Western Digital Corporation (WDC)

Working capital 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
Revenue (ttm)	US$ in thousands	13,090,000	11,595,000	10,969,000	11,079,000	12,005,000	13,886,000	15,469,000	17,192,000	18,500,000	18,881,000	18,631,000	17,736,000	16,600,000	15,953,000	16,072,000	16,444,000	16,647,000	16,083,000	15,464,000	15,345,000
Total current assets	US$ in thousands	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	9,048,000	8,553,000	8,627,000	8,500,000
Total current liabilities	US$ in thousands	6,087,000	4,053,000	4,693,000	5,792,000	5,434,000	5,261,000	4,382,000	4,966,000	5,237,000	4,397,000	4,929,000	4,709,000	4,870,000	4,501,000	4,526,000	4,429,000	4,406,000	4,471,000	4,482,000	4,288,000
Working capital turnover		6.63	3.33	3.49	6.21	4.90	4.31	3.87	4.19	4.39	3.95	4.04	3.45	3.40	3.52	3.51	3.59	3.59	3.94	3.73	3.64

June 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $13,090,000K ÷ ($8,060,000K – $6,087,000K)
= 6.63

The working capital turnover ratio for Western Digital Corporation has shown fluctuations over the past several quarters, ranging from a low of 3.33 to a high of 6.63. This ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively managing its working capital to support its operations and generate sales.

In analyzing the trend, we can observe that the working capital turnover ratio has generally been above 3.5 over the past few years, indicating that Western Digital has been efficiently utilizing its working capital to generate sales revenue. The peak ratio of 6.63 in June 2024 suggests a particularly efficient use of working capital during that period.

However, it is important to note the fluctuations in the ratio over time, which may reflect changes in the company's operating efficiency, sales growth, or working capital management practices. Investors and stakeholders should closely monitor this ratio along with other financial metrics to assess the company's overall financial performance and operational efficiency.