Norwegian Cruise Line Holdings Ltd (NCLH)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	772,907	163,176	-2,276,700	-4,501,320	-4,000,050
Revenue	US$ in thousands	9,479,650	8,549,920	4,843,760	647,986	1,279,910
Pretax margin		8.15%	1.91%	-47.00%	-694.66%	-312.53%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $772,907K ÷ $9,479,650K
= 8.15%

The pretax margin of Norwegian Cruise Line Holdings Ltd has shown significant fluctuations over the past five years.

As of December 31, 2020, the pretax margin was at a concerning level of -312.53%, indicating that the company was incurring substantial losses before taxes. This steep negative margin suggests that the company's operating expenses and other costs were surpassing its revenues during that period.

The situation worsened by the end of December 2021, with the pretax margin deteriorating to a staggering -694.66%. This indicates a further increase in losses before taxes, reflecting challenges faced by the company, potentially exacerbated by external factors like the COVID-19 pandemic which severely impacted the cruise industry.

However, there was a notable improvement by December 31, 2022, with the pretax margin improving to -47.00%. While still negative, this marks a significant decrease in losses before taxes compared to the previous years. This could suggest that the company implemented cost-cutting measures or witnessed a rebound in revenue during that period.

By the end of December 31, 2023, the company finally returned to a positive pretax margin of 1.91%, indicating that it started generating profits before taxes. This turnaround could be attributed to various factors such as improved operational efficiency, recovery in demand for cruise services, or strategic business decisions.

The positive trend continued into December 31, 2024, with the pretax margin further increasing to 8.15%. This demonstrates a continued growth in profitability before taxes, showcasing the company's ability to effectively manage its costs and drive revenue growth.

Overall, the pretax margin of Norwegian Cruise Line Holdings Ltd has exhibited a remarkable transformation from deep losses to profitability over the five-year period, reflecting the company's resilience and successful financial management strategies.