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.
Peer comparison
Dec 31, 2023