Norwegian Cruise Line Holdings Ltd (NCLH)
Inventory turnover
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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cost of revenue (ttm) | US$ in thousands | 6,112,380 | 6,126,610 | 6,070,420 | 5,787,830 | 5,468,590 | 5,366,240 | 5,122,390 | 4,812,100 | 4,267,093 | 3,765,332 | 2,966,188 | 2,142,595 | 1,608,037 | 1,097,330 | 847,731 | 899,656 | 1,693,061 | 2,373,491 | 3,174,098 | 3,830,870 |
Inventory | US$ in thousands | 149,718 | 145,056 | 149,931 | 157,879 | 157,646 | 166,063 | 153,850 | 145,948 | 148,717 | 155,880 | 154,397 | 141,956 | 118,205 | 108,177 | 92,041 | 84,691 | 82,381 | 81,259 | 82,263 | 85,516 |
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 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,112,380K ÷ $149,718K
= 40.83
The inventory turnover of Norwegian Cruise Line Holdings Ltd has exhibited fluctuations over the period under consideration. Starting at a high of 44.80 in March 2020, the company's inventory turnover gradually decreased to 9.21 by June 2021, indicating a longer time taken to sell its inventory. However, from September 2021 onwards, there was an upward trend in the inventory turnover ratio, reaching 42.24 by September 2024. This suggests the company improved its inventory management efficiency, selling products at a faster rate.
A high inventory turnover ratio, such as the peak of 44.80, indicates strong sales relative to the level of inventory held, which is generally positive as it implies efficient inventory management and faster cash conversion. Conversely, a low turnover ratio, like the values seen in mid-2021, can signal weak sales, overstocking, or obsolete inventory concerns.
Overall, the increasing trend in inventory turnover from 2021 to 2024 indicates that Norwegian Cruise Line Holdings Ltd effectively managed its inventory levels to align with sales demand, which can lead to improved liquidity and profitability. However, ongoing monitoring of this ratio is necessary to ensure inventory levels remain optimized and in line with business operations.
Peer comparison
Dec 31, 2024
Dec 31, 2024