Pursuit Attractions and Hospitality, Inc. (PRSU)

Cash conversion cycle

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	11.18	11.65	14.30	5.65	5.99
Days of sales outstanding (DSO)	days	18.01	9.26	149.61	67.53	15.97
Number of days of payables	days	25.19	18.12	96.84	45.87	14.44
Cash conversion cycle	days	4.00	2.78	67.08	27.31	7.52

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 11.18 + 18.01 – 25.19
= 4.00

The cash conversion cycle (CCC) of Pursuit Attractions and Hospitality, Inc. has exhibited significant fluctuations over the analyzed period from December 31, 2020, to December 31, 2024. At the end of 2020, the CCC was relatively low at 7.52 days, indicating a quick turnaround in converting investments in inventory and receivables into cash. This efficiency markedly increased in 2021, with the cycle lengthening to 27.31 days, suggesting delays or extended periods in receivables collection, inventory turnover, or both.

The trend continued into 2022, where the CCC expanded substantially to 67.08 days. Such an increase may reflect operational challenges, slower customer payments, or prolonged inventory holding periods, thereby weakening short-term liquidity or working capital management.

A notable improvement occurred in 2023, with the CCC sharply reducing to 2.78 days. This contraction implies enhanced operational efficiencies, quicker receivables collection, or optimized inventory management, which collectively shortened the time needed to convert investments into cash. Interestingly, the CCC increased slightly again in 2024 to 4.00 days but remained considerably lower than prior peak levels, maintaining a relatively efficient working capital cycle.

Overall, the data demonstrates considerable volatility in the company’s cash conversion cycle. The periods of elongation suggest potential operational or receivable management issues during 2022, while the subsequent reductions reflect strategic improvements aimed at accelerating cash flows. The overall trend since 2022 indicates efforts to optimize working capital and enhance cash flow efficiency, ultimately leading to a more favorable and shorter cash conversion cycle in recent years.