Penguin Solutions, Inc. (PENG)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -8,587 | -5,632 | -27,334 | -52,472 | -168,769 | -198,840 | -212,439 | -187,526 | -26,723 | 21,845 | 51,522 | 66,557 | 67,248 | 35,924 | 39,310 | 21,310 | 8,188 | 16,224 | 660 | -1,143 |
| Total assets | US$ in thousands | 1,802,780 | 1,811,340 | 1,583,020 | 1,474,510 | 1,546,130 | 1,517,450 | 1,630,860 | 1,505,960 | 1,591,190 | 1,640,080 | 1,807,660 | 1,572,060 | 1,554,050 | 1,508,510 | 1,323,700 | 1,344,800 | 1,189,060 | 820,807 | 784,725 | 786,608 |
| ROA | -0.48% | -0.31% | -1.73% | -3.56% | -10.92% | -13.10% | -13.03% | -12.45% | -1.68% | 1.33% | 2.85% | 4.23% | 4.33% | 2.38% | 2.97% | 1.58% | 0.69% | 1.98% | 0.08% | -0.15% |
May 31, 2025 calculation
ROA = Net income (ttm) ÷ Total assets
= $-8,587K ÷ $1,802,780K
= -0.48%
The analysis of Penguin Solutions, Inc.'s return on assets (ROA) over the specified periods reveals significant fluctuations and recent negative trends. Initially, the ROA demonstrated a slight negative figure of –0.15% as of August 31, 2020, indicating a marginal loss relative to the company’s assets. This was followed by a modest recovery to 0.08% by November 30, 2020, and a more substantial positive turnaround reaching 1.98% as of February 28, 2021, which signified improved profitability.
Between May 31, 2021, and August 31, 2021, the ROA exhibited sustained positive performance, increasing from 0.69% to 1.58%, and further strengthening to 2.97% by November 30, 2021. The upward trend persisted into early 2022, with ROA reaching 2.38% on February 28, 2022, and peaking at 4.33% by May 31, 2022, before a slight decline to 4.23% in August 2022. During this period, the company demonstrated consistent profitability and effective utilization of its assets.
However, starting from late 2022 and into 2023, the ROA declined sharply. By November 30, 2022, it decreased to 2.85%, and further fell to 1.33% in February 2023, indicating diminishing efficiency or profitability relative to assets. The negative trend intensified into 2023 and 2024, with the ROA turning markedly negative: –1.68% on May 31, 2023; –12.45% on August 31, 2023; and reaching –13.03% by November 30, 2023. The subsequent quarters showed a slight improvement but remained negative, with values such as –13.10% in February 2024, –10.92% in May 2024, and –3.56% in August 2024. Towards the most recent period, the ROA approached near breakeven, recording –1.73% on November 30, 2024, and improving marginally to –0.31% on February 28, 2025, with a slight decline again to –0.48% by May 31, 2025.
This pattern indicates that while the company experienced periods of profitability and asset efficiency from early 2021 through mid-2022, recent years have been characterized by a substantial decline in ROA, transitioning into persistent negative territory. The recent negative ROA figures suggest deteriorations in profitability or asset utilization, possibly reflecting operational challenges, shifts in the industry landscape, or external economic factors impacting performance. The trend underscores the need for strategic evaluation concerning asset management and operational strategies moving forward.
Peer comparison
May 31, 2025