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	50.58	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	51.68	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 + 50.58 – 56.13
= 51.68

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.