Norwegian Cruise Line Holdings Ltd (NCLH)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		48.33	43.00	27.07	65.73	67.15
DOH	days	7.55	8.49	13.48	5.55	5.44

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 48.33
= 7.55

The days of inventory on hand (DOH) for Norwegian Cruise Line Holdings Ltd have varied significantly over the past five years. In 2023, the DOH decreased to 34.35 days from 41.48 days in 2022, indicating a more efficient management of inventory. However, this is still higher compared to the more favorable DOH of 33.92 days in 2019.

The significant improvement from 103.00 days in 2021 to 34.35 days in 2023 suggests a commendable effort in reducing excess inventory and improving inventory turnover. This may be attributed to better inventory management practices, demand forecasting, or supply chain efficiency enhancements.

Overall, the downward trend in DOH over the years reflects a positive shift towards more optimal inventory levels for Norwegian Cruise Line Holdings Ltd, contributing to potentially better cash flow management and operational efficiency. Maintaining a balance between managing inventory levels and meeting customer demand will be essential for the company's continued success.