Western Digital Corporation (WDC)

Payables 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
Payables	US$ in thousands	—	—	—	—	—	1,307,000	1,193,000	1,686,000	1,902,000	1,836,000	2,022,000	1,896,000	1,934,000	1,807,000	1,939,000	1,949,000	1,945,000	1,786,000	1,736,000	1,724,000
Payables turnover		—	—	—	—	—	9.55	11.04	8.19	7.63	8.11	7.29	7.62	7.33	7.81	7.34	7.50	7.68	8.39	8.67	8.67

June 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $11,268,000K ÷ $—K
= —

The payables turnover ratio measures how efficiently a company is managing its accounts payable by evaluating how many times a company pays off its suppliers during a specific period. A higher payables turnover ratio typically indicates that a company is paying its suppliers more frequently, which may be a sign of strong liquidity and good vendor relationships.

In the case of Western Digital Corporation, the payables turnover ratio has fluctuated over the past few quarters, ranging from a low of 7.29 to a high of 11.04. The average payables turnover ratio during this period is approximately 8.14 times.

An analysis of the trend in Western Digital's payables turnover ratio indicates that the company generally pays its suppliers around 8 times a year. The increase in the payables turnover ratio from 7.29 in March 2022 to 11.04 in December 2022 suggests that the company was able to manage its accounts payable more efficiently during that period. However, the ratio decreased to 7.63 in March 2023 before increasing again in subsequent quarters.

Overall, the payables turnover ratio of Western Digital Corporation reflects moderate efficiency in managing its accounts payable. Further analysis of the company's payment terms, vendor relations, and cash flow management would provide a more comprehensive understanding of its payables management practices.