Norwegian Cruise Line Holdings Ltd (NCLH)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	1,520,130	881,907	-1,532,940	-2,547,660	-3,534,810
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,425,440	300,807	68,591	2,432,650	4,354,100
Return on total capital		106.64%	293.18%	-2,234.90%	-104.73%	-81.18%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,520,130K ÷ ($—K + $1,425,440K)
= 106.64%

The return on total capital for Norwegian Cruise Line Holdings Ltd has shown significant fluctuations over the past five years. In December 2020 and 2021, the company reported negative returns of -81.18% and -104.73% respectively, indicating that the company did not generate profits sufficient to cover the total capital invested.

However, in December 2022, there was a drastic decline with a return of -2,234.90%, suggesting a substantial loss relative to the total capital employed. The significant negative return in 2022 could be a result of exceptional expenses or impairment charges affecting the company's financial performance.

The trend reversed in December 2023, with a notable increase in the return on total capital to 293.18%, indicating a strong profitability relative to the capital invested. This improvement could be attributed to better operational efficiency, cost management, or revenue growth initiatives undertaken by the company.

In the most recent period, December 2024, Norwegian Cruise Line Holdings Ltd maintained a positive trend with a return of 106.64%, demonstrating continued improvement in generating profits compared to the total capital employed.

Overall, the return on total capital for Norwegian Cruise Line Holdings Ltd has shown fluctuations over the years, with periods of negative returns followed by significant recoveries. Investors and stakeholders should closely monitor the company's financial performance and strategies to sustain and enhance profitability in the future.