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.