three-year strategy -- introduced in June 2023 -- is a comprehensive approach aimed at bolstering Carnival's financial health, as indicated by improvements in earnings before interest, taxes, depreciation, and amortization ( EBITDA) and return on invested capital ( ROIC). billion and a significant reduction in debt by $4.6

Returns 100

Returns Investors Earnings Before Interest Amortization 100

The Motley Fool

JULY 25, 2024

In line with our stated financial strategy after funding our dividend, Core continued to dedicate free cash to paying down debt. During the quarter, Core's net debt was reduced by $15.8 This reduction in our outstanding debt also decreased our leverage ratio to 1.66, down from 1.76 million, net debt was $132.3

Leveraging 130

Leveraging Debt Shareholders Taxes 130

The Motley Fool

OCTOBER 24, 2024

In line with our stated financial strategy, after funding our dividend, Core continued to dedicate free cash to paying down debt. During the third quarter, Core's net debt was reduced by nearly $12 million or 9%. This reduction in our outstanding debt also decreased our leverage ratio to 1.47, down from 1.66 last quarter.

Leveraging 130

Leveraging Debt Shareholders Taxes 130

The Motley Fool

JUNE 26, 2023

compounded annually, which will allow us to use our cash flow generation to pay down debt and rebuild the balance sheet as we work toward investment-grade leverage metrics. During the quarter, we used excess liquidity to opportunistically prepay over $1 billion of debt while still retaining $7.3 billion off the peak.

Debt 130

Debt Leveraging Assets Enterprise Values 130

The Motley Fool

MARCH 7, 2024

To bring awareness to our innovation and product offerings, our marketing and creative teams ramped up our investments in social influencers, which delivered meaningful engagement and strong growth from new younger consumers. EPS was weighed down by noncash depreciation expenses from infrastructure investments. million or 5.2%

Depreciation 100

Depreciation Leveraging Mergers and Acquisitions Capital 100

The Motley Fool

SEPTEMBER 7, 2023

We are working to pivot our business toward a model that will streamline our operations and sell nonstrategic assets, improve the consistency of our earnings, increase EBITDA and dividends per share, reduce debt, rightsize the balance sheet, and improve the return on invested capital. Long-term debt as of July 31, 2023 was $40.7

Assets 130

Assets Debt Capital Leveraging 130

The Motley Fool

MAY 6, 2024

It's a very good question, and I think, honestly, we really focus on -- to the extent we do put in fresh capital, in addition to understanding what it means for our overall business and the totality of our company, it's also absolutely driven by return on investment, just like building a new shopping center. So, there's no add-back.

Taxes 130

Taxes Capital Assets Banks 130

The Motley Fool

JANUARY 8, 2024

million, producing a core margin of 16.2%, and an annualized return on invested capital of 14.9%. As can be seen on Slide 18, our net debt-to-EBITDA ratio now sits at just 0.3 Just because of the stark reduction in your debt, you point out really nicely on Slide 18, you kept the dividends flat. million, or 1.63

Securities and Exchange Commission (SEC) 130

Securities and Exchange Commission (SEC) Capital Shareholders Depreciation 130

The Motley Fool

AUGUST 4, 2023

Now that we've completed our two spinoffs, we have more opportunities to invest in driving long-term growth in LTL, a business that generates a high return on invested capital. We're also continuing to make strategic investments in our network to capitalize on upturns in demand. years from 5.9 years at the end of 2022.

Capital 130

Capital Depreciation Leveraging Companies 130

Hedgestone

JULY 10, 2023

This includes everything from equipment and inventory to debts and loans. The capitalization rate is determined by dividing the expected rate of return on investment by the risk-free rate of return. Subtract the value of the business’s liabilities, including debts and loans.

Liabilities 52

Liabilities Due Diligence Assets Earnings Before Interest 52

The Motley Fool

JULY 27, 2023

At the same time, we continue to execute on our key financial strategies including reducing net debt and strengthening our balance sheet. Depreciation and amortization for the quarter was 3.9 On the liability side of the balance sheet, our long term debt was $185 million at June 30th and considering cash of 22 -- 26.2

Leveraging 100

Leveraging Taxes Shareholders Debt 100

The Motley Fool

SEPTEMBER 12, 2023

Deidre Woollard: They don't have a lot of debt, so they've got runway, they've got time. How do you think investors earn that right if they want to practice this expectations investing approach? Return on invested capital is posited by lots of investors as being a really simple and grounded and rational way to look at a company.

Investing 130

Investing Capital Investors Companies 130

The Motley Fool

AUGUST 27, 2024

Rack stores that were opened last year are performing well delivering a solid return on investment while attracting new customers. We expect to complete this change by the end of the year, and as a result, plan to accelerate the depreciation of the IT assets that we will stop using. Cathy Smith -- Chief Financial Officer Yes.

Leveraging 130

Leveraging Taxes Depreciation Accounting 130

The Motley Fool

OCTOBER 17, 2024

and a trailing 12-month return on invested capital of 10%. million, excluding depreciation. Including depreciation, costs amounted to $25.3 As can be seen by Slide 21, our net debt-to-EBITDA ratio now sits at just 0.3 times, while net debt to capitalization is only 6%. million or $0.90 compares to 14.7%

Securities and Exchange Commission (SEC) 130

Securities and Exchange Commission (SEC) Capital Shareholders Banks 130

The Motley Fool

NOVEMBER 7, 2024

Depreciation and amortization expense was $4.2 million in net cash received from borrowing debt for lease termination liquidity and general working capital needs. Total long-term debt was $353.8 Impairment of goodwill and other assets was $4.5 million, flat compared to the prior-year period. Marketing fund expenses were $6.4

Legal 130

Legal Amortization Capital Taxes 130

The Motley Fool

FEBRUARY 15, 2024

For those who don't know what EBITDA is, it's earnings before interest, taxes, depreciation, and amortization, so think of it as earnings before really everything that matters. Now they're selling a lot of AI services that have a good return on investment. A lot of their incentives are tied to that.

Due Diligence 130

Due Diligence Assets Companies Returns 130

The Motley Fool

JUNE 20, 2024

Returning to our third quarter results, CMC's reported net earnings of 119.4 and a trailing EBITDA return on invested capital of 11.3%. On a pre-tax basis and excluding depreciation, mill operational commissioning costs were 11.8 As can be seen on Slide 19, our net debt to EBITDA ratio now sits at just 0.5

Securities and Exchange Commission (SEC) 130

Securities and Exchange Commission (SEC) Bidding Capital Shareholders 130