Norwegian Cruise Line Holdings Ltd (NCLH)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	930,911	525,612	-182,936	-852,283	-1,551,757	-1,957,660	-2,461,536	-2,669,838	-2,552,348	-2,412,356	-2,241,033	-2,231,340	-3,484,134	-2,737,878	-1,708,371	-804,279	1,178,077	1,188,281	1,226,833	1,210,304
Total assets	US$ in thousands	19,493,000	19,251,800	18,648,200	18,350,700	18,557,700	18,950,900	19,113,200	19,255,500	18,729,800	18,730,000	18,526,600	18,973,800	18,399,300	17,402,000	17,528,100	16,462,500	16,684,600	15,938,900	15,966,000	15,761,100
Operating ROA		4.78%	2.73%	-0.98%	-4.64%	-8.36%	-10.33%	-12.88%	-13.87%	-13.63%	-12.88%	-12.10%	-11.76%	-18.94%	-15.73%	-9.75%	-4.89%	7.06%	7.46%	7.68%	7.68%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $930,911K ÷ $19,493,000K
= 4.78%

Operating Return on Assets (Operating ROA) reflects the company's ability to generate operating profits from its assets. Norwegian Cruise Line Holdings Ltd's Operating ROA has shown improvements over the past four quarters, from -13.87% in Q1 2022 to 4.78% in Q4 2023. This upward trend indicates that the company has been more efficient in utilizing its assets to generate operating income.

The negative Operating ROA figures in the earlier quarters were concerning, suggesting that the company was struggling to generate operating profits relative to its asset base. However, the positive turnaround in the recent quarters is a positive sign, indicating improved operational performance.

Overall, the recent positive Operating ROA suggests that Norwegian Cruise Line Holdings Ltd has been more effective in generating operating profits from its assets, which could be attributed to cost-cutting measures, revenue growth, or operational efficiency improvements. This improvement in Operating ROA bodes well for the company's operational performance and financial health.