Norwegian Cruise Line Holdings Ltd (NCLH)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 19,493,000 | 18,557,700 | 18,729,800 | 18,399,300 | 16,684,600 |
| Total stockholders’ equity | US$ in thousands | 300,807 | 68,591 | 2,432,650 | 4,354,100 | 6,515,580 |
| Financial leverage ratio | 64.80 | 270.56 | 7.70 | 4.23 | 2.56 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $19,493,000K ÷ $300,807K
= 64.80
The financial leverage ratio of Norwegian Cruise Line Holdings Ltd has exhibited significant fluctuations over the past five years. In 2023, the ratio stands at 64.80, showing a considerable decrease from the previous year's high of 270.56. This reduction indicates a notable improvement in the company's leverage position compared to the prior year. However, it is important to note that the current ratio is still relatively high compared to levels seen in 2021, 2020, and 2019, where it ranged between 2.56 and 7.70.
The fluctuation in the financial leverage ratio suggests a varying level of debt utilization by the company to finance its operations and investments. A higher ratio indicates a higher level of debt relative to equity, implying increased financial risk and potential volatility in the company's financial performance. Conversely, a lower ratio reflects a more conservative financing structure with less reliance on debt for funding.
Overall, Norwegian Cruise Line Holdings Ltd's financial leverage ratio trend indicates a mix of periods with high and low leverage, highlighting the need for careful monitoring of the company's debt levels and capital structure to maintain a healthy financial position.
Peer comparison
Dec 31, 2023