Western Digital Corporation (WDC)

The analysis of Western Digital Corporation’s days of sales outstanding (DSO) over the specified period reveals notable fluctuations in receivables collection efficiency. As of June 30, 2021, the DSO was approximately 48.68 days, indicating that on average, it took the company just under 50 days to collect its receivables. By June 30, 2022, the DSO increased to 54.46 days, reflecting a slowdown in receivables collection, which could suggest extended credit terms, delays in customer payments, or shifts in the customer base.

Subsequently, the DSO decreased to around 47.35 days on June 30, 2023, indicating an improvement in receivables management or possibly tighter credit policies, reverting to levels comparable to the 2021 figure. However, a significant upward trend is observed in subsequent years, with the DSO rising sharply to 60.80 days by June 30, 2024, and further increasing to approximately 70.55 days by June 30, 2025. This sustained increase suggests a deterioration in receivables collection efficiency, potentially due to extended credit terms, customer financial difficulties, or changes in invoicing practices.

In sum, while Western Digital's DSO experienced some fluctuation within the four-year span, the most recent data indicates a considerable increase, which could impact cash flow and working capital management. The trend points to an increasing reliance on extended credit periods or challenges in collecting receivables efficiently, warranting further scrutiny into the company’s credit and collection policies.

Peer comparison

Jun 30, 2025