Pursuit Attractions and Hospitality, Inc. (PRSU)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -31,253 | 33,241 | 4,570 | -66,757 | -342,972 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 525,825 | 43,433 | 14,530 | 6,282 | 95,955 |
| Return on total capital | -5.94% | 76.53% | 31.45% | -1,062.67% | -357.43% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-31,253K ÷ ($—K + $525,825K)
= -5.94%
The analysis of Pursuit Attractions and Hospitality, Inc.'s return on total capital over the period from December 31, 2020, to December 31, 2024, reveals significant fluctuations indicative of evolving financial performance and capital utilization.
In 2020, the company experienced a markedly negative return on total capital at -357.43%, suggesting substantial losses relative to its total capital base. This extreme negative figure may reflect adverse operating conditions, high leverage, or extraordinary losses impacting the company's profitability.
The subsequent year, 2021, saw an even more pronounced deterioration, with the return plummeting to -1,062.67%. This indicates a worsening financial position, potentially driven by increased losses, unfavorable market conditions, or elevated financial leverage that amplified the negative earnings relative to total capital.
A notable turnaround occurred in 2022, where the return on total capital transitioned to a positive figure of 31.45%. This shift signifies that the company began generating profits in relation to its total capital, highlighting improved operational efficiency or strategic adjustments leading to sustainable earnings.
In 2023, the positive trend continued, with the return increasing to 76.53%, reflecting further enhancement in profitability and capital utilization efficiency. This indicates a period of substantial financial recovery or successful operational initiatives.
However, in 2024, the return declined sharply to -5.94%, reverting to a negative territory. This decline suggests a setback in profitability or increased costs that adversely affected the company's capacity to generate returns on its total capital, potentially due to internal challenges or external market conditions.
Overall, the company's return on total capital exhibits a volatile pattern: from extreme negative figures in 2020 and 2021, through a meaningful recovery in 2022 and 2023, and a subsequent decline in 2024. This trajectory underscores significant variability in profitability and financial performance, with recent data indicating a potential destabilization after a period of improvement.
Peer comparison
Dec 31, 2024