Norwegian Cruise Line Holdings Ltd (NCLH)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 890,676 | -1,476,700 | -2,401,320 | -3,517,750 | 1,184,260 |
| Long-term debt | US$ in thousands | 13,500,000 | 11,900,000 | 12,500,000 | 14,200,000 | 6,957,800 |
| Total stockholders’ equity | US$ in thousands | 300,807 | 68,591 | 2,432,650 | 4,354,100 | 6,515,580 |
| Return on total capital | 6.45% | -12.34% | -16.08% | -18.96% | 8.79% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $890,676K ÷ ($13,500,000K + $300,807K)
= 6.45%
According to the data provided, Norwegian Cruise Line Holdings Ltd's return on total capital has shown fluctuations over the past five years. In 2023, the return on total capital was 6.48%, indicating a positive performance compared to the previous year when it was -11.33%. However, it is still below the level seen in 2019 when it stood at 8.85%.
The company experienced negative returns in 2021 and 2020, with figures of -17.15% and -11.61% respectively. These negative returns may suggest that the company's total capital allocation and utilization were not efficient during those years, resulting in lower profitability.
Overall, the trend in Norwegian Cruise Line Holdings Ltd's return on total capital indicates variability in performance over the period under review. It is essential for the company to continue monitoring and improving its capital management strategies to enhance its overall financial health and profitability.
Peer comparison
Dec 31, 2023