Norwegian Cruise Line Holdings Ltd (NCLH)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.69 | 0.66 | 0.65 | 0.65 | 0.64 | 0.63 | 0.61 | 0.68 | 0.67 | 0.76 | 0.77 | 0.73 | 0.77 | 0.69 | 0.64 | 0.52 | 0.42 | 0.40 | 0.41 | 0.42 |
| Debt-to-capital ratio | 0.98 | 0.97 | 1.00 | 1.01 | 0.99 | 0.97 | 0.93 | 0.90 | 0.84 | 0.83 | 0.79 | 0.76 | 0.77 | 0.75 | 0.72 | 0.66 | 0.52 | 0.51 | 0.51 | 0.53 |
| Debt-to-equity ratio | 44.88 | 28.95 | 801.52 | — | 173.49 | 30.02 | 12.86 | 8.69 | 5.14 | 4.93 | 3.82 | 3.18 | 3.26 | 2.94 | 2.57 | 1.96 | 1.07 | 1.02 | 1.05 | 1.13 |
| 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 |
The solvency ratios of Norwegian Cruise Line Holdings Ltd indicate the company's ability to meet its long-term financial obligations and the extent of its reliance on debt for financing.
The Debt-to-assets ratio has remained relatively stable around 0.70 to 0.73 over the quarters, indicating that approximately 70% to 73% of the company's total assets are financed by debt.
The Debt-to-capital ratio has fluctuated slightly but generally remained close to 1.00, implying that the company relies heavily on debt for capital structure, with around 97% to 99% of its capital being debt-financed.
The Debt-to-equity ratio has shown significant variations, ranging from a low of 9.00 to a high of 861.99, with the most recent quarter showing a ratio of 31.63. The spike in Q2 2023 suggests a substantial increase in debt relative to equity, which may raise concerns about the company's financial health and balance sheet leverage.
The Financial leverage ratio has also exhibited substantial fluctuations, with values ranging from 12.77 to a high of 1,225.16 in Q2 2023. This ratio indicates the extent to which the company relies on debt to finance its assets and operations, with higher values reflecting higher financial risk and leverage.
Overall, Norwegian Cruise Line Holdings Ltd's solvency ratios suggest a significant reliance on debt for financing, which may indicate higher financial risk and exposure to fluctuations in interest rates and debt repayment obligations. The wide variability in some ratios, particularly the Debt-to-equity and Financial leverage ratios, warrants further investigation to evaluate the company's long-term financial stability and risk management strategies.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.22 | 0.74 | -0.09 | -0.83 | -1.85 | -0.62 | -0.87 | -0.97 | -1.14 | -6.13 | -5.70 | -4.67 | -5.11 | -5.92 | -3.75 | -2.36 | 4.32 | 17.18 | 8.87 | 5.73 |
The interest coverage ratio for Norwegian Cruise Line Holdings Ltd fluctuated over the past eight quarters. In the most recent quarter, Q4 2023, the company's interest coverage ratio stood at 1.28, indicating that it generated enough operating income to cover its interest expenses. However, in the preceding quarters, the company faced challenges with its interest coverage ratio falling below 1, implying that its operating income was insufficient to cover its interest payments. Specifically, in Q3 2023, Q2 2023, and Q1 2023, the interest coverage ratios were 0.74, -0.27, and -1.32, respectively.
Looking further back, the company struggled with negative interest coverage ratios in Q4 2022, Q3 2022, Q2 2022, and Q1 2022, with values of -1.94, -1.24, -1.55, and -1.69, respectively. These negative ratios suggest that Norwegian Cruise Line Holdings Ltd was facing difficulties meeting its interest obligations with its operating income during those periods.
Overall, the trend in the interest coverage ratios indicates that the company has faced challenges in meeting its interest payments from operating income in recent quarters, although there has been some improvement in the most recent quarter. Investors and stakeholders should continue to monitor the company's financial performance and liquidity position closely.