Norwegian Cruise Line Holdings Ltd (NCLH)

Total asset 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
Total assets	US$ in thousands	19,493,000	18,557,700	18,729,800	18,399,300	16,684,600
Total asset turnover		0.40	0.21	0.03	0.06	0.37

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $7,787,020K ÷ $19,493,000K
= 0.40

The total asset turnover ratio measures a company's efficiency in generating sales revenue from its total assets. Norwegian Cruise Line Holdings Ltd's total asset turnover has fluctuated significantly over the past five years.

In 2023, the total asset turnover ratio improved to 0.44, indicating that the company generated $0.44 in sales for every $1 of total assets during the year. This signifies an enhancement in the company's efficiency in utilizing its assets to generate revenue compared to the previous year.

In 2022, the total asset turnover was 0.26, representing a decrease from the previous year. This could suggest potential challenges in effectively utilizing assets to generate sales during the period.

The total asset turnover ratio was significantly low in 2021 at 0.03, indicating that the company struggled to generate sales relative to its total assets. This might be a cause for concern as it implies inefficiencies in asset utilization during that year.

Similarly, the total asset turnover ratio in 2020 was 0.07, showing a slight improvement from 2021 but still indicates suboptimal asset utilization for revenue generation.

In 2019, the total asset turnover was 0.39, indicating relatively efficient asset utilization for revenue generation. This suggests that Norwegian Cruise Line Holdings Ltd was more effective in generating sales from its total assets compared to the following years.

Overall, Norwegian Cruise Line Holdings Ltd's total asset turnover has shown fluctuations over the past five years, with 2023 showing improvement in asset utilization efficiency compared to the preceding years. Monitoring this ratio can provide insights into the company's operational efficiency and effectiveness in generating revenue from its assets.