Norwegian Cruise Line Holdings Ltd (NCLH)

Debt-to-assets ratio

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
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 assets US$ in thousands 19,493,000 19,251,800 18,648,200 18,350,700 18,557,700 18,950,900 19,113,200 19,255,500 18,729,800 18,730,000 18,526,600 18,973,800 18,399,300 17,402,000 17,528,100 16,462,500 16,684,600 15,938,900 15,966,000 15,761,100
Debt-to-assets ratio 0.69 0.66 0.65 0.65 0.64 0.63 0.61 0.68 0.67 0.76 0.77 0.73 0.77 0.69 0.64 0.52 0.42 0.40 0.41 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 been relatively stable in recent quarters, fluctuating within the range of 0.69 to 0.73. This ratio indicates that, on average, approximately 70-73% of the company's assets are funded by debt. A ratio above 0.5 suggests that the company relies more on debt financing than equity financing to support its operations and investments.

The consistency of the ratio around 0.70-0.73 indicates that Norwegian Cruise Line Holdings Ltd maintains a significant level of leverage in its capital structure. This reliance on debt can magnify both returns and risks for the company. While debt can be a cost-effective way to finance growth, it also exposes the company to increased interest payments and potential financial constraints, particularly in times of economic uncertainty or industry downturns.

In comparison to industry benchmarks and peers, Norwegian Cruise Line's debt-to-assets ratio appears to be slightly on the higher side. Investors and stakeholders may closely monitor this ratio to assess the company's ability to meet its debt obligations, manage financial risks, and generate sustainable returns in the long term. Additionally, any significant shifts in the debt-to-assets ratio over time may signal changes in the company's financial health and risk profile.