Western Digital Corporation (WDC)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	8,233,000	9,106,000	10,180,000	9,951,000	10,058,000	10,227,000	10,288,000	10,327,000	10,431,000	10,934,000	11,617,000	12,288,000	12,919,000	13,190,000	13,036,000	12,769,000	12,401,000	12,251,000	12,375,000	12,691,000
Inventory	US$ in thousands	1,291,000	1,311,000	3,420,000	3,384,000	3,342,000	3,215,000	3,216,000	3,497,000	3,698,000	3,979,000	3,773,000	3,862,000	3,638,000	3,661,000	3,647,000	3,544,000	3,616,000	3,683,000	3,576,000	3,355,000
Inventory turnover		6.38	6.95	2.98	2.94	3.01	3.18	3.20	2.95	2.82	2.75	3.08	3.18	3.55	3.60	3.57	3.60	3.43	3.33	3.46	3.78

June 30, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $8,233,000K ÷ $1,291,000K
= 6.38

The inventory turnover ratio of Western Digital Corporation has exhibited notable fluctuations over the analyzed period. Initially, the ratio stood at 3.78 as of September 30, 2020, indicating that inventory was sold and replaced approximately 3.78 times during that quarter. Over the subsequent quarters, there was a general downward trend: it decreased to 3.46 by December 31, 2020, and further declined to 3.33 in March 2021, before showing marginal stabilization around 3.43 to 3.60 through June 2021 to December 2021, reflecting a period of relative consistency in inventory management efficiency.

From the end of 2021 onwards, a gradual decline in inventory turnover continued into 2022, reaching approximately 3.18 by September 30, 2022, and dipping further to 3.08 by December 2022. In early 2023, the ratio declined more notably, dropping to 2.75 at the end of March, then slightly rising to 2.82 in June before reaching 2.95 by September 2023. This indicates a period of decreasing inventory efficiency, implying longer holding periods for inventory.

However, starting from December 2023, the ratio began to recover, reaching 3.20 in March 2024 and slightly decreasing again to 3.01 in June 2024, then marginally increasing to 2.94 by September 2024 and 2.98 in December 2024. Notably, a significant increase is observed in March 2025, where the ratio sharply jumps to 6.95, followed by a slight decrease to 6.38 in June 2025. This spike suggests a substantial improvement in inventory turnover, signaling much faster inventory liquidation during that period.

Overall, the trend indicates periods of both decline and recovery, with the most recent data reflecting a substantial improvement in inventory turnover, potentially pointing to either enhanced operational efficiencies, changes in inventory management strategies, or shifts in demand and supply chain dynamics.