Norwegian Cruise Line Holdings Ltd (NCLH)

Quick 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	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	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	280,271	239,416	219,116	259,289	326,272	393,118	598,256	544,961	1,167,470	990,384	422,598	18,581	20,578	78,496	74,213	96,277	75,109	67,698	75,134	57,054
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
Quick ratio		0.11	0.17	0.19	0.17	0.25	0.34	0.50	0.64	0.78	1.00	1.46	1.95	1.74	1.04	0.90	0.49	0.09	0.14	0.14	0.11

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($402,415K + $—K + $280,271K) ÷ $6,038,700K
= 0.11

The quick ratio of Norwegian Cruise Line Holdings Ltd has shown a declining trend over the past eight quarters, from 0.74 in Q1 2022 to 0.19 in Q4 2023. This indicates that the company's ability to quickly cover its short-term obligations with its most liquid assets has weakened significantly.

A quick ratio below 1.0 suggests that the company may have difficulty meeting its short-term financial obligations without relying on selling inventory or other current assets. The decreasing trend in the quick ratio could be a cause for concern as it may indicate potential liquidity issues or inefficiencies in managing short-term assets.

It is important for investors and analysts to closely monitor the company's liquidity position and management's strategies to improve the quick ratio in order to ensure the company's financial stability and ability to meet its short-term obligations.