Penguin Solutions, Inc. (PENG)

Inventory turnover

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
Cost of revenue (ttm) US$ in thousands 957,314 939,820 881,913 830,020 681,489 713,753 788,235 876,537 1,134,860 1,238,999 1,298,088 1,366,132 1,382,193 1,387,357 1,301,452 1,192,762 1,083,540 957,353 927,336 905,981
Inventory US$ in thousands 184,348 199,737 246,952 151,213 177,299 172,763 208,441 174,977 226,051 294,367 416,082 263,768 365,258 334,148 317,851 363,601 288,962 189,327 147,203 162,991
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

May 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $957,314K ÷ $184,348K
= 5.19

The inventory turnover ratio of Penguin Solutions, Inc. exhibits variability across the reporting periods from August 2020 through May 2025. Initially, the ratio was 5.56 in August 2020, increasing to a peak of approximately 6.30 in November 2020, reflecting efficient inventory management and brisk sales activity during that period. However, subsequent periods show fluctuations, with the ratio decreasing to a low of 3.28 in August 2021, indicating potential overstocking, slower sales, or inventory accumulation during that period.

The ratio experiences a modest recovery afterward, rising to 4.15 in February 2022, and then fluctuating within a range of approximately 3.78 to 5.49 in the subsequent quarters. Notably, the ratio peaks again at 5.49 in August 2024 before declining to 3.57 in November 2024 and rebounding to 4.71 in February 2025, then reaching approximately 5.19 in May 2025.

This pattern suggests periods of both improved inventory management and slower turnover phases. The observed fluctuations may be attributable to seasonal sales variations, changes in inventory purchasing strategies, or shifts in market demand. Overall, the company’s inventory turnover ratio demonstrates cyclical movements with periods of both higher efficiency and slower inventory movement, reflecting a dynamic inventory management environment.