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.