Penguin Solutions, Inc. (PENG)

Payables 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
Payables US$ in thousands 272,090 238,247 244,271 182,037 191,799 148,008 181,791 134,980 170,884 167,769 325,435 293,165 384,251 380,088 373,460 429,640 354,210 261,443 235,557 224,660
Payables turnover 3.52 3.94 3.61 4.56 3.55 4.82 4.34 6.49 6.64 7.39 3.99 4.66 3.60 3.65 3.48 2.78 3.06 3.66 3.94 4.03

May 31, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $957,314K ÷ $272,090K
= 3.52

The payables turnover ratio for Penguin Solutions, Inc. has exhibited considerable fluctuation over the period from August 2020 to May 2025. Initially, the ratio was around 4.03 in August 2020, indicating that the company settled its accounts payable approximately four times during that year. Over subsequent quarters, this metric generally declined, reaching a low point of approximately 2.78 in August 2021—suggesting a slowdown in the rate of paying suppliers.

Between August 2021 and August 2022, the ratio demonstrated a gradual increase, culminating at about 4.66 in August 2022, which indicates a more aggressive repayment approach during that period. Notably, the ratio spiked sharply to 7.39 in February 2023, suggesting a significant acceleration in settling payables. This high level of turnover remained relatively elevated through May 2023 at 6.64, before experiencing a slight decline again in subsequent periods, with the ratio falling to around 4.34 by November 2023.

Looking into the most recent data, the payables turnover ratios toward mid-2024 hovered around the low 3s to mid-4s, with values such as 4.56 in August 2024 and 3.61 in November 2024, indicating a relatively moderate pace of paying suppliers. The ratio slightly increased again to about 3.94 in February 2025 and then decreased slightly to 3.52 by May 2025.

This pattern reveals periods of both contraction and expansion in the company's payment activity. The spike in early 2023 may indicate a strategic acceleration in settling liabilities or improved liquidity position, whereas the periods of lower ratios may reflect tighter cash management or extended credit terms negotiated with suppliers. Overall, the variability suggests that Penguin Solutions, Inc. has actively managed its accounts payable cycles, possibly aligning its payment practices with operational needs or shifts in liquidity position, rather than maintaining a consistent pattern over the analyzed period.