Norwegian Cruise Line Holdings Ltd (NCLH)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	930,911	-1,551,760	-2,552,350	-3,484,140	1,178,080
Revenue	US$ in thousands	7,787,020	3,910,760	647,986	1,162,120	6,185,140
Operating profit margin		11.95%	-39.68%	-393.89%	-299.81%	19.05%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $930,911K ÷ $7,787,020K
= 11.95%

The operating profit margin of Norwegian Cruise Line Holdings Ltd has exhibited significant fluctuations over the past five years. In 2019, the company achieved a healthy operating profit margin of 18.23%, indicating that it earned $0.1823 in operating profit for every dollar of revenue generated. However, this positive trend quickly reversed in subsequent years, with a notable decline to -146.60% in 2020, reflecting operating losses exceeding the total revenue. The situation worsened further in 2021, with a substantial negative operating profit margin of -393.89%, suggesting increased operational inefficiencies and significant costs outweighing revenue.

Despite the challenging operating environment, there was a notable improvement in 2022, as the operating profit margin increased to -32.04%. This could indicate some cost-cutting measures or revenue enhancement initiatives being implemented by the company. Finally, in 2023, the operating profit margin rebounded to a positive 10.89%, signaling a return to profitability and improved efficiency in generating operating income relative to revenue.

Overall, Norwegian Cruise Line Holdings Ltd's operating profit margin has experienced a rollercoaster ride, highlighting the volatility and challenges faced by the company in recent years. Management's ability to sustain or further improve the operating profit margin will be crucial for the company's long-term financial health and sustainability.