Western Digital Corporation (WDC)
Cash conversion cycle
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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Days of inventory on hand (DOH) | days | 57.23 | 52.55 | 122.62 | 124.12 | 121.28 | 114.74 | 114.10 | 123.60 | 129.40 | 132.83 | 118.55 | 114.72 | 102.78 | 101.31 | 102.11 | 101.30 | 106.43 | 109.73 | 105.47 | 96.49 |
Days of sales outstanding (DSO) | days | 40.85 | 37.14 | 60.76 | 62.53 | 60.80 | 55.16 | 49.38 | 46.74 | 47.35 | 40.97 | 44.14 | 50.58 | 54.46 | 44.77 | 52.86 | 49.46 | 48.68 | 42.69 | 40.98 | 46.06 |
Number of days of payables | days | 56.13 | 51.59 | 41.56 | 70.79 | 62.56 | 61.03 | 62.26 | 55.53 | 55.46 | 52.48 | 49.05 | 58.84 | 62.78 | 61.76 | 67.51 | 65.00 | 68.64 | 65.66 | 68.78 | 67.67 |
Cash conversion cycle | days | 41.95 | 38.10 | 141.83 | 115.86 | 119.52 | 108.87 | 101.22 | 114.81 | 121.29 | 121.32 | 113.64 | 106.45 | 94.47 | 84.31 | 87.47 | 85.76 | 86.47 | 86.75 | 77.67 | 74.88 |
June 30, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 57.23 + 40.85 – 56.13
= 41.95
The cash conversion cycle (CCC) of Western Digital Corporation exhibits notable fluctuation over the analyzed period from September 2020 to June 2025. Initially, the CCC was approximately 74.88 days as of September 30, 2020, and experienced a gradual upward trend during the subsequent quarters, reaching a peak of approximately 141.83 days on December 31, 2024. This indicates an increasing duration from the conversion of inventory into receivables and cash, suggesting that the company's operational efficiency in managing inventory, receivables, or payables declined over this period.
From March 2025 onwards, the CCC shows a significant reduction to approximately 38.10 days by March 2025, and further decreases to around 41.95 days by June 2025. This sharp decrease indicates a substantial improvement in working capital management, implying that the company shortened its cycle, possibly through faster inventory turnover, improved receivables collection, or extended payables.
Overall, the trend reflects a period of growing operational cycle length, peaking in late 2024, followed by an impactful decrease in early 2025. The fluctuations may be attributed to changes in inventory management efficiency, credit policies, supplier terms, or strategic operational adjustments aimed at optimizing working capital.
Peer comparison
Jun 30, 2025
See also:
Western Digital Corporation Cash Conversion Cycle (Quarterly Data)