Norwegian Cruise Line Holdings Ltd (NCLH)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	166,178	-2,269,910	-4,506,590	-4,012,510	930,228
Revenue	US$ in thousands	7,787,020	3,910,760	647,986	1,162,120	6,185,140
Net profit margin		2.13%	-58.04%	-695.48%	-345.28%	15.04%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $166,178K ÷ $7,787,020K
= 2.13%

The net profit margin of Norwegian Cruise Line Holdings Ltd has shown significant fluctuations over the past five years. In 2019, the company achieved a net profit margin of 14.39%, indicating that for every dollar of revenue generated, the company retained approximately 14.39 cents as profit. However, in subsequent years, the net profit margin deteriorated drastically, with negative figures recorded in 2020, 2021, and 2022.

The net profit margin plummeted to -695.48% in 2021, highlighting that the company incurred substantial losses exceeding its revenue for that year. Similarly, in 2020 and 2022, the net profit margin stood at -313.50% and -46.86%, respectively, signifying persistent challenges.

In 2023, there was a slight improvement as the net profit margin turned positive at 1.94%. Although this positive shift indicates a move towards profitability, the current net profit margin remains relatively low compared to the 2019 level.

The fluctuating net profit margins of Norwegian Cruise Line Holdings Ltd suggest underlying operational and financial instabilities within the company. Further analysis of the company's financial performance and business strategies is recommended to understand the factors driving these fluctuations and to assess the sustainability of the recent improvement in profitability.