Pursuit Attractions and Hospitality, Inc. (PRSU)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	845,008	1,137,320	1,090,350	1,037,630	853,224
Total stockholders’ equity	US$ in thousands	525,825	43,433	14,530	6,282	95,955
Financial leverage ratio		1.61	26.19	75.04	165.18	8.89

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $845,008K ÷ $525,825K
= 1.61

The financial leverage ratio of Pursuit Attractions and Hospitality, Inc. experienced significant fluctuations over the five-year period from December 31, 2020, to December 31, 2024. At the end of 2020, the ratio was notably high at 8.89, indicating the company employed substantial financial leverage relative to its equity, which suggests a reliance on debt financing to fund its assets during that period.

There was a marked increase in the leverage ratio in 2021, reaching a peak of 165.18. This extraordinary rise signifies a substantial escalation in the company's use of debt, potentially reflecting aggressive expansion strategies or capital-intensive initiatives funded through leverage. Such a high ratio may also imply increased financial risk due to the greater burden of debt servicing obligations.

Following this peak, the ratio decreased markedly in 2022 to 75.04, indicating some reduction in leverage but still maintaining a high degree of debt relative to equity. The downward trend continued into 2023, with the ratio declining further to 26.19, which suggests a significant deleveraging process, possibly through debt repayment or equity infusion, thereby improving the company's leverage position.

By 2024, the financial leverage ratio reached a substantially lower level at 1.61. This indicates a near convergence of debt and equity in the company's capital structure, reflecting a markedly conservative leverage stance compared to previous years. Such a dramatic reduction in leverage could be indicative of strategic restructuring, a focus on reducing financial risk, or shifts toward more equity-based funding.

Overall, the company's financial leverage ratio charts a trajectory from a highly leveraged position in 2021 to a much more conservative capital structure by the end of 2024. This trend highlights a transition from aggressive debt usage toward prudent financial management, which could positively influence financial stability and reduce insolvency risk.