Penguin Solutions, Inc. (PENG)
Payables turnover
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 827,884 | 1,026,080 | 1,004,830 | 817,556 | 905,981 |
| Payables | US$ in thousands | 181,637 | 134,980 | 293,165 | 429,640 | 224,660 |
| Payables turnover | 4.56 | 7.60 | 3.43 | 1.90 | 4.03 |
August 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $827,884K ÷ $181,637K
= 4.56
The payables turnover ratio for Penguin Solutions, Inc. demonstrates notable fluctuations over the analyzed period from August 31, 2020, to August 31, 2024. Specifically, the ratio declined significantly from 4.03 in 2020 to 1.90 in 2021, indicating that the company was settling its payables less frequently during that year, possibly reflecting extended payment terms or slower payment practices.
Subsequently, the ratio increased sharply to 3.43 in 2022, implying an improvement in the company’s speed of settling its accounts payable, though it still remained below the 2020 level. This trend continued with a substantial rise to 7.60 in 2023, signifying a period of rapid payment activity where the company was paying its suppliers more frequently within the year.
By 2024, the ratio moderated slightly to 4.56, indicating a decrease in the frequency of payments compared to the previous year but still reflecting a higher payables turnover than the 2021 and 2022 levels. Overall, these changes suggest that Penguin Solutions experienced a period of reduced payment activity following 2020, followed by a phase of intensified payment frequency, particularly in 2023, before stabilizing at a somewhat lower but still elevated level in 2024.
Peer comparison
Aug 31, 2024