Norwegian Cruise Line Holdings Ltd (NCLH)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 2.16% | -63.54% | -930.82% | -365.98% | -3.61% |
| Operating profit margin | 11.95% | -39.68% | -393.89% | -299.81% | 19.05% |
| Pretax margin | 2.10% | -58.22% | -694.66% | -344.20% | 14.73% |
| Net profit margin | 2.13% | -58.04% | -695.48% | -345.28% | 15.04% |
Over the five-year period from 2019 to 2023, Norwegian Cruise Line Holdings Ltd experienced significant fluctuations in its profitability ratios.
The gross profit margin, which measures the percentage of revenue that exceeds the cost of goods sold, shows a decreasing trend from 2019 to 2021, followed by a significant increase in 2022 and 2023. This indicates that the company improved its efficiency in managing the cost of goods sold in 2022 and 2023 compared to the previous years.
The operating profit margin, which reflects the company's ability to generate profit from its core operations, shows negative values in 2020 and 2021, indicating operational losses. However, there is a notable improvement in 2022 and 2023 when the company turned the negative margins into positive ones.
The pretax margin, which measures the company's profitability before taxes, also shows negative values in 2020 and 2021, with improvements in 2022 and 2023. The significant positive change in 2022 and 2023 indicates that the company managed to control its expenses and generate profits before taxes.
Lastly, the net profit margin, which shows the company's profitability after all expenses have been deducted, displays a similar trend to the pretax margin. The significant improvement in 2022 and 2023 suggests that Norwegian Cruise Line Holdings Ltd was able to achieve profitability at the net level by efficiently managing its expenses and driving revenue growth.
In conclusion, Norwegian Cruise Line Holdings Ltd demonstrated a noteworthy rebound in its profitability ratios in 2022 and 2023 after facing challenges in 2020 and 2021. The improvements in the gross profit margin, operating profit margin, pretax margin, and net profit margin show the company's ability to enhance operational efficiency and financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.78% | -8.36% | -13.63% | -18.94% | 7.06% |
| Return on assets (ROA) | 0.85% | -12.23% | -24.06% | -21.81% | 5.58% |
| Return on total capital | 6.45% | -12.34% | -16.08% | -18.96% | 8.79% |
| Return on equity (ROE) | 55.24% | -3,309.34% | -185.25% | -92.15% | 14.28% |
Norwegian Cruise Line Holdings Ltd's profitability ratios have exhibited significant fluctuations over the past five years.
The Operating return on assets (Operating ROA) has shown inconsistency, with a positive figure of 4.78% in 2023, following negative values in the previous years. This indicates the company's ability to generate operating income relative to its total assets has improved in the most recent year.
The Return on assets (ROA) has similarly displayed volatility, with a positive figure of 0.85% in 2023. This metric reflects the company's overall profitability in relation to its total assets and suggests a modest improvement compared to the negative values of the preceding years.
The Return on total capital has rebounded in 2023 to 6.48%, signaling a positive trend in the company's ability to generate profits from its total invested capital. This contrasts with the negative figures recorded in the prior years.
The Return on equity (ROE) has experienced substantial variation, with a notably high return of 55.24% in 2023 after drastic negative values in the preceding years. This metric reflects the company's profitability from the shareholders' perspective, indicating a strong improvement in 2023.
In conclusion, Norwegian Cruise Line Holdings Ltd's profitability ratios have demonstrated fluctuations over the past five years, with a positive trend apparent in the most recent year. It is essential for the company to sustain this positive momentum and continue improving its profitability metrics to enhance shareholder value and financial performance.