Norwegian Cruise Line Holdings Ltd (NCLH)

Days of sales outstanding (DSO)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		27.79	30.28	28.97	20.01	11.41	8.81	3.30	1.76	0.55	0.16	0.06	1.40	62.67	35.17	63.04	65.77	86.08	94.03	83.85	108.21
DSO	days	13.14	12.05	12.60	18.24	31.99	41.41	110.63	207.23	669.68	2,281.40	6,545.65	261.59	5.82	10.38	5.79	5.55	4.24	3.88	4.35	3.37

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 27.79
= 13.14

Norwegian Cruise Line Holdings Ltd's Days of Sales Outstanding (DSO) measure the average number of days it takes for the company to collect revenue after making a sale. Looking at the historical trend of DSO over the past eight quarters, we observe fluctuations in the collection efficiency of the company.

In Q1 2022, the DSO spiked significantly to 170.47 days, which indicates that the company took an extended period to collect revenue from sales during that quarter. This sharp increase may raise concerns about the company's credit policies, collection practices, or potential issues with customer payments.

Subsequently, there was a marked improvement in Q2 2022, with the DSO decreasing to 92.93 days, followed by a further reduction to 37.64 days in Q3 2022. These improvements suggest that the company may have implemented measures to enhance its collection processes and streamline its accounts receivable management.

However, in Q4 2022, the DSO increased to 24.59 days, indicating a slight delay in revenue collection compared to the previous quarter. The trend continued into Q1 2023, with the DSO rising to 15.40 days, suggesting a potential slowdown in the company's collection activities.

Despite the slight increase in Q1 2023, the DSO remained relatively low compared to the exceptionally high levels in Q1 2022, indicating a more efficient collection process. This trend continued in Q2 and Q3 2023, with DSO figures of 11.17 days and 10.81 days, respectively, reflecting the company's improved ability to collect revenue in a shorter timeframe.

Overall, the fluctuating DSO figures for Norwegian Cruise Line Holdings Ltd suggest that the company has experienced varying collection efficiencies in recent quarters. Management should continue to monitor DSO closely and implement strategies to maintain a healthy balance between timely revenue collection and customer relationships.