Western Digital Corporation (WDC)

Working capital 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
Total current assets	US$ in thousands	5,856,000	8,086,000	9,372,000	8,942,000	8,060,000	7,532,000	7,838,000	7,577,000	7,886,000	8,483,000	8,381,000	9,071,000	9,453,000	9,178,000	9,535,000	9,856,000	9,757,000	9,032,000	9,109,000	9,005,000
Total current liabilities	US$ in thousands	5,418,000	5,182,000	4,706,000	6,091,000	6,087,000	4,053,000	4,693,000	5,792,000	5,434,000	5,261,000	4,382,000	4,966,000	4,557,000	4,397,000	4,929,000	4,709,000	4,870,000	4,501,000	4,526,000	4,429,000
Working capital turnover		30.32	4.97	3.34	5.03	6.59	3.42	3.58	6.35	5.02	4.40	3.94	4.26	3.84	4.01	4.11	3.51	3.46	3.60	3.56	3.63

June 30, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $13,279,000K ÷ ($5,856,000K – $5,418,000K)
= 30.32

The working capital turnover ratios for Western Digital Corporation over the period from September 2020 through June 2025 indicate fluctuating operational efficiency in utilizing working capital to generate sales.

Initially, the ratio was relatively stable, hovering between 3.46 and 3.63 from September 2020 to September 2021, suggesting consistent management of working capital relative to sales during this period. A noticeable increase occurred at the end of 2021, reaching 4.11 in December 2021, which persisted into early 2022 with ratios of 4.01 and 3.84 in March and June 2022 respectively.

From mid-2022 onward, the ratio exhibited upward momentum, peaking notably at 6.35 in September 2023, indicating improved efficiency or changes in working capital management as sales increased relative to working capital. The ratio then declined sharply to 3.58 at the end of 2023 before further reductions in early 2024, with the ratio dropping to 3.42 in March 2024 and slightly rising again to 6.59 in June 2024.

Subsequent quarters saw a decline to 5.03 in September 2024 and further down to 3.34 in December 2024, followed by a rise to 4.97 in March 2025 and an extraordinary spike to 30.32 in June 2025.

In summary, the working capital turnover ratio displays considerable volatility, with periods of increased efficiency, potentially driven by strategic operational adjustments or changes in sales and working capital levels. The extreme increase in June 2025 suggests a significant shift in either sales performance or working capital management, necessitating further analysis of the underlying financial activities during that period for a complete interpretation.