Carnival Corporation Ltd. stock research
FY2023 Q3
Carnival (CCL) Gross Margin — Quarter Ended Aug 31, 2023
Revenue increased substantially compared to both the prior quarter and the same quarter last year, while cost of revenue rose by a smaller proportion. As a result, gross profit grew more than proportionally, leading to a significantly higher gross margin.
Gross margin takeaway
Quarter ended Aug 31, 2023 · FY2023 Q3
Revenue increased substantially compared to both the prior quarter and the same quarter last year, while cost of revenue rose by a smaller proportion. As a result, gross profit grew more than proportionally, leading to a significantly higher gross margin.
- The strongest observable driver of the margin improvement was the relationship between revenue and cost of revenue: revenue growth outpaced the rise in cost of revenue, allowing gross profit to expand at a faster rate.
- Compared to the preceding quarter, gross margin improved from a lower level. Relative to the same quarter one year earlier, gross margin also increased from a weaker position.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.8%
Gross profit
$2.9B
Revenue
$6.9B
Cost of revenue
$3.9B
Quarter-over-quarter change
+13.2 pts
Year-over-year change
+21.3 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Feb 28, 2023 | $4.4B | $1.1B | $3.3B | 25.3% |
| May 31, 2023 | $4.9B | $1.5B | $3.5B | 29.6% |
| Aug 31, 2023 | $6.9B | $2.9B | $3.9B | 42.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 31, 2023
+13.2 pts
Year-over-year change
Aug 31, 2022
+21.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the margin improvement was the relationship between revenue and cost of revenue: revenue growth outpaced the rise in cost of revenue, allowing gross profit to expand at a faster rate.
Compared to the preceding quarter, gross margin improved from a lower level. Relative to the same quarter one year earlier, gross margin also increased from a weaker position.
Monitor the trend of cost of revenue relative to revenue, as any shift could affect gross margin.