Norwegian Cruise Line Holdings Ltd (NCLH)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 14.01 | 64.80 | 270.56 | 7.70 | 4.23 |
Based on the data provided, Norwegian Cruise Line Holdings Ltd has consistently maintained a low level of leverage and solvency risk over the years, as indicated by the following solvency ratios:
1. Debt-to-assets ratio: The company's debt-to-assets ratio has been consistently at 0.00 from 2020 to 2024. This suggests that Norwegian Cruise Line Holdings Ltd has not relied heavily on debt to finance its assets, indicating a strong financial position and low risk of insolvency related to asset coverage.
2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio has also remained at 0.00 across the years, indicating that the company has not used significant debt to fund its operations relative to its capital. This implies a healthy capital structure and lower financial risk.
3. Debt-to-equity ratio: The debt-to-equity ratio has also consistently been at 0.00 from 2020 to 2024. This ratio reflects the proportion of debt and equity used to finance the company's operations, and a ratio of 0 indicates that the company is not reliant on debt financing compared to equity, which is a positive sign for solvency.
4. Financial leverage ratio: The financial leverage ratio, which indicates the extent to which a company uses debt to finance its operations, has shown some fluctuations over the years. However, even with fluctuations, the ratio has not reached alarming levels and has remained relatively moderate, except for a significant increase in 2022. This indicates that the company has managed its debt levels reasonably well, with 2022 being an outlier year in terms of high leverage.
In summary, based on the solvency ratios analyzed, Norwegian Cruise Line Holdings Ltd appears to have a strong financial standing with low leverage and minimal reliance on debt for its operations, which bodes well for its solvency and financial stability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.03 | 1.21 | -1.91 | -1.23 | -7.33 |
The interest coverage ratio for Norwegian Cruise Line Holdings Ltd deteriorated significantly from -7.33 in December 2020 to -1.23 in December 2021 and further decreased to -1.91 in December 2022. This indicates that the company's operating income was insufficient to cover its interest expenses during these periods.
However, there seems to be a slight improvement in the interest coverage ratio by December 2023, reaching 1.21. This suggests that the company's operating income became adequate to cover its interest obligations. By December 2024, the interest coverage ratio further improved to 2.03, indicating even better financial health in terms of its ability to cover interest costs.
Overall, the trend in Norwegian Cruise Line Holdings Ltd's interest coverage ratio shows a recovery from poor levels in previous years, signaling a positive direction in the company's ability to meet its interest obligations with its operating income.