Norwegian Cruise Line Holdings Ltd (NCLH)

Financial leverage 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
Total assets US$ in thousands 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 16,684,600 15,938,900 15,966,000 15,761,100
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
Financial leverage ratio 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 2.56 2.54 2.60 2.67

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 shown significant fluctuations over the past eight quarters. In Q1 2023, the ratio was exceptionally high at 1,225.16, indicating a substantial level of financial leverage compared to the company's equity. This sudden spike may be attributed to changes in the company's debt levels or asset values during that period.

Prior to Q1 2023, the company maintained relatively lower financial leverage ratios, with the lowest being 12.77 in Q1 2022, suggesting a more conservative debt-to-equity structure. However, the ratio experienced a sharp increase in Q2 and Q3 2022, reaching 21.19 and 47.40, respectively, which may have signaled a shift towards higher leverage in those quarters.

The recent decrease in Q3 2023 to 43.88 from the previous quarter's peak suggests a potential adjustment in the company's capital structure to reduce leverage. It will be crucial to monitor future trends to understand whether this decline in the financial leverage ratio is sustainable or a temporary fluctuation.

Overall, the fluctuating pattern of Norwegian Cruise Line Holdings Ltd's financial leverage ratio indicates varying degrees of reliance on debt financing over the analyzed period and underscores the importance of closely monitoring the company's capital structure to assess its financial risk and stability.