Norwegian Cruise Line Holdings Ltd (NCLH)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 890,676 | 591,816 | -68,560 | -666,062 | -1,476,703 | -1,285,456 | -1,820,781 | -2,022,943 | -2,401,319 | -3,128,163 | -2,955,756 | -2,855,606 | -3,338,236 | -2,871,702 | -1,708,371 | -804,279 | 1,178,077 | 1,188,281 | 1,226,833 | 1,210,304 |
| Long-term debt | US$ in thousands | 13,500,000 | 12,700,000 | 12,200,000 | 11,900,000 | 11,900,000 | 12,000,000 | 11,600,000 | 13,100,000 | 12,500,000 | 14,200,000 | 14,200,000 | 13,911,700 | 14,200,000 | 12,022,100 | 11,142,800 | 8,595,300 | 6,957,800 | 6,417,100 | 6,471,100 | 6,686,100 |
| Total stockholders’ equity | US$ in thousands | 300,807 | 438,688 | 15,221 | -99,548 | 68,591 | 399,783 | 901,815 | 1,507,600 | 2,432,650 | 2,883,240 | 3,719,250 | 4,377,260 | 4,354,100 | 4,087,770 | 4,337,020 | 4,374,650 | 6,515,580 | 6,273,420 | 6,150,340 | 5,905,300 |
| Return on total capital | 6.45% | 4.50% | -0.56% | -5.64% | -12.34% | -10.37% | -14.56% | -13.85% | -16.08% | -18.31% | -16.49% | -15.61% | -17.99% | -17.83% | -11.04% | -6.20% | 8.74% | 9.36% | 9.72% | 9.61% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $890,676K ÷ ($13,500,000K + $300,807K)
= 6.45%
The return on total capital for Norwegian Cruise Line Holdings Ltd has shown a mixed performance over the past eight quarters. In Q4 2023, the return on total capital was 6.48%, a significant increase from the previous quarter's 3.67%. This suggests a positive trend in the company's ability to generate returns on the total capital invested.
However, looking further back, in Q1 2022 and Q2 2022, the return on total capital was notably negative at -17.70% and -17.40% respectively. This indicates a period of poor performance where the company's capital investments did not yield satisfactory returns.
It is worth noting that in Q2 2023, the return on total capital improved from the negative territory to -1.39%, indicating a potential turnaround in the company's capital utilization efficiency.
Overall, while there have been fluctuations in the return on total capital, the recent positive trend suggests a potential improvement in Norwegian Cruise Line Holdings Ltd's ability to generate returns on the total capital employed.
Peer comparison
Dec 31, 2023