Western Digital Corporation (WDC)

Fixed asset turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	13,090,000	12,013,000	18,514,000	16,666,000	16,330,000
Property, plant and equipment	US$ in thousands	3,167,000	3,620,000	3,670,000	3,188,000	2,854,000
Fixed asset turnover		4.13	3.32	5.04	5.23	5.72

June 30, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $13,090,000K ÷ $3,167,000K
= 4.13

Fixed asset turnover is a financial ratio that measures how efficiently a company utilizes its fixed assets to generate sales revenue. In the case of Western Digital Corporation, the trend in fixed asset turnover over the past five years shows fluctuations.

In 2020, the company had a fixed asset turnover of 5.72, which indicates that for every dollar invested in fixed assets, the company generated $5.72 in sales revenue. This was followed by a decrease in 2021 to 5.23, suggesting a slight decline in asset utilization efficiency. However, in 2022, there was a significant increase in fixed asset turnover to 5.04, indicating improved efficiency in utilizing fixed assets to generate sales.

In 2023, the fixed asset turnover decreased to 3.32, suggesting a decline in the company's ability to generate sales revenue using its fixed assets efficiently. The most recent data for 2024 shows a rebound in fixed asset turnover to 4.13, indicating a slight improvement in asset utilization efficiency compared to the previous year.

Overall, while the fixed asset turnover ratio for Western Digital Corporation has shown fluctuations over the past five years, it is important for investors and stakeholders to closely monitor this ratio to assess the company's ability to effectively utilize its fixed assets to generate sales revenue.