Norwegian Cruise Line Holdings Ltd (NCLH)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 13,500,000 | 11,900,000 | 12,500,000 | 14,200,000 | 6,957,800 |
| Total assets | US$ in thousands | 19,493,000 | 18,557,700 | 18,729,800 | 18,399,300 | 16,684,600 |
| Debt-to-assets ratio | 0.69 | 0.64 | 0.67 | 0.77 | 0.42 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $13,500,000K ÷ $19,493,000K
= 0.69
The debt-to-assets ratio of Norwegian Cruise Line Holdings Ltd has shown a gradual increase over the past five years, from 0.41 in 2019 to 0.72 in 2023. This indicates that the company's reliance on debt as a source of financing relative to its total assets has been on the rise.
A high debt-to-assets ratio suggests that a significant portion of the company's assets are financed through debt, which can increase financial risk due to higher interest payments and potential constraints on cash flow for debt repayment.
The consistent increase in the debt-to-assets ratio may raise concerns regarding Norwegian Cruise Line Holdings Ltd's ability to manage its debt obligations effectively, especially in times of economic downturn or financial distress when revenue and profitability might be under pressure.
It's essential for stakeholders to closely monitor the company's debt levels and financial performance to ensure that it maintains a healthy balance between debt and assets to sustain its operations and growth in the long term.
Peer comparison
Dec 31, 2023