Penguin Solutions, Inc. (PENG)

Current 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
Total current assets US$ in thousands 1,249,900 1,244,760 995,579 867,704 942,327 884,730 986,848 907,402 938,911 978,170 1,121,910 1,151,860 1,167,570 1,131,720 943,837 950,818 806,245 578,827 558,523 556,710
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
Current ratio 2.62 2.63 2.33 2.65 2.68 3.30 2.68 2.13 2.44 2.33 2.03 2.23 2.22 2.12 1.76 1.63 1.64 1.79 1.98 1.97

May 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,249,900K ÷ $476,744K
= 2.62

The current ratio of Penguin Solutions, Inc., over the provided period, exhibits a generally stable and positive liquidity position, with fluctuations within a relatively narrow range. At the beginning of the observed timeframe on August 31, 2020, the current ratio stood at approximately 1.97, indicating that current assets nearly twice exceeded current liabilities. This ratio remained close to 2.0 through most of 2020 and the first half of 2021, with minor fluctuations.

From late 2021 onwards, the current ratio experienced a gradual upward trend, surpassing 2.0 by February 28, 2022, and reaching a peak of 2.44 on May 31, 2023. This sustained increase suggests an improving liquidity position, with current assets increasingly surpassing current liabilities. Notably, on February 29, 2024, the ratio reached 3.30, indicating a significant strengthening of liquidity at that point.

Subsequently, the ratio experienced a slight decrease to 2.68 as of May 31, 2024, and further to 2.65 on August 31, 2024. By November 30, 2024, it declined to 2.33, before rising again to 2.63 on February 28, 2025, and remaining relatively stable around 2.62 up to the latest date of May 31, 2025.

Overall, the current ratio consistently exceeds 1.0 throughout the period, reflecting that Penguin Solutions maintains a liquidity cushion sufficient to meet short-term obligations. The observed upward trend over time indicates an improvement in liquidity position, with peak ratios suggesting periods of significant short-term asset accumulation relative to liabilities. The ratios staying well above 1.0 imply that there is little concern regarding short-term solvency, though the occasional fluctuations highlight periods of either asset accumulation or slight easing in liquidity.