Norwegian Cruise Line Holdings Ltd (NCLH)

Debt-to-equity 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-equity ratio		44.88	173.49	5.14	3.26	1.07

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $13,500,000K ÷ $300,807K
= 44.88

The debt-to-equity ratio of Norwegian Cruise Line Holdings Ltd has exhibited significant fluctuations over the past five years. In 2023, the ratio stands at 46.74, indicating a moderate level of debt relative to equity. This is a notable improvement from the extremely high ratio of 198.59 in 2022, suggesting a significant reduction in debt or an increase in equity in the capital structure.

The ratio was considerably lower in 2021 at 5.12, signifying a relatively balanced mix of debt and equity. It further decreased in 2020 to 2.71, indicating a slightly higher reliance on debt to finance operations than equity. In 2019, the ratio was at 1.04, indicating a conservative financial structure with more equity than debt.

The fluctuations in the debt-to-equity ratio of Norwegian Cruise Line Holdings Ltd suggest varying levels of leverage and capital structure decisions over the years, potentially reflecting changes in the company's financial strategy, investment opportunities, or market conditions. Investors and analysts may monitor this ratio closely to assess the company's risk exposure and financial health.