Last year was one of recovery for Carnival Corp. (NYSE: CCL)(NYSE: CUK). The cruise line operator benefited from a resurgence in travel as it posted record numbers. Shares of the company rose by 130% last year as a result.

But will that remain the case in 2024? Although business has been good, Carnival Corp. is carrying an awful lot of debt. And the key to bringing it down this year is generating ample free cash flow. If the company does that, it could result in another strong year for the travel stock.

Free cash flow is a company's operating cash flow after deducting capital expenditures. It tells investors how much cash the company has available to reinvest in its operations for further growth, pay dividends, or pay down debt. It's arguably just as important, if not more so, than accounting profits, which factor in noncash expenses.

Continue reading

Source Fool.com