Down 54% year to date, Carnival (NYSE: CCL) stock has dropped substantially in 2022. And while that might garner the attention of bargain-hungry investors, it may pay to look before you leap at the shares. The company's cash burn and overleveraged balance sheet could become major problems, especially as global macroeconomic challenges like inflation and rising interest rates mount. 

Carnival is the global leader in cruise ship operations, with a market share of 45%. But the company's scale and geographic diversification were not enough to shield it from the impacts of the COVID-19 pandemic -- a crisis it is still struggling to recover from. 

Third-quarter revenue came in at $4.3 billion. And while this is a massive improvement from the $546 million earned in the prior-year period, it is still far from the $6.53 billion the company generated in Q3 2019. 

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Source Fool.com