Norwegian Cruise Line Holdings Ltd (NCLH)

Return on assets (ROA)

		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
Total assets	US$ in thousands	19,493,000	18,557,700	18,729,800	18,399,300	16,684,600
ROA		0.85%	-12.23%	-24.06%	-21.81%	5.58%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $166,178K ÷ $19,493,000K
= 0.85%

The return on assets (ROA) for Norwegian Cruise Line Holdings Ltd has shown significant fluctuations over the past five years. The ROA was 0.85% at the end of 2023, indicating that the company generated a profit of 0.85% for every dollar of assets it owns.

In 2022, the ROA was -12.23%, reflecting a loss on assets, which could be attributed to various factors such as operational challenges or economic conditions impacting the cruise industry.

The ROA was even lower in 2021 at -24.06%, suggesting substantial losses relative to assets. This could indicate severe financial distress or poor asset utilization during that period.

Similarly, at the end of 2020, the ROA was -21.81%, indicating continued poor performance in generating returns from assets.

In contrast, at the end of 2019, the ROA was 5.58%, signifying a healthy return on assets for the company that year, indicating efficient asset utilization and profitability.

Overall, the fluctuating ROA figures over the years highlight the varying financial performance of Norwegian Cruise Line Holdings Ltd and underscore the importance of closely monitoring and analyzing asset management efficiency and profitability in the context of the company's operations and industry dynamics.