Pursuit Attractions and Hospitality, Inc. (PRSU)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	49,702	27,435	59,719	61,600	39,545
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	18,083	8,882	122,695	93,867	18,174
Total current liabilities	US$ in thousands	76,394	232,519	211,117	175,126	97,733
Quick ratio		0.89	0.16	0.86	0.89	0.59

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($49,702K + $—K + $18,083K) ÷ $76,394K
= 0.89

The quick ratio of Pursuit Attractions and Hospitality, Inc. demonstrates notable fluctuations over the analyzed period from December 31, 2020, to December 31, 2024. At the end of 2020, the company's quick ratio stood at 0.59, indicating that it possessed less than one dollar in liquid assets (excluding inventories and other less liquid current assets) for every dollar of current liabilities. This ratio suggests a relatively limited liquidity position at that time, with the company possibly relying on additional sources of funds to meet short-term obligations.

By the end of 2021, the quick ratio increased significantly to 0.89, approaching closer to the unity benchmark and reflecting an improved liquidity stance. This upward movement indicates that the company either increased its liquid assets, decreased its current liabilities, or a combination of both, thereby enhancing its ability to cover immediate liabilities without relying on inventory sales.

In 2022, the quick ratio remained relatively stable at 0.86, suggesting that the company's liquidity profile maintained a similar level of short-term liquidity as in the previous year. Although there was a slight decline from 2021 to 2022, the ratio stayed close to the 0.89 level, indicating consistency in management's short-term financial management.

However, a significant deterioration is observed at the end of 2023, where the quick ratio sharply declined to 0.16. This substantial decrease suggests a weakening liquidity position, with the company's liquid assets becoming insufficient to cover its current liabilities by a wide margin. Such a low ratio could indicate potential liquidity risk, possibly stemming from reduced liquid assets, increased current liabilities, or both.

In 2024, the quick ratio rebounded to 0.89, returning to levels observed in 2021. This recovery indicates a substantial improvement in the company's short-term liquidity, restoring its ability to meet current obligations with liquid assets nearly at parity. The fluctuation highlights periods of financial strain and recovery within the company, emphasizing the importance of ongoing liquidity management.

Overall, the pattern of the quick ratio over the analyzed period reflects periods of growth in liquidity, a critical decline in 2023, and subsequent recovery in 2024. The data underscores the company's susceptibility to liquidity challenges and the importance of maintaining adequate liquid assets to ensure financial stability.