Norwegian Cruise Line Holdings Ltd (NCLH)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.50 | 0.02 | 0.02 | 0.78 | 8.64 | 27.93 | — |
The activity ratios of Norwegian Cruise Line Holdings Ltd provide insights into the efficiency of the company's operations.
1. Inventory Turnover: The inventory turnover ratio shows how many times a company's inventory is sold and replaced over a specific period. The trend for Norwegian Cruise Line Holdings shows a decrease in inventory turnover from 44.80 in March 2020 to 40.83 in December 2024. A decreasing trend may indicate slower sales or potential inefficiencies in managing inventory.
2. Receivables Turnover: The lack of data for receivables turnover suggests that the company may not be providing sufficient details to calculate this ratio. It is essential for the company to disclose information related to receivables turnover to assess how effectively it is collecting on its credit sales.
3. Payables Turnover: Similar to receivables turnover, there is no data provided for payables turnover, making it challenging to analyze the efficiency of the company in managing its payables.
4. Working Capital Turnover: The working capital turnover ratio indicates how efficiently the company generates revenue from its working capital. Norwegian Cruise Line Holdings saw fluctuations in its working capital turnover, from a high of 27.93 in June 2020 to a low of 0.02 in March 2021 and beyond. A declining trend in working capital turnover may suggest inefficiencies in utilizing working capital to generate sales.
In conclusion, while the inventory turnover ratio provides some insights into the efficiency of Norwegian Cruise Line Holdings' operations, the lack of data for receivables and payables turnover ratios hinders a comprehensive analysis of the company's activity ratios. The fluctuations in working capital turnover highlight the need for further evaluation of the company's working capital management strategies.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 8.94 | 8.64 | 9.01 | 9.96 | 10.52 | 11.30 | 10.96 | 11.07 | 12.72 | 15.11 | 19.00 | 24.18 | 26.83 | 35.98 | 39.63 | 34.36 | 17.76 | 12.50 | 9.46 | 8.15 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data on the Days of Inventory on Hand (DOH) for Norwegian Cruise Line Holdings Ltd, we can observe the following trend:
The company's inventory turnover has improved over time as the number of days of inventory on hand has decreased consistently from 8.15 days as of March 31, 2020, to 8.94 days as of December 31, 2024. This indicates that Norwegian Cruise Line Holdings Ltd has been managing its inventory more efficiently, turning over its inventory at a faster pace.
Furthermore, the decreasing trend in the Days of Inventory on Hand suggests that the company has been effectively managing its inventory levels, potentially leading to lower carrying costs and reducing the risk of obsolete inventory.
Overall, the improvement in inventory turnover for Norwegian Cruise Line Holdings Ltd is a positive sign of efficient inventory management, which can contribute to better liquidity and profitability for the company.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 0.48 | 0.48 | 0.42 | 0.32 | 0.26 | 0.17 | 0.09 | 0.05 | 0.01 | 0.00 | 0.00 | 0.10 | 0.20 | 0.35 | 0.46 |
| Total asset turnover | 0.47 | 0.47 | 0.45 | 0.45 | 0.44 | 0.42 | 0.38 | 0.33 | 0.26 | 0.20 | 0.12 | 0.06 | 0.03 | 0.01 | 0.00 | 0.00 | 0.07 | 0.16 | 0.27 | 0.38 |
The fixed asset turnover ratio for Norwegian Cruise Line Holdings Ltd has shown a declining trend from March 2020 to September 2021, indicating that the company's ability to generate revenue from its fixed assets was decreasing during this period. However, there was a gradual improvement in the ratio from September 2021 to June 2023, suggesting enhanced efficiency in utilizing fixed assets to generate revenue. The ratio remained relatively stable at a moderate level from June 2023 to June 2024.
On the other hand, the total asset turnover ratio demonstrates a similar pattern to the fixed asset turnover ratio, albeit with a wider range. The total asset turnover ratio was relatively low between March 2020 and December 2021, indicating suboptimal utilization of total assets to generate revenue. From March 2022 onwards, there was a notable increase in the ratio, indicating an improvement in the company's overall efficiency in generating revenue from its total assets.
Overall, the trend in both fixed asset turnover and total asset turnover ratios suggests that Norwegian Cruise Line Holdings Ltd made significant strides in improving its asset utilization efficiency, particularly in the latter part of the period under consideration.