Western Digital Corporation (WDC)

Receivables 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
Revenue (ttm)	US$ in thousands	13,279,000	14,438,000	15,601,000	14,348,000	13,003,000	11,911,000	11,257,000	11,332,000	12,318,000	14,174,000	15,752,000	17,478,000	18,793,000	19,185,000	18,941,000	18,051,000	16,922,000	16,289,000	16,327,000	16,618,000
Receivables	US$ in thousands	1,840,000	1,469,000	2,597,000	2,458,000	2,166,000	1,800,000	1,523,000	1,451,000	1,598,000	1,591,000	1,905,000	2,422,000	2,804,000	2,353,000	2,743,000	2,446,000	2,257,000	1,905,000	1,833,000	2,097,000
Receivables turnover		7.22	9.83	6.01	5.84	6.00	6.62	7.39	7.81	7.71	8.91	8.27	7.22	6.70	8.15	6.91	7.38	7.50	8.55	8.91	7.92

June 30, 2025 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $13,279,000K ÷ $1,840,000K
= 7.22

The receivables turnover ratio of Western Digital Corporation has demonstrated variability over the period from September 2020 through June 2025.

At the beginning of the observed period, the ratio was 7.92 times as of September 2020, indicating that the company collected its average receivables approximately 7.92 times annually. This ratio increased subsequently, reaching a peak of 8.91 times in December 2020 and March 2023, suggesting periods of more efficient receivables management and quicker collection cycles. In particular, the ratio shows a general upward trend from September 2020 through March 2023, reflecting improvements or stability in receivables collection processes during this timeframe.

Contrastingly, between March 2023 and September 2024, a declining trend is apparent. The ratio decreased from 8.91 times to 5.84 times by September 2024, with notable dips such as down to 6.62 in March 2024 and further to 6.00 in June 2024. This decline indicates elongation in the average collection period, potentially reflecting challenges in receivables management, changes in credit policies, or variations in customer payment behavior.

In the subsequent period, from September 2024 through June 2025, the ratio shows signs of recovery, rising from 5.84 to 8.94 times, the latter being the highest point in the series. This increase suggests an improvement in receivables collection efficiency, possibly due to better credit controls or improved customer payment practices. The ratio's variation implies fluctuations in collection performance throughout the period, but overall, there are periods of both acceleration and deceleration in receivables turnover.

Overall, the data indicates that Western Digital’s receivables management has experienced fluctuations characterized by periods of efficiency gains, notably in late 2020 to early 2023, followed by a period of decline, and then a partial recovery in the latter half of the observed period. These variations could be influenced by internal policies, market conditions, customer mix, or macroeconomic factors impacting the company’s collection cycles.