Penguin Solutions, Inc. (PENG)

Net profit margin

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Net income	US$ in thousands	-52,472	-187,526	66,557	21,310	-1,143
Revenue	US$ in thousands	1,170,800	1,441,250	1,395,880	1,055,530	1,122,380
Net profit margin		-4.48%	-13.01%	4.77%	2.02%	-0.10%

August 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $-52,472K ÷ $1,170,800K
= -4.48%

The net profit margin of Penguin Solutions, Inc. has exhibited significant fluctuations over the observed period. As of August 31, 2020, the company recorded a negative net profit margin of -0.10%, indicating a very marginal loss relative to its revenue. This marginal loss was followed by a substantial improvement in the subsequent year, with the margin increasing to 2.02% on August 31, 2021, reflecting a shift to profitability and an enhancement in operational efficiency or revenue growth surpassing expenses.

The positive trend continued into August 31, 2022, with the net profit margin reaching 4.77%, which signifies further profitability and potential effective management strategies or favorable market conditions impacting the company's bottom line. However, the subsequent period reveals a downturn; as of August 31, 2023, the net profit margin sharply declined to -13.01%, indicating a significant loss relative to revenues. This deterioration could be attributable to increased costs, reduced revenue, or one-time charges impacting profitability.

The most recent data, as of August 31, 2024, shows a partial recovery with a net profit margin of -4.48%. Although this figure remains negative, the improvement from the previous year suggests some stabilization or mitigation of losses, but it still reflects unprofitable operations.

Overall, the company's net profit margin has experienced considerable volatility, characterized by initial marginal losses, a period of profitability, followed by a pronounced decline into losses, and a partial recovery of losses. These fluctuations indicate potential operational challenges and may warrant further analysis to determine underlying causes and assess the company's strategic position for future profitability.