Western Digital Corporation (WDC)

Payables 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
Payables	US$ in thousands	1,266,000	1,724,000	1,585,000	2,222,000	2,332,000
Payables turnover		4.60	5.83	6.58	5.81	5.32

June 30, 2025 calculation

Payables turnover = Cost of revenue ÷ Payables
= $5,828,000K ÷ $1,266,000K
= 4.60

The payables turnover ratio for Western Digital Corporation exhibits fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. Starting at a value of 5.32 in 2021, the ratio increased to 5.81 in 2022 and further to 6.58 in 2023, indicating an improvement in the company's ability to settle its payables more frequently within the fiscal year. However, this upward trend reverses in subsequent years, with the ratio declining to 5.83 in 2024 and further decreasing to 4.60 in 2025.

This trend suggests that the company initially improved its efficiency in paying its suppliers, but starting from 2024 onwards, there was a reduction in the turnover rate, possibly indicating lengthened payment cycles or changes in payment strategies. The decline to 4.60 in 2025 implies that the company is settling its accounts payable less frequently than in prior years, which may reflect strategic shifts—such as extending payment terms—or potential liquidity constraints. Overall, the observed pattern highlights variability in the company's payable management efficiency over the examined period.