Norwegian Cruise Return On Equity vs. Profit Margin
| NCLH Stock | USD 26.76 0.72 2.76% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.5524406 | Current Value 0.58 | Quarterly Volatility 8.55320443 |
For Norwegian Cruise profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Norwegian Cruise to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Norwegian Cruise Line utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Norwegian Cruise's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Norwegian Cruise Line over time as well as its relative position and ranking within its peers.
Norwegian |
Norwegian Cruise's Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
Is Hotels, Resorts & Cruise Lines space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Norwegian Cruise. If investors know Norwegian will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Norwegian Cruise listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.34 | Earnings Share 1.14 | Revenue Per Share 21.674 | Quarterly Revenue Growth 0.107 | Return On Assets 0.044 |
The market value of Norwegian Cruise Line is measured differently than its book value, which is the value of Norwegian that is recorded on the company's balance sheet. Investors also form their own opinion of Norwegian Cruise's value that differs from its market value or its book value, called intrinsic value, which is Norwegian Cruise's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Norwegian Cruise's market value can be influenced by many factors that don't directly affect Norwegian Cruise's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Norwegian Cruise's value and its price as these two are different measures arrived at by different means. Investors typically determine if Norwegian Cruise is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Norwegian Cruise's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Norwegian Cruise Line Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Norwegian Cruise's current stock value. Our valuation model uses many indicators to compare Norwegian Cruise value to that of its competitors to determine the firm's financial worth. Norwegian Cruise Line is regarded third in return on equity category among its peers. It is rated below average in profit margin category among its peers fabricating about 0.08 of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for Norwegian Cruise Line is roughly 11.89 . As of now, Norwegian Cruise's Return On Equity is decreasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Norwegian Cruise's earnings, one of the primary drivers of an investment's value.Norwegian Cruise's Earnings Breakdown by Geography
Norwegian Profit Margin vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Norwegian Cruise |
| = | 0.7 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Norwegian Cruise |
| = | 0.06 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Norwegian Profit Margin Comparison
Norwegian Cruise is currently under evaluation in profit margin category among its peers.
Norwegian Cruise Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Norwegian Cruise, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Norwegian Cruise will eventually generate negative long term returns. The profitability progress is the general direction of Norwegian Cruise's change in net profit over the period of time. It can combine multiple indicators of Norwegian Cruise, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -508.4 M | -483 M | |
| Operating Income | 930.9 M | 977.5 M | |
| Income Before Tax | 163.2 M | 171.3 M | |
| Total Other Income Expense Net | -767.7 M | -729.3 M | |
| Net Income | 166.2 M | 174.5 M | |
| Income Tax Expense | 3 M | 2.9 M | |
| Net Loss | -2 B | -1.9 B | |
| Net Loss | -209.8 M | -220.3 M | |
| Non Operating Income Net Other | 142.5 M | 149.7 M | |
| Interest Income | 522.7 M | 326.9 M | |
| Net Interest Income | -707.3 M | -742.6 M | |
| Change To Netincome | 356.8 M | 448.4 M | |
| Net Income Per Share | 0.39 | 0.41 | |
| Income Quality | 12.07 | 12.67 | |
| Net Income Per E B T | 1.02 | 0.97 |
Norwegian Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Norwegian Cruise. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Norwegian Cruise position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Norwegian Cruise's important profitability drivers and their relationship over time.
Use Norwegian Cruise in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Norwegian Cruise position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Norwegian Cruise will appreciate offsetting losses from the drop in the long position's value.Norwegian Cruise Pair Trading
Norwegian Cruise Line Pair Trading Analysis
The ability to find closely correlated positions to Norwegian Cruise could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Norwegian Cruise when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Norwegian Cruise - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Norwegian Cruise Line to buy it.
The correlation of Norwegian Cruise is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Norwegian Cruise moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Norwegian Cruise Line moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Norwegian Cruise can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Norwegian Cruise position
In addition to having Norwegian Cruise in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Sports Thematic Idea Now
Sports
Companies in sporting activities arena as well as manufacturers of sporting goods and sport retailers. The Sports theme has 25 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Sports Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Correlation Analysis. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
To fully project Norwegian Cruise's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Norwegian Cruise Line at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Norwegian Cruise's income statement, its balance sheet, and the statement of cash flows.