Norwegian Cruise Line Holdings Ltd (NCLH)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	7,787,020	3,910,760	647,986	1,162,120	6,185,140
Receivables	US$ in thousands	280,271	326,272	1,167,470	20,578	75,109
Receivables turnover		27.78	11.99	0.56	56.47	82.35

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $7,787,020K ÷ $280,271K
= 27.78

The receivables turnover ratio for Norwegian Cruise Line Holdings Ltd has varied significantly over the past five years. In 2019 and 2020, the company had high receivables turnover ratios of 86.04 and 62.20, respectively, indicating that it was collecting its accounts receivable relatively quickly. However, this trend reversed in 2021, where the ratio plummeted to a mere 0.56, reflecting a substantial decrease in the efficiency of collecting receivables during that period.

The company managed to improve its receivables turnover significantly in 2022, with a ratio of 14.85, although it was still below the levels seen in the previous years. Subsequently, in 2023, the ratio increased further to 30.51, indicating a continued recovery in the efficiency of the company's accounts receivable management.

Overall, the fluctuation in Norwegian Cruise Line Holdings Ltd's receivables turnover ratios suggests varying effectiveness in managing its accounts receivable over the years. The company's ability to swiftly collect outstanding receivables improved in recent years, albeit not yet reaching the levels achieved in 2019 and 2020. Monitoring this ratio in conjunction with other financial metrics can provide valuable insights into the company's operational efficiency and liquidity management.