Norwegian Cruise Line Holdings Ltd (NCLH)

Payables 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
Payables	US$ in thousands	174,338	228,742	233,172	83,136	100,777
Payables turnover		43.70	27.96	13.73	65.14	63.59

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $7,619,010K ÷ $174,338K
= 43.70

Norwegian Cruise Line Holdings Ltd's payables turnover ratio has exhibited varying trends over the past five years. In 2023, the company's payables turnover stood at 9.61, representing a significant improvement from the previous year's figure of 5.72. This indicates that the company is paying off its suppliers approximately 9.61 times per year, signaling efficient management of its accounts payable. The sharp increase in the payables turnover ratio in 2023 suggests a more aggressive approach towards settling its payables.

Comparing to the figures from earlier years, the payables turnover in 2023 is notably higher than in 2022 (5.00) and closer to the ratio reported in 2019 (10.19). This implies that Norwegian Cruise Line Holdings Ltd has managed to return to a higher level of efficiency in its payables turnover after a slight dip in 2022. The company's payables turnover in 2021 (1.80) was comparatively lower, reflecting a slower pace of paying off its suppliers during that period.

Overall, the upward trend in Norwegian Cruise Line Holdings Ltd's payables turnover ratio from 2021 to 2023 indicates an improvement in managing its accounts payable and suggests a positive relationship with its suppliers in terms of timely payments.