Western Digital Corporation (WDC)

Days of sales outstanding (DSO)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Receivables turnover		6.03	7.52	6.60	7.38	6.86
DSO	days	60.51	48.55	55.28	49.43	53.17

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.03
= 60.51

The days of sales outstanding (DSO) for Western Digital Corporation have shown variability over the past five years. In the most recent fiscal year ending June 30, 2024, the DSO stood at 60.51 days, indicating an increase compared to the previous year. This suggests that on average, it took the company 60.51 days to collect its accounts receivable from customers.

Compared to fiscal year 2023, where the DSO was 48.55 days, the increase in DSO for 2024 may indicate a slower collection of receivables or potentially a change in the company's credit policies that have impacted the collection period.

Looking further back, there is a fluctuation in DSO over the five-year period. In general, a lower DSO indicates that the company is collecting its receivables more quickly, which is a positive sign of efficient credit management. Conversely, a higher DSO could imply potential issues with collecting payments promptly from customers or changes in sales terms.

Overall, monitoring the DSO trend can provide valuable insights into the efficiency of Western Digital Corporation's account receivables management and its ability to control credit risk and liquidity. Further analysis and comparison with industry benchmarks may offer additional context and help in evaluating the company's financial performance and working capital management.