Pursuit Attractions and Hospitality, Inc. (PRSU)

Interest coverage

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands -49,814 -31,635 112,656 106,194 88,112 91,895 91,439 80,931 82,212 66,425 48,593 22,046 -48,690 -63,455 -99,648 -155,577 -283,106 -342,653 -298,630 -226,837
Interest expense (ttm) US$ in thousands 34,568 44,949 34,170 35,218 47,574 47,978 48,082 45,858 41,263 29,014 26,285 25,551 23,355 28,473 23,753 19,685 19,306 18,206 19,241 17,531
Interest coverage -1.44 -0.70 3.30 3.02 1.85 1.92 1.90 1.76 1.99 2.29 1.85 0.86 -2.08 -2.23 -4.20 -7.90 -14.66 -18.82 -15.52 -12.94

March 31, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-49,814K ÷ $34,568K
= -1.44

The interest coverage ratio of Pursuit Attractions and Hospitality, Inc. demonstrates a pattern of significant volatility over the analyzed period. At the outset, in June 2020, the ratio was notably negative at -12.94, indicating severe difficulty in covering interest expenses from earnings. Similarly, throughout 2020 and early 2021, the ratios remained negative and worsened, reaching as low as -18.82 in December 2020, reflecting persistent earnings deficits and heightened financial stress.

During 2021, the ratios showed gradual improvement, with values moving closer to zero—reaching -2.23 by the end of December 2021—yet still indicating insufficient earnings to comfortably cover interest payments. This trend continued into 2022, with the ratio turning positive in June (0.86) and increasing to 2.29 by the end of that year, signifying improved operating performance and the ability to meet interest obligations. The ratios remained relatively stable and positive through 2023, with values fluctuating between approximately 1.76 and 1.99, illustrating a period of stabilized, though modest, interest coverage.

In the first half of 2024, the ratios continued to be positive, peaking at 3.30 in September, suggesting robust earnings relative to interest expenses during this interval. However, the subsequent quarters reflect a notable deterioration: the ratio turns negative again in December 2024 (-0.70) and further declines in March 2025 to -1.44, indicating renewed challenges in generating sufficient earnings to cover interest obligations.

Overall, the company's interest coverage ratio exhibits a trajectory moving from substantial negative values in 2020 to positive figures in 2022 and parts of 2023, before experiencing a decline in late 2024 and early 2025. This pattern suggests periods of financial recovery interspersed with setbacks, emphasizing variability in profitability and potential issues related to earnings stability over the analyzed timeframe.