Penguin Solutions, Inc. (PENG)
Financial leverage 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 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 |
| Total stockholders’ equity | US$ in thousands | 584,771 | 602,528 | 400,375 | 391,381 | 423,449 | 405,042 | 410,160 | 222,475 | 318,097 | 325,829 | 352,120 | 371,611 | 392,602 | 348,827 | 322,940 | 310,251 | 269,433 | 258,559 | 278,318 | 282,104 |
| Financial leverage ratio | 3.08 | 3.01 | 3.95 | 3.77 | 3.65 | 3.75 | 3.98 | 6.77 | 5.00 | 5.03 | 5.13 | 4.23 | 3.96 | 4.32 | 4.10 | 4.33 | 4.41 | 3.17 | 2.82 | 2.79 |
May 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,802,780K ÷ $584,771K
= 3.08
The financial leverage ratio of Penguin Solutions, Inc. exhibits significant fluctuations over the analyzed period. Initially, as of August 31, 2020, the ratio stood at 2.79, reflecting a moderate level of leverage. This ratio experienced a gradual increase, reaching a peak of approximately 6.77 on August 31, 2023, indicating a substantial reliance on debt financing relative to equity during this period.
The upward trend from 2020 through 2023 suggests the company progressively increased its leverage, possibly to fund expansion, acquisitions, or other strategic initiatives. The peak in August 2023 signifies the highest degree of financial leverage observed in the given timeframe, which could imply heightened financial risk, given the greater burden of debt obligations.
Following this peak, there is a noticeable decline by November 30, 2023, to 3.98, and further reductions through 2024 and into early 2025, with ratios of approximately 3.75, 3.65, and 3.77, respectively. This downward trend may reflect measures to deleverage, reduce debt levels, or improve the company’s financial stability and risk profile.
Overall, the ratio's pattern indicates periods of aggressive leveraging followed by strategic deleveraging efforts. The fluctuating leverage ratio highlights the company's dynamic approach to capital structure management, balancing growth ambitions with risk mitigation strategies.
Peer comparison
May 31, 2025