Penguin Solutions, Inc. (PENG)

Days of sales outstanding (DSO)

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
Receivables turnover 4.59 3.99 4.49 4.65 4.83 6.29 6.86 5.87 6.41 7.32 5.68 5.12 5.17 4.73 4.88 4.79 4.61 5.52 5.19 5.20
DSO days 79.55 91.47 81.29 78.48 75.59 58.07 53.20 62.14 56.91 49.84 64.21 71.22 70.55 77.20 74.79 76.20 79.18 66.16 70.29 70.22

May 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.59
= 79.55

The analysis of Penguin Solutions, Inc.'s Days of Sales Outstanding (DSO) over the period from August 2020 to May 2025 indicates notable fluctuations and trends. Initially, the DSO remained relatively stable around the low 70s days, with values of 70.22 days and 70.29 days recorded in August and November 2020, respectively. During early 2021, a slight decline was observed in February 2021 to 66.16 days, suggesting improved receivables collection efficiency.

However, the DSO experienced an upward trend throughout 2021, peaking at 79.18 days in May 2021 and reaching 77.20 days in February 2022. This increase may reflect extended credit terms or delays in receivables collection during this period. A subsequent decline to approximately 70.55 days in May 2022 and further stabilization in the low 70s range till August 2022 indicates some improvement in receivable turnover.

A significant decrease occurred at the end of 2022, with DSO dropping to 64.21 days in November 2022 and substantially decreasing further to 49.84 days by February 2023, suggesting enhanced collections or shorter credit terms during this period. Nonetheless, an upward trend resumed thereafter, with DSO rising again to 56.91 days in May 2023, and reaching 62.14 days in August 2023.

From late 2023 onwards, there has been a steady increase in DSO, culminating at 81.29 days in November 2024 and further increasing to 91.47 days by February 2025. This upward trajectory indicates a deterioration in receivables collection efficiency or possible extension of credit terms, resulting in longer periods to collect revenues.

Overall, the DSO pattern displays periods of both reduction and elongation in receivables collection cycles, with the recent trend emphasizing longer collection periods exceeding three months. This pattern warrants further investigation into credit policies, customer payment behaviors, and potential impacts on cash flow management.