Norwegian Cruise Line Holdings Ltd (NCLH)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 38.00 | 34.69 | 28.69 | 13.60 | 20.55 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | — | — | 0.78 |
Based on the provided data for Norwegian Cruise Line Holdings Ltd, we can analyze the activity ratios as follows:
1. Inventory Turnover: The inventory turnover ratio measures how efficiently the company manages its inventory. A higher ratio indicates that the company is selling its inventory quickly. In this case, Norwegian Cruise Line Holdings' inventory turnover has shown an increasing trend over the years from 2020 to 2024, which is a positive sign. The ratio has improved significantly from 20.55 in 2020 to 38.00 in 2024, suggesting that the company is managing its inventory more efficiently over time.
2. Receivables Turnover: The receivables turnover ratio reflects how many times a company collects its accounts receivable during a period. The absence of data for receivables turnover indicates that the specific information on how efficiently the company is collecting its receivables during the given years is not available.
3. Payables Turnover: The payables turnover ratio measures how efficiently a company pays its suppliers. Similarly, the absence of data for payables turnover indicates that information about the company's payment efficiency to its suppliers is not provided in the dataset.
4. Working Capital Turnover: The working capital turnover ratio shows how efficiently a company is using its working capital to generate sales. The data shows that the working capital turnover ratio was reported as 0.78 in 2020 and is not available for the subsequent years. This ratio could not be compared across the years due to missing data.
Overall, based on the available information, it can be concluded that Norwegian Cruise Line Holdings has demonstrated an improvement in managing its inventory efficiently over the years. However, further analysis using additional data on receivables turnover, payables turnover, and working capital turnover would provide a more comprehensive understanding of the company's overall activity efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 9.61 | 10.52 | 12.72 | 26.83 | 17.76 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The activity ratios for Norwegian Cruise Line Holdings Ltd indicate the efficiency of the company in managing its operating cycle.
1. Days of Inventory on Hand (DOH):
- The company's inventory turnover has fluctuated over the years. As of December 31, 2020, the company held inventory for approximately 17.76 days, which increased to 26.83 days by December 31, 2021, suggesting a slower turnover rate.
- However, the trend reversed as of December 31, 2022, with inventory held for 12.72 days, further decreasing to 10.52 days by December 31, 2023, and finally to 9.61 days by December 31, 2024. This indicates a more efficient management of inventory in recent years, with inventory being turned over more quickly.
2. Days of Sales Outstanding (DSO):
- No data is provided for Days of Sales Outstanding, making it difficult to assess the company's efficiency in collecting its accounts receivable.
3. Number of Days of Payables:
- Similarly, there is no data available for the Number of Days of Payables, which would have indicated how long the company takes to pay its suppliers.
In summary, based on the available information, Norwegian Cruise Line Holdings Ltd has shown improved efficiency in managing its inventory turnover in recent years, but additional data on sales outstanding and payables would provide a more comprehensive analysis of the company's overall operating cycle efficiency.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 0.32 | 0.05 | 0.10 |
| Total asset turnover | 0.47 | 0.44 | 0.26 | 0.03 | 0.07 |
The fixed asset turnover ratio measures how efficiently a company generates sales from its fixed assets. For Norwegian Cruise Line Holdings Ltd, the fixed asset turnover ratio decreased from 0.10 in 2020 to 0.05 in 2021, indicating a decline in the company's ability to generate sales from its fixed assets. However, there was a significant improvement in 2022, with the ratio increasing to 0.32, suggesting a better utilization of fixed assets to generate revenue. Unfortunately, data for 2023 and 2024 is not available for further analysis.
Total asset turnover ratio indicates how effectively a company utilizes its total assets to generate revenue. Norwegian Cruise Line Holdings Ltd's total asset turnover ratio declined from 0.07 in 2020 to 0.03 in 2021, signifying a decrease in the company's overall asset utilization efficiency. However, there was a notable improvement in 2022, with the ratio increasing to 0.26, and further improvement in 2023 and 2024 where the ratio reached 0.44 and 0.47, respectively. This improvement suggests that the company has been more successful in generating revenue from its total assets in the latter years.
In conclusion, the analysis of Norwegian Cruise Line Holdings Ltd's long-term activity ratios indicates fluctuations in the utilization of fixed assets and overall assets for revenue generation. The company experienced both declines and improvements in efficiency over the years, reflecting changes in its operational performance and asset management strategies.