Norwegian Cruise Line Holdings Ltd (NCLH)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios for Norwegian Cruise Line Holdings Ltd indicate a strong financial position in terms of debt management and capital structure.
The Debt-to-assets ratio has consistently been at 0.00, indicating that the company has not relied on significant debt to finance its assets. This suggests that the company's assets are primarily financed through equity rather than debt, which is a positive sign for investors and creditors.
The Debt-to-capital ratio has also been maintained at 0.00 for most of the periods, indicating that the company's capital structure is not heavily reliant on debt. This ratio provides insight into the extent to which debt is used to finance operations relative to equity, and a lower ratio signifies lower financial risk.
The Debt-to-equity ratio, like the previous ratios, has remained at 0.00 throughout the periods, further emphasizing that the company has a low level of debt in relation to its equity. A low debt-to-equity ratio indicates a conservative financial structure and a lower risk of financial distress.
The Financial leverage ratio, which measures the proportion of a company's assets that are financed with debt relative to equity, shows some fluctuations over the periods but generally remains at manageable levels. The spike in the ratio observed in some periods may signal increased financial risk, particularly when it exceeds industry norms.
Overall, based on the solvency ratios analysis, Norwegian Cruise Line Holdings Ltd appears to have a solid financial foundation with prudent debt management practices and a healthy capital structure, indicating a lower risk of default and financial instability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.00 | 1.69 | 1.52 | 1.41 | 1.22 | 0.74 | -0.25 | -1.29 | -1.90 | -1.18 | -1.51 | -1.63 | -1.17 | -1.84 | -1.76 | -1.81 | -3.95 | -2.94 | -0.33 | 3.05 |
The interest coverage ratio of Norwegian Cruise Line Holdings Ltd has exhibited fluctuations over the periods reported. From March 31, 2020, to June 30, 2022, the company experienced negative interest coverage ratios, indicating that it was not generating enough operating income to cover its interest expenses. This raises concerns about the company's ability to meet its interest obligations with its current earnings levels.
However, from September 30, 2023, onwards, the interest coverage ratio improved progressively, reaching a positive territory. The positive trend suggests that the company's operating income started to exceed its interest expenses, signaling a healthier financial position in terms of debt servicing ability.
By December 31, 2024, the interest coverage ratio had reached 2.00, indicating that the company's operating profits were double its interest expenses, which is a positive sign for investors and creditors. This improvement suggests that Norwegian Cruise Line Holdings Ltd's financial position has strengthened over time, enhancing its ability to meet its interest payments and potentially reducing its financial risk.