Pursuit Attractions and Hospitality, Inc. (PRSU)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		20.27	39.44	2.44	5.40	22.86
DSO	days	18.01	9.26	149.61	67.53	15.97

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 20.27
= 18.01

The analysis of Pursuit Attractions and Hospitality, Inc.'s days of sales outstanding (DSO) reveals notable fluctuations over the period from 2020 to 2024. At the end of 2020, the company's DSO was approximately 15.97 days, indicating a relatively efficient collection cycle during that year. However, by the end of 2021, the DSO experienced a significant increase to 67.53 days, suggesting a deterioration in accounts receivable collection efficiency and potentially extending the period it takes to convert sales into cash.

This upward trend continued sharply in 2022, with the DSO escalating to approximately 149.61 days, which is indicative of substantial delays in collection processes or possibly changes in credit policies, customer base, or economic conditions impacting receivables collection. Such a high DSO could also reflect management challenges or credit risk issues, warranting further investigation.

Interestingly, in the subsequent year, 2023, the DSO decreased markedly to 9.26 days, which is significantly lower than levels observed in prior years. This suggests a dramatic improvement in receivables collection efficiency, possibly due to internal process improvements, stricter credit controls, or a shift in customer payment behavior.

By the end of 2024, the DSO rose again to approximately 18.01 days, indicating a mild increase but remaining relatively close to the initial figures reported in 2020. Although higher than the 2023 figure, this level remains substantially lower than the peak observed in 2022, implying a stabilization of the collection cycle.

Overall, the company's DSO trend illustrates considerable volatility, with a period of significant collection delays in 2021 and 2022 followed by a rapid improvement in 2023. The fluctuating DSO figures reflect changes in credit management practices, customer payment patterns, or economic influences, emphasizing the importance of ongoing receivables monitoring for assessing liquidity and operational efficiency.