Pursuit Attractions and Hospitality, Inc. (PRSU)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	368,544	16,017	23,220	-92,655	-374,094
Total assets	US$ in thousands	845,008	1,137,320	1,090,350	1,037,630	853,224
ROA		43.61%	1.41%	2.13%	-8.93%	-43.84%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $368,544K ÷ $845,008K
= 43.61%

The analysis of Pursuit Attractions and Hospitality, Inc.'s return on assets (ROA) over the specified period reveals notable fluctuations and trends. At the end of 2020, the company experienced a significantly negative ROA of -43.84%, indicating substantial challenges in generating profit relative to its asset base during that year. This negative figure suggests that operational or financial difficulties adversely impacted the company's profitability, resulting in losses that consumed its assets.

Moving to 2021, the ROA improved markedly to -8.93%. Although still negative, this represents a substantial reduction in loss compared to the prior year. Such an improvement could reflect operational efforts to control costs, strategic shifts, or other corrective measures that mitigated losses, thus enhancing the efficiency of asset utilization even though profitability had not yet turned positive.

By the end of 2022, the ROA transitioned into positive territory at 2.13%. This indicates that the company had achieved a modest level of profitability, utilizing its assets more efficiently to generate earnings. This improvement suggests a meaningful turnaround in operational performance, likely driven by revenue growth, cost management, or a combination of both.

At the close of 2023, the ROA remained positive but slightly decreased to 1.41%. Although still demonstrating profitability, this decline implies that the rate of asset efficiency gains plateaued or that additional factors, such as increased expenses or lower returns, affected overall performance.

Remarkably, by the end of 2024, the ROA surged to 43.61%, representing an extraordinary leap in asset profitability. Such a significant increase could be attributable to several factors, including substantial operational improvements, asset restructuring, one-time gains, or exceptional revenue growth relative to asset base. This level of ROA typically indicates highly efficient utilization of assets and strong profitability relative to the company's asset holdings.

In summary, the company's ROA trend demonstrates a transition from severe losses in 2020 to increasingly positive and eventually highly profitable levels by 2024. The trajectory suggests a successful turnaround in operations and asset management, with the most remarkable improvement occurring between 2023 and 2024.