Western Digital Corporation (WDC)

Days of sales outstanding (DSO)

		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
Receivables turnover		8.94	9.83	6.01	5.84	6.00	6.62	7.39	7.81	7.71	8.91	8.27	7.22	6.70	8.15	6.91	7.38	7.50	8.55	8.91	7.92
DSO	days	40.85	37.14	60.76	62.53	60.80	55.16	49.38	46.74	47.35	40.97	44.14	50.58	54.46	44.77	52.86	49.46	48.68	42.69	40.98	46.06

June 30, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 8.94
= 40.85

The analysis of Western Digital Corporation's days of sales outstanding (DSO) from September 30, 2020, through June 30, 2025, reveals notable fluctuations over this period. Initially, the DSO decreased from approximately 46.06 days in September 2020 to a low of around 40.98 days at the end of 2020, indicating improved collection efficiency or shorter receivables periods during that time.

However, starting in early 2021, the DSO experienced an upward trend, reaching peaks near 52.86 days by the end of 2021. This increase suggests a slowdown in the collection process or potentially extended credit terms granted to customers. The early months of 2022 saw a slight reduction to approximately 44.77 days, but this was followed by a resurgence in DSO levels, peaking at approximately 54.46 days in June 2022.

Subsequently, the DSO showed some variability, declining again to around 44.14 days at the end of 2022 before gradually increasing in the subsequent quarters. By March 2023, the DSO was approximately 40.97 days, indicating an improvement, but this was followed by an upward trend, reaching about 47.35 days in June 2023 and 46.74 days in September 2023.

The data from late 2023 to early 2024 demonstrates a further increase, with the DSO reaching approximately 55.16 days in March 2024 and peaking at around 62.53 days in September 2024. This period indicates a significant elongation in the receivables collection cycle. However, in late 2024 and early 2025, there appears to be a tightening, with the DSO decreasing to approximately 37.14 days in March 2025, before slightly increasing again to 40.85 days in June 2025.

Overall, the DSO over this timeframe exhibits cyclical patterns with periods of elongation aligning with potential strategic adjustments, economic factors, or changes in credit policies. The most recent data suggests a decrease in DSO, implying a potential improvement in receivables collection efficiency or a shift in credit management practices.