Pursuit Attractions and Hospitality, Inc. (PRSU)

Financial leverage ratio

		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
Total assets	US$ in thousands	832,564	845,008	1,195,830	1,223,400	1,180,300	1,137,320	1,200,540	1,152,770	1,104,280	1,090,350	1,144,630	1,141,160	1,059,550	1,037,630	1,057,560	944,476	904,655	853,224	869,092	998,464
Total stockholders’ equity	US$ in thousands	497,854	525,825	96,765	41,207	12,247	43,433	51,750	16,487	-4,248	14,530	7,759	-7,591	-18,169	6,282	25,608	18,751	56,502	95,955	134,848	153,772
Financial leverage ratio		1.67	1.61	12.36	29.69	96.37	26.19	23.20	69.92	—	75.04	147.52	—	—	165.18	41.30	50.37	16.01	8.89	6.44	6.49

March 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $832,564K ÷ $497,854K
= 1.67

The financial leverage ratio of Pursuit Attractions and Hospitality, Inc. demonstrates significant fluctuations over the observed period, reflecting varying levels of financial risk stemming from the company’s use of debt relative to equity.

In the early stages of the displayed data, the ratio was relatively modest, with values of 6.49 on June 30, 2020, and slightly declining to 6.44 by September 30, 2020. These levels suggest a conservative leverage stance at that time. However, a marked increase can be observed moving into the end of 2020 and into early 2021, with the ratio jumping to 8.89 by December 31, 2020, and then surging dramatically to 16.01 on March 31, 2021. This indicates a rising reliance on debt, heightening financial risk.

The leverage ratio escalated sharply in the subsequent quarters, reaching 50.37 on June 30, 2021, and then soaring to an extraordinary 165.18 at the end of 2021. Such an extreme increase suggests substantial leveraging, potentially indicative of aggressive debt financing or financial distress, and warrants close examination of the company’s capital structure and related risks.

Throughout 2022, the ratio displayed volatility, with a notable decline from 147.52 on September 30, 2022, to 75.04 by December 31, 2022. The ratio was unavailable for the first two quarters of 2023 but re-emerged at 69.92 on June 30, 2023, and then decreased further to 23.20 by September 30, 2023. By December 31, 2023, the ratio returned to a moderate 26.19. This downward trend indicates a reduction in leverage, possibly reflecting deleveraging strategies, repayment of debt, or changes in capital structure.

However, the pattern shifted again in the first quarter of 2024, where the ratio rose sharply to 96.37, and then declined in subsequent quarters to 29.69 on June 30, 2024, and further to 12.36 on September 30, 2024. By December 31, 2024, the leverage ratio decreased substantially to 1.61, suggesting a significant reduction in financial leverage, potentially due to debt repayment or increase in equity, thus lowering financial risk.

In the most recent data for March 31, 2025, the ratio slightly increased again to 1.67, indicating that the company maintains a relatively low level of leverage at this point, which generally corresponds to a lower financial risk profile.

Overall, the financial leverage ratio of Pursuit Attractions and Hospitality, Inc. has experienced periods of extreme leverage followed by significant de-leveraging phases. The substantial peaks, notably in 2021, imply periods of heightened risk, while the subsequent declines suggest efforts to reduce debt obligations and stabilize the capital structure. The recent trend indicates a move toward more conservative leverage levels, aligning with prudent financial management practices and a potentially lower risk profile for the company.