Norwegian Cruise Line Holdings Ltd (NCLH)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 39.99% | 36.04% | 11.91% | -148.16% | -32.28% |
| Operating profit margin | 15.46% | 10.89% | -32.04% | -393.89% | -272.22% |
| Pretax margin | 8.15% | 1.91% | -47.00% | -694.66% | -312.53% |
| Net profit margin | 9.60% | 1.94% | -46.86% | -695.48% | -313.50% |
The profitability ratios of Norwegian Cruise Line Holdings Ltd have shown significant fluctuations over the years. The gross profit margin was deeply negative in 2020 and 2021, indicating that the company's cost of goods sold exceeded its revenue. However, there has been a notable improvement since 2022, with the gross profit margin steadily increasing to reach 39.99% by the end of 2024, indicating a healthier revenue generation relative to the cost of goods sold.
Similarly, the operating profit margin and pretax margin were severely negative in 2020 and 2021, suggesting significant operational and pre-tax losses. The company managed to turn around its performance from 2022 onwards, with both margins turning positive by the end of 2023 and increasing further in 2024. This indicates that Norwegian Cruise Line Holdings Ltd has been able to control its operating expenses and generate operating profits.
Finally, the net profit margin follows a similar trend, starting in deep negative territory in 2020 and 2021, but gradually improving to reach 9.60% by the end of 2024. The positive net profit margin in the later years signals that the company was able to generate profits after accounting for all expenses, including taxes and other costs.
Overall, the improving trend in all profitability ratios from 2022 onwards suggests that Norwegian Cruise Line Holdings Ltd has been successful in enhancing its operational efficiency and profitability over the analyzed period.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.34% | 4.78% | -8.36% | -13.63% | -18.94% |
| Return on assets (ROA) | 4.56% | 0.85% | -12.23% | -24.06% | -21.81% |
| Return on total capital | 106.64% | 293.18% | -2,234.90% | -104.73% | -81.18% |
| Return on equity (ROE) | 63.86% | 55.24% | -3,309.34% | -185.25% | -92.15% |
Norwegian Cruise Line Holdings Ltd has experienced a significant improvement in its profitability ratios over the past few years, based on the provided data.
- The operating return on assets (Operating ROA) has shown a positive trend, increasing from negative figures in 2020 and 2021 to 7.34% in 2024. This improvement indicates that the company is generating a better operating income relative to its total assets.
- The return on assets (ROA) has also shown a positive trend, moving from negative percentages in 2020 and 2021 to 4.56% in 2024. This indicates that the company's overall profitability in relation to its total assets has improved over the years.
- The return on total capital has seen a remarkable turnaround, with a significant improvement from negative figures in 2020 and 2021 to 106.64% in 2024. This suggests that the company is generating higher returns on its total invested capital.
- The return on equity (ROE) has also exhibited a notable improvement, shifting from extremely negative percentages in 2020 and 2021 to 63.86% in 2024. This indicates that the company is delivering better returns to its shareholders on their equity investment.
Overall, Norwegian Cruise Line Holdings Ltd has shown a positive trajectory in its profitability ratios, reflecting improved operational efficiency and financial performance over the years.