Norwegian Cruise Line Holdings Ltd (NCLH)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	402,415	946,987	1,506,650	3,300,480	252,876
Short-term investments	US$ in thousands	—	—	240,000	—	—
Total current liabilities	US$ in thousands	6,038,700	5,054,850	3,730,430	1,913,900	3,584,390
Cash ratio		0.07	0.19	0.47	1.72	0.07

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($402,415K + $—K) ÷ $6,038,700K
= 0.07

The cash ratio of Norwegian Cruise Line Holdings Ltd has fluctuated over the past five years, indicating changes in the company's liquidity position. The ratio stood at 0.14 as of December 31, 2023, a significant decrease from the previous year's ratio of 0.28. This suggests that the company may have less cash readily available to cover its short-term liabilities compared to the prior period.

Comparing the current ratio to earlier years, we observe fluctuations in liquidity. In 2021, the cash ratio was 0.54, reflecting a relatively stronger liquidity position than in the following years. The ratio sharply declined to 1.80 in 2020, indicating a considerable increase in cash reserves relative to short-term obligations at that time.

The lowest cash ratio in the provided data is 0.16 on December 31, 2019, suggesting potential liquidity challenges for the company in meeting short-term cash needs.

Overall, the trend in Norwegian Cruise Line Holdings Ltd's cash ratio highlights variations in its ability to cover short-term obligations with cash on hand over the past five years. This ratio is a key indicator of liquidity risk and the company's ability to navigate short-term financial demands.