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Norwegian Cruise Line Holdings (WBO:NCLH) Sloan Ratio % : 1.55% (As of Sep. 2024)


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What is Norwegian Cruise Line Holdings Sloan Ratio %?

Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.

Norwegian Cruise Line Holdings's Sloan Ratio for the quarter that ended in Sep. 2024 was 1.55%.

As of Sep. 2024, Norwegian Cruise Line Holdings has a Sloan Ratio of 1.55%, indicating the company is in the safe zone and there is no funny business with accruals.


Norwegian Cruise Line Holdings Sloan Ratio % Historical Data

The historical data trend for Norwegian Cruise Line Holdings's Sloan Ratio % 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.

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Norwegian Cruise Line Holdings Sloan Ratio % Chart

Norwegian Cruise Line Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.72 -2.61 -5.52 -3.90 5.43

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
Sloan Ratio % 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 0.92 5.53 4.91 5.03 1.55

Competitive Comparison of Norwegian Cruise Line Holdings's Sloan Ratio %

For the Travel Services subindustry, Norwegian Cruise Line Holdings's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Norwegian Cruise Line Holdings's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Norwegian Cruise Line Holdings's Sloan Ratio % falls into.



Norwegian Cruise Line Holdings Sloan Ratio % Calculation

Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.

Norwegian Cruise Line Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2023 )-Cash Flow from Operations (A: Dec. 2023 )
-Cash Flow from Investing (A: Dec. 2023 ))/Total Assets (A: Dec. 2023 )
=(152.385-1839.24
--2656.68)/17875.072
=5.43%

Norwegian Cruise Line Holdings's Sloan Ratio for the quarter that ended in Sep. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Sep. 2024 )
=(498.064-1758.785
--1536.38)/17827.189
=1.55%

Norwegian Cruise Line Holdings's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was -97.647 (Dec. 2023 ) + 15.965 (Mar. 2024 ) + 151.832 (Jun. 2024 ) + 427.914 (Sep. 2024 ) = €498 Mil.
Norwegian Cruise Line Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 237.503 (Dec. 2023 ) + 742.597 (Mar. 2024 ) + 623.26 (Jun. 2024 ) + 155.425 (Sep. 2024 ) = €1,759 Mil.
Norwegian Cruise Line Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -633.2 (Dec. 2023 ) + -234.824 (Mar. 2024 ) + -339.669 (Jun. 2024 ) + -328.687 (Sep. 2024 ) = €-1,536 Mil.

* 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  (WBO:NCLH) Sloan Ratio % Explanation

A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.

According to How to Beat the Market with the Sloan Ratio:

If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.

If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.

If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.

As of Sep. 2024, Norwegian Cruise Line Holdings has a Sloan Ratio of 1.55%, indicating the company is in the safe zone and there is no funny business with accruals.


Norwegian Cruise Line Holdings Sloan Ratio % 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.