Western Digital Corporation (WDC)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,114,000 | 3,477,000 | 2,291,000 | 1,705,000 | 1,879,000 | 1,894,000 | 2,481,000 | 2,032,000 | 2,023,000 | 2,220,000 | 1,871,000 | 2,049,000 | 2,327,000 | 2,505,000 | 2,531,000 | 3,290,000 | 3,370,000 | 2,734,000 | 2,956,000 | 2,995,000 |
| Short-term investments | US$ in thousands | — | 1,412,000 | — | — | — | — | — | — | — | — | — | — | 3,000 | — | — | 1,646,000 | 1,586,000 | 1,694,000 | 1,858,000 | 1,746,000 |
| 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 |
| Cash ratio | 0.39 | 0.94 | 0.49 | 0.28 | 0.31 | 0.47 | 0.53 | 0.35 | 0.37 | 0.42 | 0.43 | 0.41 | 0.51 | 0.57 | 0.51 | 1.05 | 1.02 | 0.98 | 1.06 | 1.07 |
June 30, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,114,000K
+ $—K)
÷ $5,418,000K
= 0.39
The cash ratio of Western Digital Corporation over the analyzed period demonstrates fluctuations indicative of its short-term liquidity position, specifically its ability to meet current liabilities with cash and cash equivalents.
From September 30, 2020, to September 30, 2021, the cash ratio remains relatively stable, ranging approximately between 1.07 and 1.05, suggesting a consistent and strong liquidity profile during this period, with the company maintaining more than one dollar of cash for every dollar of current liabilities. This indicates a solid capacity to cover immediate obligations using cash resources alone.
Starting from December 31, 2021, the cash ratio exhibits a notable decline, falling sharply to 0.51 and remaining low through various quarters up until the end of 2022. Specifically, the ratio hits lows around 0.41 to 0.43, suggesting a diminished cash buffer relative to short-term liabilities. This decrease could imply that part of the company's cash reserves was utilized for operational needs, debt repayment, or investments, reducing its immediate liquidity cushion.
In 2023, the ratio continues its downward trend, reaching a low of approximately 0.28 on September 30, 2024. Such a level indicates that cash and cash equivalents covered less than a third of current liabilities, highlighting a tighter liquidity position, though not necessarily an immediate solvency concern, depending on the company's other liquid assets and operational cash flow.
Interestingly, starting from late 2024 onward, there is a partial recovery: the ratio increases to approximately 0.49 by December 2024 and further improves to about 0.67 as of March 31, 2025. This upward movement suggests a strengthening of cash reserves relative to current liabilities, which may reflect strategic cash accumulation or operational improvements.
Overall, the trend shows an initial period of strong liquidity, followed by a period of contraction, and a subsequent partial recovery. The fluctuations reflect shifts in cash management, liquidity strategy, and perhaps the company's operational or investment activities over time. The recent increase indicates a potential stabilization or improvement in short-term liquidity position.
Peer comparison
Jun 30, 2025