Norwegian Cruise Line Holdings Ltd (NCLH)

Current ratio

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
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
Current ratio 0.17 0.20 0.24 0.24 0.16 0.30 0.32 0.29 0.37 0.46 0.62 0.77 0.89 1.12 1.59 2.09 1.86 1.14 1.06 0.57

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,010,100K ÷ $5,780,860K
= 0.17

The current ratio of Norwegian Cruise Line Holdings Ltd has shown fluctuating trends over the past few years, indicating variations in the company's short-term liquidity position. The ratio stood at 0.57 as of March 31, 2020, reflecting a relatively low level of current assets compared to current liabilities. However, the ratio improved significantly to 2.09 by March 31, 2021, suggesting a healthier liquidity position with significantly increased current assets relative to current liabilities.

Subsequently, the current ratio declined to 0.37 by December 31, 2022, and further decreased to 0.16 by December 31, 2023, indicating potential liquidity challenges with a drastic reduction in the ability to cover short-term obligations with current assets. This downward trend continued until December 31, 2024, with the current ratio standing at 0.17, reflecting a continued strain on the company's short-term liquidity position.

Overall, the fluctuating current ratio of Norwegian Cruise Line Holdings Ltd suggests varying levels of liquidity risk over the analyzed periods. It is important for the company to carefully manage its current assets and liabilities to ensure a healthy liquidity position that can support its short-term financial obligations.