Norwegian Cruise Line Holdings Ltd (NCLH)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 300,807 | 68,591 | 2,432,650 | 4,354,100 | 6,515,580 |
| Debt-to-capital ratio | 0.98 | 0.99 | 0.84 | 0.77 | 0.52 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $13,500,000K ÷ ($13,500,000K + $300,807K)
= 0.98
The debt-to-capital ratio of Norwegian Cruise Line Holdings Ltd has been steadily increasing over the past five years. It stood at 0.51 in 2019, indicating that the company's debt made up only 51% of its total capital structure at that time. However, this ratio has been on an upward trajectory, reaching 0.98 by the end of 2023.
The rising trend in the debt-to-capital ratio suggests that Norwegian Cruise Line Holdings Ltd has been relying more heavily on debt financing compared to its equity over the years. This may indicate a growing level of financial leverage within the company, as it has been funding its operations and investments through debt obligations.
The increasing debt-to-capital ratio could raise concerns about the company's financial health and stability, as higher levels of debt increase interest expenses and financial risk. Investors and creditors may keep a close eye on this ratio to assess Norwegian Cruise Line Holdings Ltd's ability to meet its debt obligations and manage its overall capital structure effectively.
Peer comparison
Dec 31, 2023