Penguin Solutions, Inc. (PENG)

Cash ratio

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
Cash and cash equivalents US$ in thousands 709,871 621,682 370,295 383,147 453,791 442,329 529,059 365,563 401,275 375,854 324,821 313,328 387,326 365,768 233,050 222,986 188,992 139,803 164,097 150,811
Short-term investments US$ in thousands 25,676 25,323 23,430 6,337 13,746 23,439 24,385 25,251 — — — — — — — — — — — —
Total current liabilities US$ in thousands 476,744 473,705 426,886 327,596 351,142 267,959 368,804 426,250 384,305 420,447 551,807 515,540 524,896 533,804 535,119 583,798 492,218 323,024 282,568 282,489
Cash ratio 1.54 1.37 0.92 1.19 1.33 1.74 1.50 0.92 1.04 0.89 0.59 0.61 0.74 0.69 0.44 0.38 0.38 0.43 0.58 0.53

May 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($709,871K + $25,676K) ÷ $476,744K
= 1.54

The cash ratio of Penguin Solutions, Inc. exhibits a general upward trend over the period spanning from August 2020 to May 2025, indicating an increasing emphasis on liquidity held in the form of cash or cash equivalents relative to current liabilities.

Initially, the cash ratio was 0.53 as of August 31, 2020, which steadily increased over the subsequent periods, reaching 0.58 by November 30, 2020. Throughout 2021, the ratio experienced minor fluctuations, decreasing to 0.43 by February 28, 2021, and further declining to 0.38 in May and August 2021. During this period, the ratio showed some volatility, with a slight increase to 0.44 in November 2021.

The trend reversed notably in late 2021 and into 2022, with significant growth in the cash ratio, peaking at 0.69 in February 2022 and escalating to 0.74 by May 2022. The ratio remained relatively high, at 0.61 in August 2022 and 0.59 in November 2022, reflecting a stronger liquidity position.

A marked increase occurred as of February 28, 2023, with the ratio rising sharply to 0.89, continuing upward to 1.04 in May 2023, and slightly decreasing to 0.92 by August 2023. The most notable shift appears in the subsequent periods, with the ratio peaking at 1.50 in November 2023, followed by further increases to 1.74 in February 2024, indicating an aggressive accumulation of cash relative to current liabilities.

Following this peak, the ratio experienced a decline to 1.33 in May 2024 and 1.19 in August 2024, before falling back to 0.92 in November 2024. In the most recent periods, the cash ratio remains relatively high, with values of 1.37 in February 2025 and 1.54 in May 2025, suggesting that the company continues to hold a significant proportion of its current liabilities in cash and cash equivalents.

Overall, the movement of the cash ratio reveals a trend toward increased liquidity, particularly from late 2022 onward, implying a strategic focus on maintaining substantial cash reserves, which could serve as a buffer against potential liquidity risks or opportunistic investments. The fluctuations reflect evolving financial strategies across different periods, but the prevailing pattern indicates an emphasis on liquidity preservation.