Breakdown of Hvernig hefur þú það?
þú
you
það
it / there (existential) / the one (n)
hvernig
how
hafa
to have
Questions & Answers about Hvernig hefur þú það?
The translation says "How are you?", but where is the Icelandic word for "are"?
This greeting is a set phrase that doesn't use the verb "to be" (vera). Instead, it uses hefur (have). If you translate the sentence word-for-word, it actually asks "How have you it?".
What is the purpose of the word það at the end?
Það is the Icelandic word for "it". Because this greeting literally translates to "How have you it?", the word það acts as the "it" that you are asking about, representing the other person's life, day, or general situation.
Why does the verb hefur come before þú (you)?
This is due to the Icelandic verb-second rule. Whenever a question starts with a question word like Hvernig (How), the verb must immediately follow it in the second position. This forces the subject (þú) into the third spot.
Can I use this exact sentence to ask a group of people how they are doing?
No, because þú specifically means "you" when talking to just one person. If you are addressing two or more people, you must use the plural "you" (þið) and change the verb to match: Hvernig hafið þið það?