Penguin Solutions, Inc. (PENG)

Days of inventory on hand (DOH)

		May 31, 2025	Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020
Inventory turnover		5.19	4.71	3.57	5.49	3.84	4.13	3.78	5.01	5.02	4.21	3.12	5.18	3.78	4.15	4.09	3.28	3.75	5.06	6.30	5.56
DOH	days	70.29	77.57	102.21	66.50	94.96	88.35	96.52	72.86	72.70	86.72	117.00	70.47	96.45	87.91	89.14	111.27	97.34	72.18	57.94	65.67

May 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.19
= 70.29

The analysis of Penguin Solutions, Inc.’s days of inventory on hand (DOH) over the period from August 2020 to May 2025 reveals significant fluctuations, reflecting varying inventory management efficiencies and operational dynamics.

Initially, the DOH fluctuated between approximately 57.94 days (November 2020) and 97.34 days (May 2021), indicating periods of both efficient inventory turnover and relatively higher inventory levels. Notably, the highest recorded DOH was 117.00 days in November 2022, suggesting a potential buildup of inventory or slower sales during that period.

A downward trend followed, with the DOH decreasing to around 66.50 days by August 2024, indicative of improved inventory management and possibly increased sales velocity. However, this improvement was not consistent; the DOH increased again to 102.21 days in November 2024 before decreasing once more to 70.29 days by May 2025.

Overall, the data reflects a pattern of cyclical inventory levels, with periods of buildup followed by reductions, pointing to ongoing adjustments in inventory strategies. The volatility suggests shifting market conditions, changes in sales, or inventory policies, emphasizing the importance of continuous monitoring to optimize inventory turnover rates.