Western Digital Corporation (WDC)

Number of days of payables

		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
Payables turnover		6.50	7.08	8.78	5.16	5.83	5.98	5.86	6.57	6.58	6.96	7.44	6.20	5.81	5.91	5.41	5.62	5.32	5.56	5.31	5.39
Number of days of payables	days	56.13	51.59	41.56	70.79	62.56	61.03	62.26	55.53	55.46	52.48	49.05	58.84	62.78	61.76	67.51	65.00	68.64	65.66	68.78	67.67

June 30, 2025 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.50
= 56.13

The analysis of Western Digital Corporation's number of days of payables over the specified periods reveals considerable variations that reflect changes in the company's management of its payables and its overall financial strategy.

From September 30, 2020, to December 31, 2021, the number of days of payables remained relatively stable, fluctuating within a narrow range from approximately 65.00 to 68.78 days. This consistency suggests a steady approach to supplier payments during this period, with no significant shifts in payment terms or working capital policies.

Starting in early 2022, a gradual decrease is observed, with the days of payables declining to a low of approximately 49.05 days on December 31, 2022. This reduction indicates an increased efficiency in settling payables or a strategic effort to improve cash flow management by shortening the repayment periods to suppliers.

However, subsequent periods show variability: a slight increase to around 52.48 days at the end of March 2023, followed by an incremental rise to approximately 55.46 days in June 2023, and a marginal further increase to 55.53 days by September 2023. These movements may suggest a relaxation in payment terms or a temporary change in supplier agreements.

Significantly, the data for December 2023 shows a notable increase to approximately 62.26 days, and this upward trend continues into March and June 2024, reaching around 61.03 and 62.56 days respectively. This extension of payables duration indicates that the company possibly negotiated longer payment terms with suppliers or experienced strategic delays in payments, potentially as a means to optimize cash flow.

Interestingly, a sharp decrease occurs by September 30, 2024, when the days of payables drop to approximately 41.56 days—a significant reduction implying faster payments or tighter credit management. Yet, in the subsequent quarters, there is a recovery, with the figure rising again to roughly 51.59 days in March 2025 and 56.13 days in June 2025, suggesting a return to more extended payment periods.

Overall, the trend demonstrates fluctuations within a range from approximately 41.56 to 70.79 days. The periods of increase and decrease reflect ongoing adjustments in the company's payable policies, possibly influenced by strategic considerations around cash flow management, supplier negotiations, or operational needs. The recent rise to around 70.79 days in September 2024 indicates a period of extended payable durations, whereas the subsequent decrease to 41.56 days points to a phase of accelerated payments.