Pursuit Attractions and Hospitality, Inc. (PRSU)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	325,929	296,845	275,229	554,272	531,610
Inventory	US$ in thousands	9,983	9,472	10,785	8,581	8,727
Inventory turnover		32.65	31.34	25.52	64.59	60.92

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $325,929K ÷ $9,983K
= 32.65

The inventory turnover ratios for Pursuit Attractions and Hospitality, Inc. over the period from December 31, 2020, to December 31, 2024, demonstrate notable fluctuations that reflect changes in inventory management efficiency.

In 2020, the inventory turnover was 60.92, indicating a highly efficient rotation of inventory whereby the company sold and replenished its inventory approximately 61 times throughout the year. This high turnover suggests effective inventory management and strong sales relative to inventory levels during that period.

The ratio increased slightly to 64.59 in 2021, further emphasizing improved inventory utilization, with inventory being turned over approximately 65 times annually. Such an increase can be associated with operational efficiencies or a strategic alignment with faster-moving inventory items.

However, a significant decline occurred in 2022, with the ratio dropping sharply to 25.52. This substantial reduction signifies a decrease in inventory turnover — implying that inventory was sold and replaced roughly 26 times during the year. The decline could be indicative of excess inventory buildup, lower sales velocity, or changes in product demand, potentially signaling operational inefficiencies or market challenges during that period.

In 2023, the ratio showed a modest improvement to 31.34, suggesting a partial recovery in inventory management efficiency. The company appears to have improved its inventory turnover rate, though it continued to be substantially below the 2020–2021 levels.

By 2024, the inventory turnover increased further to 32.65, demonstrating ongoing efforts to enhance inventory management and sales performance. While this is an improvement over the previous year, the ratio remains significantly lower than the earlier high points, indicating that inventory turn has yet to return to the peak efficiencies seen prior to 2022.

Overall, the trend reveals that Pursuit Attractions and Hospitality, Inc. experienced a peak in inventory efficiency around 2020–2021, followed by a sharp decline, with a gradual recovery underway in subsequent years. This pattern underscores the importance of examining underlying causes—including market conditions, product mix, or operational adjustments—that may have influenced inventory management and turnover rates during this period.