Penguin Solutions, Inc. (PENG)
Financial leverage ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,474,510 | 1,505,960 | 1,572,060 | 1,344,800 | 786,608 |
| Total stockholders’ equity | US$ in thousands | 391,381 | 222,475 | 371,611 | 310,251 | 282,104 |
| Financial leverage ratio | 3.77 | 6.77 | 4.23 | 4.33 | 2.79 |
August 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,474,510K ÷ $391,381K
= 3.77
The financial leverage ratio of Penguin Solutions, Inc. has exhibited notable fluctuations over the analyzed period from August 31, 2020, to August 31, 2024. Starting at a ratio of 2.79 in August 2020, there was a significant increase by August 2021, reaching 4.33, indicating a rising reliance on debt financing relative to equity. This upward trend persisted into August 2022, with a marginal decline to 4.23, but the ratio remained substantially higher than the 2020 level, suggesting continued or increased financial leverage.
A pronounced spike occurred in August 2023, where the ratio surged to 6.77, reflecting a substantial amplification in the company's financial leverage. This may be indicative of increased borrowing or a reduction in equity, potentially to finance expansion, acquisitions, or other strategic initiatives. However, in the subsequent year, the ratio declined markedly to 3.77 in August 2024, indicating a reduction in leverage levels, likely attributable to deleveraging efforts, repayment of debt, or equity infusion.
Overall, the pattern illustrates a period of increasing financial leverage from 2020 through 2023, followed by a notable reduction in 2024. These fluctuations highlight the company's changing approach to debt management and capital structure over the evaluated timeframe.
Peer comparison
Aug 31, 2024