Western Digital Corporation (WDC)

Fixed asset turnover

		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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Revenue (ttm)	US$ in thousands	13,090,000	11,595,000	10,969,000	11,079,000	12,005,000	13,886,000	15,469,000	17,192,000	18,500,000	18,881,000	18,631,000	17,736,000	16,600,000	15,953,000	16,072,000	16,444,000	16,647,000	16,083,000	15,464,000	15,345,000
Property, plant and equipment	US$ in thousands	3,167,000	3,253,000	3,315,000	3,371,000	3,620,000	3,668,000	3,688,000	3,718,000	3,670,000	3,488,000	3,367,000	3,260,000	3,188,000	3,061,000	2,918,000	2,897,000	2,854,000	2,735,000	2,722,000	2,796,000
Fixed asset turnover		4.13	3.56	3.31	3.29	3.32	3.79	4.19	4.62	5.04	5.41	5.53	5.44	5.21	5.21	5.51	5.68	5.83	5.88	5.68	5.49

June 30, 2024 calculation

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

Western Digital Corporation's fixed asset turnover ratio has shown fluctuations over the past few quarters. The ratio measures the company's ability to generate revenues from its investment in fixed assets.

The trend in the fixed asset turnover ratio indicates that the efficiency of Western Digital's fixed asset utilization has varied. The ratio reached a peak of 5.88 in the quarter ending March 31, 2020, indicating that the company was generating $5.88 in revenue for every dollar invested in fixed assets.

However, the ratio has since declined and exhibited some volatility. It dropped to 3.29 in the quarter ending September 30, 2023, indicating a decrease in revenue generated per dollar of fixed assets.

Although the ratio has experienced fluctuations, it has generally been above 3, suggesting that Western Digital has been effectively utilizing its fixed assets to generate revenue. Investors should continue to monitor the trend in the fixed asset turnover ratio to assess the company's ability to efficiently utilize its fixed assets in the future.