Norwegian Cruise Line Holdings Ltd (NCLH)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	402,415	681,600	899,135	700,600	946,987	1,200,000	1,903,240	2,136,840	1,506,650	1,369,820	2,365,140	3,303,030	3,300,480	2,356,210	2,259,950	1,360,260	252,876	407,258	419,925	304,708
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	240,000	565,000	385,000	205,000	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	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	3,584,390	3,399,590	3,582,550	3,429,420
Cash ratio		0.07	0.13	0.15	0.12	0.19	0.26	0.38	0.51	0.47	0.66	1.26	1.94	1.72	1.01	0.87	0.46	0.07	0.12	0.12	0.09

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 shown a declining trend over the past eight quarters. The ratio, which indicates the company's ability to cover its current liabilities with cash and cash equivalents, decreased from 0.61 in Q1 2022 to 0.14 in Q4 2023.

The decreasing cash ratio may suggest that the company is becoming less liquid and may face challenges in meeting its short-term financial obligations solely with cash on hand. A consistently low cash ratio could be a cause for concern as it may indicate that the company is not holding enough liquid assets to cover its immediate liabilities.

It is important for investors and stakeholders to monitor the cash ratio closely, as a low ratio could potentially signal financial difficulties or liquidity issues for the company. Management should consider strategies to improve liquidity, such as increasing cash reserves or managing current assets more effectively, to ensure the company's financial stability and ability to meet its obligations in a timely manner.