Penguin Solutions, Inc. (PENG)

The Days of Inventory on Hand (DOH) for Penguin Solutions, Inc. over the specified period demonstrates notable fluctuations, reflecting shifts in inventory management efficiency and operational dynamics. As of August 31, 2020, the DOH was approximately 65.67 days, indicating a moderate level of inventory held relative to sales. A significant increase was observed by August 31, 2021, with the DOH rising to approximately 162.33 days, which suggests a substantial buildup of inventory or slower inventory turnover during that period.

Following this peak, a decline occurred by August 31, 2022, bringing the DOH down to approximately 95.81 days. This reduction may suggest an improvement in inventory turnover, potentially driven by better inventory management practices or changes in sales velocity. The trend continued favorably through August 31, 2023, with the DOH decreasing further to approximately 62.24 days, nearing levels observed in 2020, and indicating improved efficiency in inventory utilization.

By August 31, 2024, the DOH marginally increased again to approximately 66.67 days, which remains close to the initial pre-2021 figures. Overall, the data indicates periods of inventory accumulation followed by subsequent reductions, highlighting a cycle of inventory buildup perhaps linked to strategic stockpiling or market conditions, and later periods of optimized inventory management leading to faster inventory turnover. These movements reflect the company's efforts to balance inventory levels with sales demands to maintain operational fluidity.

Peer comparison

Aug 31, 2024