Penguin Solutions, Inc. (PENG)

Receivables turnover

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Revenue	US$ in thousands	1,170,800	1,441,250	1,395,880	1,055,530	1,122,380
Receivables	US$ in thousands	251,743	219,247	355,002	313,393	215,918
Receivables turnover		4.65	6.57	3.93	3.37	5.20

August 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,170,800K ÷ $251,743K
= 4.65

The receivables turnover for Penguin Solutions, Inc. demonstrates notable fluctuations over the analyzed period from August 31, 2020, to August 31, 2024. In the fiscal year ending August 31, 2020, the ratio was 5.20, indicating the company collected its average accounts receivable approximately 5.2 times during the year. This ratio declined significantly in the subsequent year, reaching 3.37 in 2021, which suggests a slowdown in receivable collections or a possible extension of credit terms offered to customers.

In 2022, the receivables turnover increased slightly to 3.93, showing a modest improvement but still remaining below the 2020 level. The most remarkable change occurred in 2023, with the ratio rising sharply to 6.57, surpassing the 2020 figure and indicating a significant acceleration in receivable collections or tighter credit policies. This improvement suggests enhanced efficiency in managing receivables, possibly due to better credit management practices or a shift in sales to more prompt-paying customers.

However, in 2024, the ratio decreased to 4.65, reflecting a partial decline from the peak achieved in 2023 but still remaining above the levels observed in 2021 and 2022. This decrease may indicate a slight relaxation in collection efficiency or changes in credit policies, but overall, the receivables turnover in 2024 remains robust relative to the earlier years.

In summary, the receivables turnover ratio for Penguin Solutions, Inc. exhibits a pattern characterized by initial decline, followed by a significant recovery, and a subsequent minor decrease. These fluctuations highlight periods of varying collection efficiency, which could be attributable to strategic changes in credit policies, market conditions, or customer payment behaviors over the analyzed period.