Pursuit Attractions and Hospitality, Inc. (PRSU)

Payables 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
Payables	US$ in thousands	22,494	14,734	73,020	69,657	21,037
Payables turnover		14.49	20.15	3.77	7.96	25.27

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $325,929K ÷ $22,494K
= 14.49

The payables turnover ratio for Pursuit Attractions and Hospitality, Inc. demonstrates significant fluctuations over the observed period from December 31, 2020, to December 31, 2024. In 2020, the ratio was notably high at 25.27, indicating the company was rapidly settling its accounts payable obligations, which often suggests prompt payments to suppliers or favorable credit terms.

However, the ratio experienced a sharp decline to 7.96 in 2021 and further decreased to 3.77 in 2022. This downward trend signifies that the company was taking longer to pay its suppliers during this period, possibly due to liquidity constraints, extended credit periods negotiated with suppliers, or strategic delays in payments to better manage cash flows.

In 2023, the ratio increased markedly to 20.15, indicating a substantial acceleration in paying off liabilities relative to its purchases or turnover of accounts payable. This could reflect improved liquidity positions, renegotiated payment terms favoring quicker settlement, or operational adjustments to reduce outstanding payables.

By 2024, the ratio slightly declined to 14.49 but remained significantly higher than the levels observed in 2021 and 2022. Although lower than the 2023 peak, this figure still denotes a relatively faster payment cycle compared to the recent past, suggesting ongoing improvements or shifts in payables management.

Overall, the fluctuating payables turnover ratio indicates periods of cautious liquidity management interspersed with more aggressive repayment strategies. The initial high ratio in 2020 may have reflected prompt payments despite potentially challenging conditions, while the subsequent decrease aligns with extended payables management. The rebound in 2023 suggests a strategic or operational shift toward faster settlements, with the ratio stabilizing at a moderately elevated level through 2024.