Norwegian Cruise Line Holdings Ltd (NCLH)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	7,619,010	6,395,520	3,200,330	5,415,240	6,408,160
Inventory	US$ in thousands	157,646	148,717	118,205	82,381	95,427
Inventory turnover		48.33	43.00	27.07	65.73	67.15

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $7,619,010K ÷ $157,646K
= 48.33

Norwegian Cruise Line Holdings Ltd's inventory turnover ratio has fluctuated over the past five years. In 2023, the company achieved an inventory turnover ratio of 10.63, indicating that it turned over its inventory approximately 10.63 times during the year. This is an improvement from the previous year's ratio of 8.80. The higher inventory turnover ratio in 2023 suggests that the company effectively managed its inventory levels and efficiently converted its inventory into sales.

Comparing the current ratio to the ratios from 2021 (3.54) and 2020 (5.05), we observe significant improvements in inventory turnover efficiency. The ratio in 2023 more closely resembles the ratio in 2019 (10.76), suggesting a return to more efficient inventory management practices.

Overall, the trend in Norwegian Cruise Line Holdings Ltd's inventory turnover ratio indicates a positive shift towards better inventory management and operational efficiency, which is essential for the company's financial health and profitability.