ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Norwegian Cruise Line Holdings's annualizedNet Income for the quarter that ended in Dec. 2023 was $-426 Mil.
Norwegian Cruise Line Holdings's average Total Assets over the quarter that ended in Dec. 2023 was $19,372 Mil. Therefore, Norwegian Cruise Line Holdings's annualized ROA % for the quarter that ended in Dec. 2023 was -2.20%.
The historical rank and industry rank for Norwegian Cruise Line Holdings's ROA % or its related term are showing as below:
NCLH'
s ROA % Range Over the Past 10 Years
Min: -24.28 Med: 3.67 Max: 6.52
Current: 0.88
During the past 13 years, Norwegian Cruise Line Holdings's highest ROA % was 6.52%. The lowest was -24.28%. And the median was 3.67%.
NCLH's ROA % is ranked worse than 59.25% of 832
companies
in the Travel & Leisure industry
Industry Median: 2.355
vs NCLH: 0.88
Norwegian Cruise Line Holdings ROA % Historical Data
The historical data trend for Norwegian Cruise Line Holdings's ROA % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Norwegian Cruise Line Holdings's ROA %
For the Travel Services subindustry, Norwegian Cruise Line Holdings's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Norwegian Cruise Line Holdings's ROA % Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Norwegian Cruise Line Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Norwegian Cruise Line Holdings's ROA % falls into.
Norwegian Cruise Line Holdings ROA % Calculation
Norwegian Cruise Line Holdings's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Dec. 2023) net income data.
ROA % is displayed in the 30-year financial page.
Norwegian Cruise Line Holdings (NYSE:NCLH) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Norwegian Cruise Line Holdings ROA % Related Terms
Thank you for viewing the detailed overview of Norwegian Cruise Line Holdings's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.
Norwegian Cruise Line Holdings (Norwegian Cruise Line Holdings) Business Description
Norwegian Cruise Line is the world's third-largest cruise company by berths (at more than 66,000), operating 31 ships across three brands (Norwegian, Oceania, and Regent Seven Seas), offering both freestyle and luxury cruising. The company had redeployed its entire fleet as of May 2022. With six passenger vessels on order among its brands through 2028 (representing 16,500 incremental berths), Norwegian is increasing capacity faster than its peers, expanding its brand globally. Norwegian sails to around 700 global destinations.
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