Pursuit Attractions and Hospitality, Inc. (PRSU)

Short-term

Turnover ratios

The activity ratios of Pursuit Attractions and Hospitality, Inc. from December 31, 2020, to December 31, 2024, exhibit notable fluctuations indicative of changes in operational efficiency and working capital management.

Inventory Turnover:
Historically, the inventory turnover ratio was relatively high in 2020 (60.92) and 2021 (64.59), suggesting efficient inventory management during those years. However, a significant decline occurred in 2022 (25.52), indicating a slowdown in inventory sales or increased inventory levels relative to sales. This was somewhat partially reversed in 2023 (31.34) and 2024 (32.65), reflecting a stabilization or modest improvement in inventory turnover efficiency.

Receivables Turnover:
The receivables turnover ratio experienced a dramatic decline from 22.86 in 2020 to 5.40 in 2021, and further to 2.44 in 2022, implying that the company extended more credit or faced difficulties collecting receivables during these years. A sharp increase occurred in 2023 (39.44), signaling a significant improvement in receivables collection efficiency, which then decreased again in 2024 to 20.27, indicating a partial decline but still remaining above pre-2021 levels.

Payables Turnover:
The payables turnover ratio decreased from 25.27 in 2020 to 7.96 in 2021 and 3.77 in 2022, reflecting an extension of the accounts payable period or delayed payments to suppliers during this period. In 2023, the ratio rebounded substantially to 20.15, and although it decreased again in 2024 to 14.49, it remained higher than 2021 and 2022 levels, denoting a moderation in the extension of payment periods but still indicative of more aggressive accounts payable management compared to earlier years.

Working Capital Turnover:
This ratio was not available in 2020 but surged to 22.56 in 2021, then decreased to 10.53 in 2022. A remarkable increase to 107.52 was recorded in 2023, indicating highly efficient utilization of working capital during that year, possibly driven by increased revenue or better working capital management strategies. Conversely, in 2024, the ratio declined sharply to 8.94, suggesting less efficient utilization of working capital relative to the previous peak.

Overall, the data reveal substantial volatility in the company's activity metrics over the analyzed period. The initial years showed high inventory and receivables turnover ratios but declining effectiveness, whereas 2023 displayed notable improvements, especially in receivables and working capital management. The subsequent decline in 2024 suggests a return to more conservative operational efficiencies or changing business circumstances impacting these ratios.

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Average number of days

The activity ratios of Pursuit Attractions and Hospitality, Inc. over the period from December 31, 2020, to December 31, 2024, exhibit notable fluctuations that reflect changes in the company's operational efficiency and working capital management.

Days of Inventory on Hand (DOH):
The company's inventory holding period remained relatively stable from 2020 to 2021, with a slight reduction from 5.99 days to 5.65 days, indicating a consistent inventory turnover rate. However, in 2022, there was a significant increase to 14.30 days, suggesting that inventory was held longer during this period, potentially due to increased stock levels, slower inventory turnover, or changes in supply chain or demand patterns. In 2023 and 2024, the DOH decreased slightly to 11.65 days and 11.18 days, respectively, signaling an improvement in inventory management but still higher than the levels observed in 2020 and 2021.

Days of Sales Outstanding (DSO):
There was a notable volatility in accounts receivable collection periods. The DSO sharply increased from 15.97 days at the end of 2020 to 67.53 days in 2021, and further escalated dramatically to 149.61 days in 2022, indicating that the company experienced significant delays in collecting receivables during this period. This could reflect loosened credit policies, customer repayment issues, or slower cash collection processes. Conversely, in 2023, the DSO drastically declined to 9.26 days, implying that receivables were collected much more swiftly. In 2024, the DSO modestly increased to 18.01 days, suggesting a stabilization but still closer to short collection periods.

Number of Days of Payables:
The payment period extended from 14.44 days in 2020 to 45.87 days in 2021, indicating that the company delayed payments to suppliers longer than in the previous year. This trend continued into 2022 with a significant increase to 96.84 days, reflecting a substantial extension of accounts payable, which could be indicative of cash flow management strategies or financial stress. In 2023, the payable days decreased markedly to 18.12 days, suggesting a return to more prompt payment behavior. The 2024 figure increased slightly to 25.19 days, reflecting moderate extension in payments relative to 2023 but still substantially lower than in 2022.

Summary:
Overall, the activity ratios highlight periods of operational adjustment and strategic shifts. The sharp increase in DSO during 2022 points to a period of difficulties in receivables collection, whereas the subsequent rapid reduction indicates improved collection efficiency. Changes in inventory days suggest efforts to optimize stock levels following a notable increase in 2022. Variations in payable days reflect fluctuating capital management strategies, with extended credit terms in 2021 and 2022 possibly contributing to cash flow flexibility, followed by a move toward more timely payments in subsequent years.

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Long-term

The long-term activity ratios of Pursuit Attractions and Hospitality, Inc. reveal insights into the company's efficiency in utilizing its assets over the specified periods. Notably, the fixed asset turnover ratio is unavailable for all measured years, indicating either the company's fixed assets were not a significant component of total assets or that data was not reported, thereby limiting analysis of asset utilization specific to fixed assets.

In contrast, the total asset turnover ratio demonstrates notable fluctuation across the years. From December 31, 2020, and December 31, 2021, both reporting a ratio of 0.49, it suggests a consistent asset efficiency during that period, with approximately 49 cents of revenue generated per dollar of total assets. Moving into 2022, this ratio declines substantially to 0.27, indicating a decrease in the company's efficiency in converting its total assets into sales.

Subsequently, the ratio exhibits a modest recovery: increasing to 0.31 by December 31, 2023, and further improving to 0.43 at the end of 2024. This upward trend after the dip suggests a gradual improvement in asset utilization efficiency, although it remains below the peak levels observed in 2020 and 2021.

Overall, the analysis indicates that Pursuit Attractions and Hospitality, Inc. experienced a decline in asset efficiency around 2022, followed by a progressive recovery in subsequent years. This pattern may reflect operational adjustments, strategic investments, or market conditions influencing asset utilization effectiveness during this period.