Norwegian Cruise Line Holdings Ltd (NCLH)

Days of inventory on hand (DOH)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Inventory turnover 40.83 42.24 40.49 36.66 34.69 32.31 33.29 32.97 28.69 24.16 19.21 15.09 13.60 10.14 9.21 10.62 20.55 29.21 38.58 44.80
DOH days 8.94 8.64 9.01 9.96 10.52 11.30 10.96 11.07 12.72 15.11 19.00 24.18 26.83 35.98 39.63 34.36 17.76 12.50 9.46 8.15

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 40.83
= 8.94

Days of Inventory on Hand (DOH) is a financial ratio that measures the number of days it takes for a company to sell its inventory. A lower number of days indicates that the company is selling its inventory more quickly, which is generally favorable as it minimizes holding costs and reduces the risk of obsolete inventory.

By analyzing the historical DOH data of Norwegian Cruise Line Holdings Ltd from March 31, 2020, to December 31, 2024, we can observe the following trends:

- The DOH increased steadily from March 31, 2020, to March 31, 2021, indicating that the company took longer to sell its inventory during this period, possibly due to operational disruptions caused by the global pandemic.
- A peak in DOH was observed on June 30, 2021, at 39.63 days, suggesting a significant delay in inventory turnover, which could have implications on cash flow and working capital management.
- Subsequently, the DOH started declining from September 30, 2021, to December 31, 2024, indicating an improvement in inventory management efficiency.
- The company achieved its lowest DOH of 8.64 days on September 30, 2024, showing a notable efficiency in inventory turnover.

Overall, the downward trend in DOH from June 30, 2021, to December 31, 2024, reflects an improvement in Norwegian Cruise Line Holdings Ltd's inventory management practices, leading to potentially better liquidity and operational performance. Monitoring this ratio over time can provide insights into the company's inventory control strategies and operational effectiveness.