Norwegian Cruise Line Holdings Ltd (NCLH)

Working capital turnover

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
Revenue (ttm) US$ in thousands 9,479,660 9,356,750 9,086,210 8,919,210 8,549,930 8,082,600 7,162,070 6,143,760 4,843,760 3,812,067 2,349,638 1,166,826 647,986 170,128 23,565 36,126 1,279,906 2,750,947 4,658,279 6,305,630
Total current assets US$ in thousands 1,010,100 1,179,230 1,582,340 1,590,150 945,748 1,611,300 1,848,580 1,644,670 1,872,870 2,157,380 3,131,750 3,214,510 3,301,570 3,281,200 3,465,450 3,779,320 3,557,540 2,652,500 2,750,670 1,696,340
Total current liabilities US$ in thousands 5,780,860 6,038,520 6,633,920 6,598,520 6,038,700 5,402,360 5,818,240 5,699,540 5,054,850 4,662,750 5,033,460 4,176,680 3,730,430 2,939,850 2,180,570 1,810,050 1,913,900 2,334,270 2,583,860 2,959,790
Working capital turnover — — — — — — — — — — — — — 0.50 0.02 0.02 0.78 8.64 27.93 —

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $9,479,660K ÷ ($1,010,100K – $5,780,860K)
= —

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. The ratio is calculated by dividing net sales by average working capital.

Looking at the historical data provided for Norwegian Cruise Line Holdings Ltd, the working capital turnover ratio fluctuated significantly over the observation period. In June 2020, the ratio was relatively high at 27.93, indicating that the company was able to generate $27.93 in sales for every dollar of working capital invested.

However, the ratio dropped sharply in subsequent periods, reaching a low of 0.02 in March and June 2021. This suggests that the company was less efficient in using its working capital to generate sales during that time.

Although there was a slight improvement in September 2021 with a ratio of 0.50, it still remained below the levels seen in 2020. The ratio then decreased further, falling to 0.78 in December 2020 and hitting zero or blank values in the subsequent quarters up to December 2024, which indicates a significant decline in the company's working capital efficiency.

Overall, the trend in Norwegian Cruise Line Holdings Ltd's working capital turnover ratio reflects fluctuations in the company's ability to efficiently convert its working capital into sales. It is important for the company to closely monitor and manage its working capital to improve efficiency and maintain financial health.