Penguin Solutions, Inc. (PENG)

Receivables 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
Revenue (ttm)	US$ in thousands	1,342,020	1,318,349	1,237,651	1,170,796	1,022,916	1,066,754	1,170,310	1,287,860	1,562,289	1,680,411	1,741,205	1,819,352	1,849,364	1,824,552	1,679,390	1,501,143	1,330,464	1,174,023	1,142,056	1,122,377
Receivables	US$ in thousands	292,504	330,384	275,629	251,743	211,842	169,718	170,590	219,247	243,571	229,474	306,323	355,002	357,457	385,925	344,107	313,393	288,617	212,807	219,932	215,918
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

May 31, 2025 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,342,020K ÷ $292,504K
= 4.59

The receivables turnover ratio for Penguin Solutions, Inc. exhibits notable fluctuations over the analyzed period from August 2020 to May 2025. Initially, the ratio fluctuated around the mid-5s, with values of 5.20 in August 2020 and 5.19 in November 2020, indicating a relatively consistent efficiency in collecting receivables during this period. An increase to 5.52 in February 2021 suggests an improvement in collection efficiency. However, this was followed by a decline to 4.61 in May 2021, and subsequent minor fluctuations, with ratios generally oscillating between approximately 4.6 and 5.2 through 2021 and early 2022.

A significant upward movement occurred in February 2023, with the ratio reaching 7.32, which indicates a marked increase in collection efficiency during that period. This peak was followed by a slight decrease to 6.41 in May 2023, and further variations through late 2023 and early 2024, with the ratio hovering around the low to mid-6s.

From late 2024 onward, there appears to be a declining trend, with ratios decreasing to 4.83 in May 2024 and further down to approximately 3.99 by February 2025. This downward trend suggests a deterioration in the company's receivables collection efficiency over this latter period.

Overall, the receivables turnover ratio displays periods of improvement, notably in early 2023, and periods of decline, particularly in the most recent months leading into 2025. The fluctuations may reflect changes in credit policies, customer payment behaviors, or sales composition, impacting how quickly receivables are converted into cash. The highest recorded ratio within this timeframe (7.32 in February 2023) indicates periods where the company was able to collect receivables more rapidly, whereas the lowest ratio (3.99 in February 2025) suggests a slowdown in collection efficiency relative to earlier periods.