Norwegian Cruise Line Holdings Ltd (NCLH)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	910,257	166,178	-2,269,910	-4,506,590	-4,012,510
Total assets	US$ in thousands	19,969,800	19,493,000	18,557,700	18,729,800	18,399,300
ROA		4.56%	0.85%	-12.23%	-24.06%	-21.81%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $910,257K ÷ $19,969,800K
= 4.56%

Based on the provided data, Norwegian Cruise Line Holdings Ltd experienced a declining trend in return on assets (ROA) from December 31, 2020, to December 31, 2022, with ROA figures of -21.81%, -24.06%, and -12.23%, respectively. These negative ROA values indicate that the company's net income generated from its assets was insufficient to cover the costs associated with those assets during these years.

However, there was a notable improvement in the company's ROA as of December 31, 2023, when it turned positive at 0.85%. This positive ROA suggests that Norwegian Cruise Line Holdings Ltd was able to generate net income that exceeded the costs of its assets, indicating a potentially more efficient utilization of its assets to generate profits.

The most recent data point as of December 31, 2024, shows a further increase in ROA to 4.56%, signaling a significant improvement in the company's asset utilization and profitability compared to the previous years. This positive trend in ROA indicates that Norwegian Cruise Line Holdings Ltd has been able to enhance its operational efficiency and profitability, potentially reflecting better management of its assets to drive earnings growth.

In conclusion, Norwegian Cruise Line Holdings Ltd's return on assets (ROA) has shown a varied performance over the years, with recent improvements suggesting a positive trajectory in the company's asset utilization and profitability.