0.000000High0.000000Low0Volume0.000001Open0.000001Pre Close0.00Turnover0.00%Turnover Ratio0.00P/E (Static)0Shares0.00010052wk High0.00P/B0Float Cap0.00000152wk Low--Dividend TTM0Shs Float1.500000Historical High--Div YieldTTM0.00%Amplitude0.000001Historical Low--Avg Price1Lot Size
ROYAL OLYMPIC CRUISE LINE Stock Forum
ColumnsNCLH: financial woes are long-term
In order to continue operating, the company needed to use both debt and equity financing. At December 31, 2021 NCLH had a $6.8B long-term debt load. Not great considering the $252M cash balance and $730M in total current assets, however not an imminent danger. Fast forward to June 30, 2021 and the debt load now stands above $12B – an 80% increase. Considering that the company made $930M in net income in 2019, this is very concerning.
Further, shares have also been devalued by massive dilution. Diluted average shares outstanding have gone from 214M at December 31, 2019 to over 369M at June 30, 2021. This is a 72% increase in diluted shares over 18 months of time. Worse, the company will not be able to conduct buybacks, with the massive debt load needing to be serviced. It could be well over a decade before this would even be considered.
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