Norwegian Cruise Line Holdings (WBO:NCLH) Beneish M-Score : -3.03 (As of May. 11, 2024)

View and export this data going back to 2017. Start your Free Trial

What is Norwegian Cruise Line Holdings Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -3.03 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Norwegian Cruise Line Holdings's Beneish M-Score or its related term are showing as below:

WBO:NCLH' s Beneish M-Score Range Over the Past 10 Years
Min: -220.12 Med: -2.44 Max: 1002.78
Current: -3.03

During the past 13 years, the highest Beneish M-Score of Norwegian Cruise Line Holdings was 1002.78. The lowest was -220.12. And the median was -2.44.

Norwegian Cruise Line Holdings Beneish M-Score Historical Data

The historical data trend for Norwegian Cruise Line Holdings's Beneish M-Score 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.

* Premium members only.

Norwegian Cruise Line Holdings Beneish M-Score Chart

Norwegian Cruise Line Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-2.44

-4.83

98.15

-5.19

-3.06

Norwegian Cruise Line Holdings Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.67	-3.30	-3.20	-3.06	-3.03

Competitive Comparison of Norwegian Cruise Line Holdings's Beneish M-Score

For the Travel Services subindustry, Norwegian Cruise Line Holdings's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Norwegian Cruise Line Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Norwegian Cruise Line Holdings's Beneish M-Score falls into.

Norwegian Cruise Line Holdings Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Norwegian Cruise Line Holdings for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.7658

0.528 * 0.5778

0.404 * 0.7462

0.892 * 1.4005

0.115 * 1.0399

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.6631

4.679 * -0.098526

0.327 * 0.9773

-3.05

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was €260 Mil.
Revenue was 2015.918 + 1821.58 + 2376.267 + 2035.669 = €8,249 Mil.
Gross Profit was 739.489 + 609.478 + 986.934 + 758.597 = €3,094 Mil.
Total Current Assets was €1,463 Mil.
Total Assets was €18,239 Mil.
Property, Plant and Equipment(Net PPE) was €15,146 Mil.
Depreciation, Depletion and Amortization(DDA) was €848 Mil.
Selling, General, & Admin. Expense(SGA) was €1,264 Mil.
Total Current Liabilities was €6,071 Mil.
Long-Term Debt & Capital Lease Obligation was €11,045 Mil.
Net Income was 15.965 + -97.647 + 324.078 + 79.485 = €322 Mil.
Non Operating Income was 16.686 + -32.339 + 11.3 + -7.424 = €-12 Mil.
Cash Flow from Operations was 742.597 + 237.503 + 196.863 + 953.719 = €2,131 Mil.

Total Receivables was €242 Mil.
Revenue was 1701.691 + 1434.058 + 1631.665 + 1123.073 = €5,890 Mil.
Gross Profit was 505.781 + 282.888 + 380.378 + 107.716 = €1,277 Mil.
Total Current Assets was €1,536 Mil.
Total Assets was €17,140 Mil.
Property, Plant and Equipment(Net PPE) was €13,551 Mil.
Depreciation, Depletion and Amortization(DDA) was €791 Mil.
Selling, General, & Admin. Expense(SGA) was €1,362 Mil.
Total Current Liabilities was €5,323 Mil.
Long-Term Debt & Capital Lease Obligation was €11,134 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(259.728 / 8249.434)	/	(242.176 / 5890.487)
	=	0.031484	/	0.041113
	=	0.7658

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(1276.763 / 5890.487)	/	(3094.498 / 8249.434)
	=	0.21675	/	0.375116
	=	0.5778

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (1462.942 + 15146.44) / 18239.173)	/	(1 - (1536.122 + 13550.87) / 17139.545)
	=	0.089357	/	0.119755
	=	0.7462

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	8249.434	/	5890.487
	=	1.4005

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(790.674 / (790.674 + 13550.87))	/	(848.004 / (848.004 + 15146.44))
	=	0.055132	/	0.053019
	=	1.0399

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(1264.452 / 8249.434)	/	(1361.519 / 5890.487)
	=	0.153277	/	0.231139
	=	0.6631

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((11044.872 + 6070.637) / 18239.173)	/	((11133.751 + 5323.367) / 17139.545)
	=	0.938393	/	0.960184
	=	0.9773

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(321.881 - -11.777	-	2130.682)	/	18239.173
	=	-0.098526

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Norwegian Cruise Line Holdings has a M-score of -3.05 suggests that the company is unlikely to be a manipulator.

Norwegian Cruise Line Holdings Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Norwegian Cruise Line Holdings's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Norwegian Cruise Line Holdings (WBO:NCLH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Norwegian Cruise Line Holdings Ltd (WBO:NCLH) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

NCLH:USA NCLH:Mexico 1NC:Germany N1CL34:Brazil

Address

7665 Corporate Center Drive, Miami, FL, USA, 33126

Website

https://www.nclhltdinvestor.com

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.