(VIANEWS) – Shares of Carnival Plc (NYSE: CUK) dropped by a staggering 16.04% to $6.75 at 10:14 EST on Friday, after two successive sessions in a row of losses. NYSE is falling 1.63% to $13,608.29, following the last session’s downward trend. This seems, up until now, an all-around down trend exchanging session today.

Carnival Plc’s last close was $8.04, 67.7% under its 52-week high of $24.89.

Why is Carnival Plc stock going down?

One of the primary reasons that Carnival Plc stock is down is the company’s debt. The company has over $35 billion in debt, and only $7.5 billion in liquidity at the end of the second quarter. This means that if bookings slow or more customers cancel deposits, the company’s liquidity may be eroded. Additionally, rival cruise lines like Royal Caribbean and Norwegian Cruise Lines also saw their shares tank on Wednesday.

In an effort to save money, management is trying to increase profitability. However, a recent report from Morgan Stanley shows that Carnival’s profits are still not up to par. While the company remains optimistic that the summer season will bring profits, its debt is now a major worry for investors.

The company needs to grow to improve its balance sheet. With almost $36 billion in debt, analysts are concerned that it may not be able to cover the debt. While the return of cruising may have bolstered revenue, the company’s debt will take years to pay off. Moreover, rising interest rates and a possible recession could further damage the company’s bottom line.

The value of Carnival Plc stock can be assessed using a number of metrics and ratios. It is best to evaluate the stock using a combination of these metrics to find a good stock to buy. A value stock score of 81-100 indicates that the stock is a good buy. A value stock score of 56 is considered to be a deep value stock.

About Carnival Plc

Carnival Corporation & plc operates as a leisure travel company. The ships are operated under Carnival Cruise Line and Princess Cruises brands. It also offers port destinations, other services and has its own hotels, lodges as well as glass-domed railway cars, motor coaches, and private jets. The company sells cruises through travel agencies, vacation planners and tour operators. It operates internationally, including in the United States and Canada. There are 87 vessels with 223 000 lower berths. Carnival Corporation & plc is a Florida-based company that was established in 1972.

Earnings Per Share

As for profitability, Carnival Plc has a trailing twelve months EPS of $-13.02.

The company’s return on equity, which measures the profitability of a business relative to shareholder’s equity, for the twelve trailing months is negative -70.26%.

Volatility

Carnival Plc’s last week, last month’s, and last quarter’s current intraday variation average was a positive 2.88%, a negative 0.20%, and a positive 3.80%, respectively.

Carnival Plc’s highest amplitude of average volatility was 3.66% (last week), 3.08% (last month), and 3.80% (last quarter), respectively.

Moving Average

Carnival Plc’s worth is way below its 50-day moving average of $8.80 and way below its 200-day moving average of $14.28.

More news about Carnival Plc (CUK).

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