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NCLH (Norwegian Cruise Line Holdings) ROC % : 11.54% (As of Sep. 2024)


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What is Norwegian Cruise Line Holdings ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Norwegian Cruise Line Holdings's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 11.54%.

As of today (2024-12-14), Norwegian Cruise Line Holdings's WACC % is 11.02%. Norwegian Cruise Line Holdings's ROC % is 5.86% (calculated using TTM income statement data). Norwegian Cruise Line Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Norwegian Cruise Line Holdings ROC % Historical Data

The historical data trend for Norwegian Cruise Line Holdings's ROC % 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 ROC % Chart

Norwegian Cruise Line Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.76 -10.84 -15.06 -8.13 4.39

Norwegian Cruise Line Holdings Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.47 2.18 3.55 5.71 11.54

Norwegian Cruise Line Holdings ROC % Calculation

Norwegian Cruise Line Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=930.911 * ( 1 - -1.84% )/( (20192.474 + 22985.286)/ 2 )
=948.0397624/21588.88
=4.39 %

where

Invested Capital(A: Dec. 2022 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=18557.694 - 1547.202 - ( 946.987 - max(0, 5054.851 - 1872.869+946.987))
=20192.474

Invested Capital(A: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=19492.99 - 1233.257 - ( 402.415 - max(0, 6038.701 - 1313.148+402.415))
=22985.286

Norwegian Cruise Line Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

ROC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=2764.84 * ( 1 - 1.44% )/( (23836.098 + 23404.816)/ 2 )
=2725.026304/23620.457
=11.54 %

where

Invested Capital(Q: Jun. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=20113.833 - 1329.309 - ( 594.098 - max(0, 6633.916 - 1582.342+594.098))
=23836.098

Invested Capital(Q: Sep. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=19786.003 - 1240.469 - ( 332.521 - max(0, 6038.515 - 1179.233+332.521))
=23404.816

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) 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.


Norwegian Cruise Line Holdings  (NYSE:NCLH) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Norwegian Cruise Line Holdings's WACC % is 11.02%. Norwegian Cruise Line Holdings's ROC % is 5.86% (calculated using TTM income statement data). Norwegian Cruise Line Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of 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.


Norwegian Cruise Line Holdings ROC % Related Terms

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Norwegian Cruise Line Holdings Business Description

Address
7665 Corporate Center Drive, Miami, FL, USA, 33126
Norwegian Cruise Line is the world's third-largest publicly traded cruise company by berths (around 66,500). It operates 32 ships across three brands—Norwegian, Oceania, and Regent Seven Seas—offering both freestyle and luxury cruising. The company redeployed its entire fleet as of May 2022. With 13 passenger vessels on order among its brands through 2036, representing 41,000 incremental berths, Norwegian is increasing capacity faster than its peers, expanding its brand globally. Norwegian sails to around 700 global destinations.
Executives
Faye L. Ashby officer: SVP & Chief Accounting Officer 7665 CORPORATE CENTER DRIVE, MIAMI FL 33126
Mark Kempa officer: EVP & CFO 7665 CORPORATE CENTER DRIVE, MIAMI FL 33126
Andrea Demarco officer: Pres. RSSC 7665 CORPORATE CENTER DRIVE, MIAMI FL 33126
Harry Sommer officer: Pres. & CEO of NCL 7665 CORPORATE CENTER DRIVE, MIAMI FL 33126
Zillah Byng-thorne director 7665 CORPORATE CENTER DRIVE, MIAMI FL 33126
Daniel S Farkas officer: EVP Gen. Counsel & Asst. Sec'y 5840 SW 117TH STREET, CORAL GABLES FL 33156
Jose E. Cil director 5505 BLUE LAGOON DRIVE, MIAMI FL 33126
Patrik Dahlgren officer: EVP, Vessel Operations 7665 CORPORATE CENTER DRIVE, MIAMI FL 33126
Del Rio Frank J director, officer: Pres. & CEO 8300 NW 33RD STREET, SUITE 100, MIAMI FL 33122
David Herrera officer: Pres. NCL 7665 CORPORATE CENTER DRIVE, MIAMI FL 33126
Del Rio Frank A. officer: Pres. Oceania Cruises C/O NEW BEGINNINGS ACQUISITION CORP., 800 1ST STREET, UNIT 1, MIAMI FL 33139
Jason Montague officer: Pres. & CEO of RSSC C/O PRESTIGE CRUISES INTERNATIONAL, INC., 8300 NW 33RD STREET, SUITE 100, MIAMI FL 33122
Howard J Sherman officer: Pres. & CEO Oceania Cruises 7665 CORPORATE CENTER DRIVE, MIAMI FL 33126
Russell W Galbut director 7665 CORPORATE DRIVE, MIAMI FL 33126
Harry C Curtis director C/O NORWEGIAN CRUISE LINE HOLDINGS, 7300 CORPORATE CENTER DRIVE, MIAMI FL 33126