Norwegian Cruise Line Holdings Ltd (NCLH)

Financial leverage ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Total assets US$ in thousands 19,969,800 19,786,000 20,113,800 19,825,200 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
Total stockholders’ equity US$ in thousands 1,425,440 1,135,330 693,133 362,091 300,807 438,688 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
Financial leverage ratio 14.01 17.43 29.02 54.75 64.80 43.88 1,225.16 — 270.56 47.40 21.19 12.77 7.70 6.50 4.98 4.33 4.23 4.26 4.04 3.76

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $19,969,800K ÷ $1,425,440K
= 14.01

The financial leverage ratio of Norwegian Cruise Line Holdings Ltd has shown significant fluctuations over the data period. The ratio increased steadily from March 31, 2020, to March 31, 2022, indicating a rising level of financial leverage. However, there was a substantial spike in the ratio by June 30, 2022, and September 30, 2022, reaching 47.40, and then escalating to a remarkably high value of 270.56 by December 31, 2022. This sudden surge may suggest a sharp increase in debt relative to equity during that period.

The financial leverage ratio then dropped substantially by June 30, 2023, only to soar to 1,225.16 by September 30, 2023, which is an extraordinary level of financial leverage. The ratio decreased significantly by December 31, 2023, but remained high compared to historical levels. From that point onwards, the ratio continued to decline gradually until December 31, 2024, indicating a decrease in the company's reliance on debt financing relative to equity.

Overall, the data shows that Norwegian Cruise Line Holdings Ltd experienced significant fluctuation in its financial leverage ratio over the period, with periods of high leverage raising potential concerns about the company's debt levels and financial risk. Subsequently, the company made efforts to reduce its financial leverage to more manageable levels by the end of the period.