Norwegian Cruise Line Holdings Ltd (NCLH)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,688,700 | 5,468,590 | 4,267,090 | 1,608,040 | 1,693,060 |
| Inventory | US$ in thousands | 149,718 | 157,646 | 148,717 | 118,205 | 82,381 |
| Inventory turnover | 38.00 | 34.69 | 28.69 | 13.60 | 20.55 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,688,700K ÷ $149,718K
= 38.00
The inventory turnover ratio of Norwegian Cruise Line Holdings Ltd has exhibited a fluctuating trend over the years, indicating varying efficiency in managing its inventory.
In 2020, the inventory turnover was 20.55, reflecting the company's ability to sell and replace its inventory over 20 times during the year. This ratio decreased to 13.60 in 2021, suggesting a slowdown in inventory movement or potential overstocking.
However, the ratio saw a significant improvement in 2022, reaching 28.69, indicating a more efficient utilization of inventory. This trend continued in 2023 and 2024, with inventory turnovers of 34.69 and 38.00, respectively.
The upward trend in inventory turnover from 2021 to 2024 showcases the company's enhanced inventory management, which could lead to improved cash flows and profitability through better control of costs related to inventory holding. Nevertheless, this metric should be monitored continuously to ensure sustained efficiency in inventory management.
Peer comparison
Dec 31, 2024