Norwegian Cruise Line Holdings Ltd (NCLH)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	7,619,020	7,556,990	7,345,010	6,996,040	6,395,520	5,769,730	4,811,177	3,923,316	3,369,120	2,961,008	2,708,693	2,753,658	5,415,244	6,365,816	7,413,904	8,257,800	6,408,150	6,287,230	6,185,060	6,049,440
Inventory	US$ in thousands	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	95,427	94,254	90,956	90,101
Inventory turnover		48.33	45.51	47.74	47.94	43.00	37.01	31.16	27.64	28.50	27.37	29.43	32.51	65.73	78.34	90.12	96.56	67.15	66.71	68.00	67.14

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $7,619,020K ÷ $157,646K
= 48.33

Norwegian Cruise Line Holdings Ltd's inventory turnover has been showing a positive trend over the past eight quarters. The company's inventory turnover ratio has improved steadily from a low of 4.06 in Q1 2022 to a high of 10.63 in Q4 2023. This indicates that the company is efficiently managing its inventory levels, with inventory turning over more frequently in recent quarters.

The increasing trend in inventory turnover suggests that Norwegian Cruise Line Holdings Ltd is effectively selling its inventory and replenishing it in a timely manner. A higher inventory turnover ratio is generally seen as a positive sign, as it indicates that the company is able to sell through its inventory quickly, reducing the risk of obsolete or excess inventory.

Overall, the consistent improvement in inventory turnover reflects positively on Norwegian Cruise Line Holdings Ltd's inventory management practices and suggests that the company is effectively managing its working capital to support its operations and growth.