Western Digital Corporation (WDC)

Days of inventory on hand (DOH)

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Inventory turnover		3.37	3.51	3.55	3.31	3.19	3.14	3.49	3.57	3.99	4.07	4.04	4.08	3.92	3.83	3.98	4.35	4.86	4.85	4.82	4.55
DOH	days	108.26	104.10	102.85	110.37	114.37	116.38	104.61	102.12	91.55	89.77	90.35	89.50	93.06	95.28	91.69	83.82	75.04	75.30	75.73	80.29

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.37
= 108.26

The days of inventory on hand (DOH) for Western Digital Corporation has exhibited a fluctuating trend over the past few quarters. The company's inventory turnover efficiency has shown some variability, with the DOH ranging from a low of 75.04 days in the first quarter of 2020 to a high of 116.38 days in the first quarter of 2023.

In recent quarters, the DOH has generally been above 100 days, indicating that Western Digital has a relatively high level of inventory on hand compared to its sales volume. This prolonged holding of inventory may suggest potential issues with managing and optimizing inventory levels efficiently.

It is important for Western Digital to keep a close eye on its inventory management practices to ensure that excess inventory is minimized, as holding excessive levels of inventory can tie up valuable capital and lead to increased carrying costs. Continued monitoring and optimization of inventory levels can help improve liquidity, cash flow, and overall operational efficiency for the company.