Pursuit Attractions and Hospitality, Inc. (PRSU)

Cash conversion cycle

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020
Days of inventory on hand (DOH)	days	88.97	11.18	3.26	4.66	3.33	3.06	3.53	5.10	3.78	3.70	4.11	6.24	4.88	5.65	7.38	13.50	10.49	6.02	7.68	6.94
Days of sales outstanding (DSO)	days	30.01	18.01	45.78	52.11	44.27	2.62	41.32	44.47	40.43	39.73	51.79	64.26	53.95	67.53	79.76	66.99	47.99	16.06	10.98	13.43
Number of days of payables	days	163.71	25.19	34.94	34.08	31.91	4.76	26.86	34.14	30.26	25.07	36.42	42.19	39.80	45.87	50.23	37.55	25.67	14.51	10.40	11.61
Cash conversion cycle	days	-44.73	4.00	14.11	22.69	15.69	0.92	17.98	15.43	13.96	18.36	19.47	28.31	19.03	27.31	36.91	42.95	32.82	7.57	8.26	8.77

March 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 88.97 + 30.01 – 163.71
= -44.73

The analysis of the cash conversion cycle (CCC) of Pursuit Attractions and Hospitality, Inc., reveals variable performance over the period from mid-2020 through early 2025. Initially, the CCC maintained relatively low levels in 2020, averaging approximately 8.77 days at June 30, decreasing slightly to 8.26 days by September 30, and further to 7.57 days at year-end December 31, 2020. This suggests efficient management of inventory and receivables, coupled with favorable payables within this period.

Throughout 2021, the CCC displayed increased volatility, peaking at 42.95 days on June 30, before declining to 27.31 days at the year's end. This fluctuation indicates periods of extended cash tied up in operations, potentially due to seasonal variations, operational adjustments, or changes in credit policies. The pattern suggests that the company faced challenges in maintaining operational efficiency during this interval but showed signs of improvement towards the end of 2021.

Entering 2022, the CCC demonstrated a decreasing trend, dropping to 19.03 days by March 31, and then fluctuating slightly within the range of approximately 18 to 28 days throughout the year. The reduction indicates an improvement in the company's operational cash cycle, potentially reflecting better inventory turnover, receivables management, or credit terms with suppliers.

In 2023, the CCC continued to decline, reaching a low of approximately 0.92 days at December 31, indicative of highly efficient operational cycles where the company quickly converts its investments into cash, with minimal holding periods. However, in the subsequent quarters of 2024, the CCC experienced variability, rising to 22.69 days in June 2024 before decreasing again to 4.00 days at December 2024. This pattern signifies ongoing management adjustments or seasonal effects influencing the company's liquidity and operational efficiency.

Notably, the data point for March 31, 2025, exhibits a negative CCC of approximately -44.73 days, which implies that the company's receivables are collected significantly faster than it pays its suppliers, or that it operates with substantial prepayments or extended payables. A negative CCC indicates an exceptionally efficient cash cycle, potentially offering the company strategic advantages in liquidity management; however, it may also suggest atypical operational practices or temporary accounting phenomena.

Overall, the company's cash conversion cycle has shown a trend towards improvement over the analyzed period, culminating in periods of highly efficient operational cash management in late 2024 and early 2025. The fluctuations and eventual negative cycle highlight dynamic operational strategies, adjustments in working capital management, and possibly seasonal business patterns influences. Continuous monitoring is recommended to assess the sustainability and underlying factors of such formidably efficient cycles.