Western Digital Corporation (WDC)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	11,268,000	11,273,000	11,413,000	11,565,000	11,802,000	12,479,000	13,165,000	13,804,000	14,504,000	14,886,000	14,734,000	14,453,000	14,182,000	14,109,000	14,235,000	14,610,000	14,932,000	14,983,000	15,048,000	14,943,000
Inventory	US$ in thousands	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	3,070,000	3,091,000	3,122,000	3,287,000
Inventory turnover		3.37	3.51	3.55	3.31	3.19	3.14	3.49	3.57	3.99	4.07	4.04	4.08	3.92	3.83	3.98	4.35	4.86	4.85	4.82	4.55

June 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $11,268,000K ÷ $3,342,000K
= 3.37

Inventory turnover is a key financial ratio used to assess how efficiently a company manages its inventory. It measures the number of times a company sells and replaces its inventory during a specific period.

Looking at the inventory turnover trend of Western Digital Corporation over the past few quarters, we can observe fluctuations in the ratio. The ratio has varied between 3.14 and 4.86 over the last 20 quarters, indicating some level of volatility in the company's inventory management practices.

A higher inventory turnover ratio typically signifies better inventory management and suggests that the company is selling its inventory quickly. On the other hand, a lower ratio may indicate slow-moving or obsolete inventory.

In the case of Western Digital Corporation, the inventory turnover ratio has generally been within a range of 3.14 to 4.86, with the ratio experiencing some fluctuations but maintaining a consistent level overall. This suggests that the company has been effectively managing its inventory levels and turnover, although there may be some room for improvement to achieve more consistent efficiency in this aspect of its operations.

It would be beneficial for the company to further analyze the factors impacting its inventory turnover and explore strategies to optimize the efficiency of its inventory management processes in order to maintain a stable and potentially higher inventory turnover ratio in the future.