Penguin Solutions's Days Sales Outstanding for the
three
months ended in Feb. 2026 was 92.69.
Penguin Solutions's Days Inventory for the
three
months ended in Feb. 2026 was 98.02.
Penguin Solutions's Days Payable for the
three
months ended in Feb. 2026 was 129.28.
Therefore, Penguin Solutions's Cash Conversion Cycle (CCC) for the
three
months ended in Feb. 2026 was 61.43.
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Penguin Solutions Cash Conversion Cycle Related Terms
Penguin Solutions Cash Conversion Cycle Historical Data
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The historical data trend for Penguin Solutions's Cash Conversion Cycle can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PENG vs VNET, KD, CHRN: Cash Conversion Cycle Comparison
For the Information Technology Services subindustry, Penguin Solutions's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Penguin Solutions Cash Conversion Cycle vs Software Industry
For the Software industry and Technology sector, Penguin Solutions's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Penguin Solutions's Cash Conversion Cycle falls into.
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
Penguin Solutions's Cash Conversion Cycle for the fiscal year that ended in Aug. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Penguin Solutions (PENG) has a Cash Conversion Cycle of 61.43 as of Feb. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Penguin Solutions and its competitors.
Is Penguin Solutions' Cash Conversion Cycle too high?
Penguin Solutions' current Cash Conversion Cycle is 61.43. The Software industry median Cash Conversion Cycle is 32.56. Penguin Solutions' value of 61.43 is 88.7% above this industry median. Overall, Penguin Solutions has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Penguin Solutions' Cash Conversion Cycle compare to VNET and KD?
Penguin Solutions' Cash Conversion Cycle of 61.43 can be compared against companies in the Software industry. The industry median Cash Conversion Cycle is 32.56. Penguin Solutions' value of 61.43 is 88.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Software company?
The median Cash Conversion Cycle among Software companies is 32.56, based on 2,805 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Penguin Solutions's current Cash Conversion Cycle of 61.43 is 88.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Penguin Solutions and its competitors. For the Software industry, the median Cash Conversion Cycle is 32.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penguin Solutions's current Cash Conversion Cycle is 61.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Penguin Solutions stock overvalued right now?
Based on GuruFocus' analysis, Penguin Solutions (PENG) is currently considered Significantly Overvalued. The stock's GF Value™ is $23.82, compared to a current price of $64.72 — trading 171.7% above its estimated fair value. The current Cash Conversion Cycle is 61.43 and 88.7% above the Software industry median of 32.56. Penguin Solutions' overall GF Score™ is 71/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Penguin Solutions (PENG), the current Cash Conversion Cycle is 61.43 as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Penguin Solutions (PENG) Overvalued in 2026?
Based on GuruFocus' analysis, Penguin Solutions stock appears to be overvalued.
The current stock price of $64.72 is trading 171.7% above its estimated GF Value™ of $23.82.
GuruFocus considers Penguin Solutions to be Significantly Overvalued.
Key valuation signals for PENG:
Cash Conversion Cycle: 61.43
GF Value™: $23.82 vs. price of $64.72 (171.7% above fair value)
Industry Position: 88.7% above the Software median
No single metric tells the full story. See the PENG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Penguin Solutions Inc is an end-to-end technology company engaged in Intelligent Platform Solutions, Integrated Memory, and Optimized LED business. Its product include Servers, software, OCP HPC & AI system, Racks and Edge. Servers include AMD-based Serves, Intel-based Servers, etc. Software products include Scyld ClusterWare, Scyld Cloud Central, etc. OCP HPC & AI Systems includes OCP Servers & Storage and etc.
71GF Score
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Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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