Western Digital Corporation (WDC)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,856,000 | 8,086,000 | 9,372,000 | 8,942,000 | 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 |
| 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 |
| Current ratio | 1.08 | 1.56 | 1.99 | 1.47 | 1.32 | 1.86 | 1.67 | 1.31 | 1.45 | 1.61 | 1.91 | 1.83 | 2.07 | 2.09 | 1.93 | 2.09 | 2.00 | 2.01 | 2.01 | 2.03 |
June 30, 2025 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,856,000K ÷ $5,418,000K
= 1.08
The current ratio of Western Digital Corporation over the analyzed period demonstrates notable fluctuations, reflecting changes in its short-term liquidity position. Beginning in September 2020 with a current ratio of 2.03, the company maintained a relatively stable liquidity cushion, with ratios predominantly in the range of approximately 2.00 to 2.09 during the first year. This indicates a solid ability to cover current liabilities with current assets during that period.
Subsequently, a gradual decline is observed, with the ratio decreasing to 1.83 by September 2022. This downward trend suggests a diminishing excess of current assets relative to current liabilities, potentially indicating either a reduction in current asset holdings or an increase in current liabilities. Despite this decline, the ratio remained above 1.80, suggesting that the company generally maintained sufficient liquidity to meet short-term obligations during this period.
From late 2022 onward, the current ratio exhibits more significant volatility and a consistent downward movement. Notably, the ratio dips below 1.5 in the first half of 2023, reaching a low of approximately 1.08 in June 2025, indicating a tightening of liquidity margins and raising concerns about the company's capacity to readily meet short-term liabilities without additional liquidity sources.
In the most recent periods, the ratio exhibits some recovery, reaching 1.99 in December 2024 before declining slightly to 1.56 in March 2025 and further down to 1.08 in June 2025. These fluctuations highlight variability in the company's liquidity management, with periods of strengthening and weakening liquidity positions.
Overall, the trend reveals a gradual erosion of the company's liquidity buffer over time, transitioning from a comfortable position above 2.00 to precariously closer to 1.08, which may indicate increasing liquidity risks if this trend persists. Maintaining a current ratio substantially above 1 is generally viewed positively, but sustained levels approaching or below 1 can signal potential liquidity concerns.
Peer comparison
Jun 30, 2025