Western Digital Corporation (WDC)

Inventory turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cost of revenue	US$ in thousands	5,828,000	10,058,000	10,431,000	12,919,000	12,401,000
Inventory	US$ in thousands	1,291,000	3,342,000	3,698,000	3,638,000	3,616,000
Inventory turnover		4.51	3.01	2.82	3.55	3.43

June 30, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $5,828,000K ÷ $1,291,000K
= 4.51

The inventory turnover ratios for Western Digital Corporation over the specified periods demonstrate notable fluctuations. As of June 30, 2021, the ratio stood at 3.43, indicating that the company sold and replaced its inventory approximately 3.43 times during the fiscal year. This slightly increased to 3.55 by June 30, 2022, suggesting a marginal improvement in inventory management efficiency.

However, a decline is observed in the subsequent year, with the ratio decreasing to 2.82 on June 30, 2023. This decline may reflect slower inventory turnover, potentially due to increased inventory levels, decreased sales velocity, or shifts in product demand. The ratio showed signs of recovery in the following year, rising to 3.01 as of June 30, 2024, indicating a modest improvement in inventory management.

The most substantial change appears in the year ending June 30, 2025, where the inventory turnover ratio jumps to 4.51. This significant increase suggests a marked enhancement in inventory utilization, possibly driven by improved sales performance, better inventory control, or strategic adjustments to product distribution and supply chain management.

Overall, the trend indicates periods of decline and subsequent recovery in inventory efficiency, culminating in a notable improvement in the most recent year, which could positively impact the company’s working capital management and profitability ratios.