Norwegian Cruise Line Holdings Ltd (NCLH)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	300,807	438,688	15,221	-99,548	68,591	399,783	901,815	1,507,600	2,432,650	2,883,240	3,719,250	4,377,260	4,354,100	4,087,770	4,337,020	4,374,650	6,515,580	6,273,420	6,150,340	5,905,300
Debt-to-capital ratio		0.98	0.97	1.00	1.01	0.99	0.97	0.93	0.90	0.84	0.83	0.79	0.76	0.77	0.75	0.72	0.66	0.52	0.51	0.51	0.53

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 fluctuated over the past eight quarters. In Q1 2022, the ratio stood at 0.90, indicating that the company had a lower level of debt relative to its capital structure. However, there has been a consistent upward trend in the ratio since then, reaching its peak in Q2 2023 at 1.00, indicating a higher reliance on debt financing compared to equity.

The ratio remained relatively stable in Q3 2023 at 0.97 before increasing slightly to 0.98 in Q4 2023. This trend suggests that Norwegian Cruise Line Holdings Ltd may be taking on more debt to fund its operations or growth initiatives, potentially impacting the company's financial risk profile.

Overall, the increasing trend in the debt-to-capital ratio should prompt stakeholders to closely monitor Norwegian Cruise Line Holdings Ltd's debt levels and capital structure management to ensure the company maintains a healthy financial position and sustainable growth trajectory.