Price to earnings was measured using the adjusted close price on the date closest to the end of the year and reported earnings per share. The price-to-earnings ratio company’s fiscal illustrates the of future growth. Under similar circumstances a company market’s expectations with a higher price-to-earnings is expected to grow faster. Yet a high price-to-earnings makes a stock more risky. Since the ratios common-sized the numbers they were directly compared with each other. Increases in return on assets and operating margin were considered to be positive. Contrarily, a decreasing book to market was considered desirable. Price to earnings was interpreted in the context of the ratios produced. Graphs were also produced on all of the metrics for comparison purposes. MARKET SHARE AND STRATEGY Carnival Corporation: In 2011 Carnival Corporation & plc carried 9.5 billion passengers. This accounted for 49% of the passengers in the cruise industry that year. The percentage declined by 1% in 2012. During their fiscal year Carnival carried 9.8 bullion passengers, which amounted to a 48% market share in 2012. I believe in market share resulted from the negative headlines the Carnival’s decline company faced in 2012. The Board of Directors and Top Management Team did not do enough to address the public and reduce the negative headlines surrounding the event. This caused consumers to choose other cruise lines that they considered to be safer. I believe management strategy is built around being the biggest in the Carnival’s industry. Since the company is so big and will likely dominate the industry for the foreseeable future they will have to deal with increasing government scrutiny. Carnival Corporation differs
Price to earnings was measured using the adjusted close price on the date closest to the end of the company’s fiscal year and reported earnings per share. The price-to-earnings ratio illustrates the market’s expectations of future growth. Under similar circumstances a company with a higher price-to-earnings is expected to grow faster. Yet a high price-to-earnings makes a stock more risky. Since the ratios common-sized the numbers they were directly compared with each other. Increases in return on assets and operating margin were considered to be positive. Contrarily, a decreasing book to market was considered desirable. Price to earnings was interpreted in the context of the ratios produced. Graphs were also produced on all of the metrics for comparison purposes. MARKET SHARE AND STRATEGY Carnival Corporation: In 2011 Carnival Corporation & plc carried 9.5 billion passengers. This accounted for 49% of the passengers in the cruise industry that year. The percentage declined by 1% in 2012. During their fiscal year Carnival carried 9.8 bullion passengers, which amounted to a 48% market share in 2012. I believe Carnival’s decline in market share resulted from the negative headlines the company faced in 2012. The Board of Directors and Top Management Team did not do enough to address the public and reduce the negative headlines surrounding the event. This caused consumers to choose other cruise lines that they considered to be safer. I believe Carnival’s management strategy is built around being the biggest in the industry. Since the company is so big and will likely dominate the industry for the foreseeable future they will have to deal with increasing government scrutiny. Carnival Corporation differs
WedderburnThesis.docx