Pursuit Attractions and Hospitality, Inc. (PRSU)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	366,488	350,285	299,327	507,340	415,435
Receivables	US$ in thousands	18,083	8,882	122,695	93,867	18,174
Receivables turnover		20.27	39.44	2.44	5.40	22.86

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $366,488K ÷ $18,083K
= 20.27

The receivables turnover ratios for Pursuit Attractions and Hospitality, Inc. over the provided fiscal periods indicate significant fluctuations, reflecting changes in the company's efficiency in collecting accounts receivable. At the end of December 31, 2020, the ratio was 22.86, suggesting a relatively high frequency of receivables collection within the year. This high turnover implies that the company was efficient in converting receivables into cash during that period.

In the subsequent year, December 31, 2021, the ratio sharply declined to 5.40, signifying a substantial slowdown in collection efficiency. This decrease may point to lenient credit policies, increased collection difficulties, or a shift in the company's customer base or credit management practices.

The downward trend persisted in December 31, 2022, with the ratio diminishing further to 2.44. Such a low ratio indicates that receivables are being collected very slowly, which could impact cash flow and liquidity positions adversely. It may also reflect potential issues in credit policies or collection processes, or a strategic extension of credit terms to customers.

A notable turnaround occurred by December 31, 2023, when the receivables turnover ratio surged to 39.44, markedly higher than previous figures. This substantial increase implies a significant improvement in collection efficiency, possibly due to stricter credit policies, enhanced collection efforts, or a change in customer payment behaviors. It may also suggest that the company experienced a period of improved cash flow management.

In the most recent period, December 31, 2024, the ratio decreased to 20.27 but remained much higher than figures recorded in 2021 and 2022. Although lower than the peak in 2023, the ratio still indicates comparatively efficient receivables collection, supporting the inference that the company has maintained a generally effective receivables management approach in recent periods.

Overall, these fluctuations in receivables turnover ratios reflect turbulent changes in Pursuit Attractions and Hospitality, Inc.'s collection practices over the years. The sharp decline from 2020 to 2022 suggests periods of decreased collection efficiency, followed by a remarkable recovery in 2023. Maintaining or improving upon the higher ratios will be essential for optimizing cash flow and ensuring financial stability in future periods.