Norwegian Cruise Line Holdings Ltd (NCLH)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 190,765 | 402,415 | 946,987 | 1,506,650 | 3,300,480 |
| Short-term investments | US$ in thousands | — | — | 0 | 240,000 | 0 |
| Total current liabilities | US$ in thousands | 5,780,860 | 6,038,700 | 5,054,850 | 3,730,430 | 1,913,900 |
| Cash ratio | 0.03 | 0.07 | 0.19 | 0.47 | 1.72 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($190,765K
+ $—K)
÷ $5,780,860K
= 0.03
The cash ratio of Norwegian Cruise Line Holdings Ltd has shown a decreasing trend over the past few years, declining from 1.72 in December 2020 to 0.47 in December 2021, further dropping to 0.19 in December 2022, and then to 0.07 in December 2023, with a significant decrease to 0.03 in December 2024.
A cash ratio below 1 indicates that the company may have difficulty meeting its short-term obligations with its current cash and cash equivalents alone. The decreasing trend in the cash ratio could signal potential challenges in liquidity management and ability to cover immediate financial obligations with available cash resources.
It is essential for investors and stakeholders to monitor the cash ratio closely, as a continued decline may raise concerns about the company's financial health and liquidity position. Management may need to implement strategies to improve cash management and ensure sufficient liquidity to meet short-term financial commitments effectively.
Peer comparison
Dec 31, 2024