Western Digital Corporation (WDC)

Days of inventory on hand (DOH)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Inventory turnover		3.46	3.31	4.11	4.08	5.12
DOH	days	105.60	110.37	88.73	89.50	71.27

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.46
= 105.60

Analysis of Western Digital Corporation Days of Inventory on Hand (DOH) from 2020 to 2024:

- Western Digital Corporation's Days of Inventory on Hand (DOH) has shown a fluctuating trend over the past five years.
- The DOH increased from 71.27 days in 2020 to 89.50 days in 2021, indicating an increase in the number of days the company holds inventory before selling it.
- In 2022, there was a notable decrease in DOH to 88.73 days, suggesting potential improvements in inventory management efficiency.
- However, in 2023 and 2024, the DOH increased again to 110.37 days and 105.60 days, respectively, raising concerns about inventory turnover and potentially tying up more capital in inventory.
- The overall trend indicates some challenges in inventory management efficiency, as the company has been holding inventory for longer periods in recent years.
- Western Digital Corporation may need to focus on optimizing its inventory management processes to improve working capital efficiency and reduce the risk of obsolete inventory.