Western Digital Corporation (WDC)
Cash ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,879,000 | 2,023,000 | 2,327,000 | 3,370,000 | 3,048,000 |
| Short-term investments | US$ in thousands | — | — | 3,000 | 1,586,000 | 1,875,000 |
| Total current liabilities | US$ in thousands | 6,087,000 | 5,434,000 | 5,237,000 | 4,870,000 | 4,406,000 |
| Cash ratio | 0.31 | 0.37 | 0.44 | 1.02 | 1.12 |
June 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,879,000K
+ $—K)
÷ $6,087,000K
= 0.31
The cash ratio of Western Digital Corporation has been on a declining trend over the past five years, indicating a decreasing ability to cover its short-term liabilities solely with its cash and cash equivalents.
As of June 30, 2024, the cash ratio stands at 0.31, down from 0.37 in 2023 and 0.44 in 2022. This decline may suggest potential liquidity challenges or a shift in the company's cash management practices. It is important for stakeholders to monitor this trend closely to assess the company's ability to meet its immediate financial obligations without relying on other current assets.
Comparing the current cash ratio to the ratios in 2021 and 2020, which were 1.02 and 1.12 respectively, highlights a significant drop in the company's short-term liquidity position. This may raise concerns about Western Digital's liquidity management and ability to maintain financial stability in the short term. Further analysis and consideration of the company's overall financial health and operational performance are recommended to gain a comprehensive understanding of the implications of the declining cash ratio.
Peer comparison
Jun 30, 2024