Western Digital Corporation (WDC)

Days of inventory on hand (DOH)

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	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
Inventory turnover		6.38	6.95	2.98	2.94	3.01	3.18	3.20	2.95	2.82	2.75	3.08	3.18	3.55	3.60	3.57	3.60	3.43	3.33	3.46	3.78
DOH	days	57.23	52.55	122.62	124.12	121.28	114.74	114.10	123.60	129.40	132.83	118.55	114.72	102.78	101.31	102.11	101.30	106.43	109.73	105.47	96.49

June 30, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 6.38
= 57.23

The analysis of Western Digital Corporation’s days of inventory on hand (DOH) over the specified periods reveals notable fluctuations and trends. Starting from September 30, 2020, the DOH was approximately 96.49 days, indicating the company's inventory held for just over three months. This figure increased steadily through the subsequent quarters, reaching a peak of approximately 132.83 days by March 31, 2023. The rising trend suggests a lengthening of inventory holding periods during this interval, potentially reflecting shifts in demand, supply chain conditions, or inventory management strategies.

After this peak, the DOH experienced a decline towards the end of 2023, decreasing to around 114.10 days as of December 31, 2023. This reduction continued slightly into early 2024, with the figure around 114.74 days in the first quarter and further declining to 122.62 days by the end of the second quarter of 2024. Notably, a significant change occurred by March 31, 2025, where the DOH sharply decreased to approximately 52.55 days, and remained relatively low at 57.23 days in the subsequent quarter.

This overall pattern indicates a prolonged period of inventory accumulation from late 2020 to early 2023, followed by a phase of inventory reduction starting mid-2024. The recent sharp decrease in DOH suggests that Western Digital has been moving toward more efficient inventory management, possibly aiming to reduce excess stock levels or respond to changing market dynamics, demand patterns, or supply chain efficiencies. The shorter inventory holding periods in 2025 potentially point to improved operational efficiencies or strategic shifts to align inventory levels more closely with actual sales.