Norwegian Cruise Line Holdings — Earnings Quality Grade F
NCLH · Consumer Cyclical
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 11 days, change +2 days YoY
AR growth 31.7% exceeds revenue growth 3.7%
Revenue 3.7%, CFFO 1.9%. Cash follows revenue
Expense Quality
Inventory -7.7% vs COGS -0.9%. Normal
CapEx growth 169.2% is >2x revenue growth 3.7%
SG&A/Gross Profit = 37.0%. Normal
Gross margin 42.6%, change +2.6pp. Stable
Cash Flow Quality
CFFO/NI = 4.94. Profits backed by cash
FCF < 50% of Net Income for 2 years
Accruals ratio = -7.4%. Low accruals
Cash $0.2B covers only 1% of debt $14.6B
Balance Sheet Health
Goodwill+Intangibles $0.6B = 29% of equity. Manageable
Debt/EBITDA = 5.7x (>4x). Interest coverage = 1.6x (<2x). Financial stress
Other assets 12.2% vs revenue 3.7%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles change 0% YoY. Normal
Manipulation Score
M-Score = -2.59 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10