Western Digital Corporation (WDC)

Payables 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
Payables	US$ in thousands	1,266,000	1,287,000	1,159,000	1,930,000	1,724,000	1,710,000	1,755,000	1,571,000	1,585,000	1,572,000	1,561,000	1,981,000	2,222,000	2,232,000	2,411,000	2,274,000	2,332,000	2,204,000	2,332,000	2,353,000
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

June 30, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $8,233,000K ÷ $1,266,000K
= 6.50

The payables turnover ratio of Western Digital Corporation has exhibited notable fluctuations over the analyzed period from September 30, 2020, to June 30, 2025. Initially, the ratio hovered around 5.39 in September 2020, experiencing minor variations through the subsequent quarters and reaching a peak of approximately 7.44 in December 2022. This upward trend indicates an increase in the frequency with which the company settled its accounts payable relative to its average payable balance, reflecting potentially improved payment efficiency or adjustments in payables management.

Between December 2022 and March 2023, there was a slight decrease to 6.96, followed by a further decline to 5.16 by September 2024. The notable dip in the latter period suggests a possible extension of payment terms, strategic delay in settling obligations, or shifts in supplier payment policies. Conversely, the ratio demonstrates a significant spike to 8.78 in December 2024, indicating a period of accelerated payments or potentially a reduction in outstanding payables.

Moving into early 2025, the payables turnover slightly declined to 7.08 in March and further to 6.50 in June, signaling a trend toward settling payables more slowly relative to the preceding period. Overall, the pattern reflects a general fluctuation with periods of both increased and decreased payment frequency, likely driven by operational considerations, supply chain dynamics, or financial strategy shifts. These variations suggest that Western Digital's approach to managing its accounts payable has evolved over time, with periods of tighter payment cycles followed by phases of lengthening payables.