Western Digital Corporation (WDC)

Liquidity ratios

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 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019
Current ratio 1.32 1.86 1.67 1.31 1.45 1.61 1.91 1.83 1.81 2.09 1.93 2.09 2.00 2.01 2.01 2.03 2.05 1.91 1.92 1.98
Quick ratio 0.67 0.91 0.85 0.60 0.67 0.72 0.86 0.90 0.98 0.57 1.07 1.05 1.48 0.98 1.06 1.07 1.12 0.66 0.70 0.76
Cash ratio 0.31 0.47 0.53 0.35 0.37 0.42 0.43 0.41 0.44 0.57 0.51 1.05 1.02 0.98 1.06 1.07 1.12 0.66 0.70 0.76

Western Digital Corporation's liquidity ratios show fluctuations over the past few quarters. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has ranged from 1.31 to 2.09. The highest current ratio was recorded in March 2022, indicating a stronger liquidity position, while the lowest was in September 2023, suggesting a tighter ability to cover short-term obligations.

The quick ratio, a more stringent measure of liquidity than the current ratio, considers only the most liquid assets. Western Digital Corporation's quick ratio has varied from 0.57 to 1.48, with the lowest ratio in March 2022 and the highest in December 2022. The quick ratio shows the company's ability to meet immediate short-term obligations without relying on inventory sales.

The cash ratio, which provides an even stricter assessment of liquidity by focusing solely on cash and cash equivalents, has fluctuated between 0.31 and 1.12. The cash ratio hit its lowest point in June 2020 and peaked in December 2022. This ratio indicates the company's ability to cover current liabilities using the most liquid assets available.

Overall, Western Digital Corporation's liquidity ratios have shown variability, with strengths and weaknesses in different periods. It is essential for the company to maintain a balance between current assets and short-term obligations to ensure financial stability and meet its operational needs.

See also:

Western Digital Corporation Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019
Cash conversion cycle days 168.76 160.76 153.53 158.17 162.95 119.97 116.48 108.96 99.01 44.75 93.99 41.62 92.92 48.53 41.97 35.13 27.50 31.79 33.62 38.18

The cash conversion cycle for Western Digital Corporation has fluctuated over the past few quarters. The trend indicates that the company's efficiency in managing its cash flow from the purchase of inventory to the collection of receivables and payment of payables has varied.

For the most recent quarter ending June 30, 2024, the cash conversion cycle was 168.76 days, indicating that it took the company approximately 169 days to convert resource inputs into cash flows. This suggests a relatively slower conversion process compared to the previous quarter, where the cycle was 160.76 days.

The peak in the cycle over the past several quarters occurred in March 2022, where it reached 93.99 days, indicating a longer period required to convert resources into cash. Following this peak, there was a notable decline in the cycle, reaching a low of 27.50 days in September 2020 before increasing again.

Overall, fluctuations in the cash conversion cycle can provide insights into the company's operational efficiency, inventory management, and collection of receivables. A shorter cycle indicates that the company is able to generate cash more quickly, while a longer cycle may suggest potential inefficiencies in working capital management. It is important for stakeholders to monitor these trends to assess the company's financial health and performance.