Western Digital (Western Digital) Inventory Turnover

: 0.76 (As of Dec. 2023)

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Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Western Digital's Cost of Goods Sold for the three months ended in Dec. 2023 was $2,540 Mil. Western Digital's Average Total Inventories for the quarter that ended in Dec. 2023 was $3,357 Mil. Western Digital's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.76.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Western Digital's Days Inventory for the three months ended in Dec. 2023 was 120.58.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Western Digital's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 1.11.

Western Digital Inventory Turnover Historical Data

The historical data trend for Western Digital's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Western Digital Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Inventory Turnover

4.12

4.08

3.71

3.56

2.84

Western Digital Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover																0.68	0.65	0.67	0.74	0.76

Western Digital Inventory Turnover Calculation

Western Digital's Inventory Turnover for the fiscal year that ended in Jun. 2023 is calculated as

	Inventory Turnover (A: Jun. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jun. 2023 )	/ (	(Total Inventories (A: Jun. 2022 )	+	Total Inventories (A: Jun. 2023 ))	/	count )
=	10431	/ (	(3638	+	3698)	/	2 )
=	10431	/	3668
=	2.84

Western Digital's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	2540	/ (	(3497	+	3216)	/	2 )
=	2540	/	3356.5
=	0.76

Western Digital (NAS:WDC) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Western Digital's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	3356.5	/	2540	*	365 / 4
	=	120.58

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Western Digital's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	3356.5	/	3032
	=	1.11

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Western Digital Inventory Turnover Related Terms

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Western Digital (Western Digital) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Western Digital Corp (NAS:WDC) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

WDC:Mexico 1WDC:Italy WDC:Germany WDC:Germany WDC:Germany WDC:Austria

Address

5601 Great Oaks Parkway, San Jose, CA, USA, 95119

Website

https://www.wdc.com

Western Digital is a leading vertically integrated supplier of data storage solutions, spanning both hard disk drives and solid-state drives. In the HDD market it forms a practical duopoly with Seagate, and it is the largest global producer of NAND flash chips for SSDs in a joint venture with competitor Kioxia.

Executives

Robert Soderbery	officer: EVP & GM, Flash Business	C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Gene M. Zamiska	officer: Principal Accounting Officer	C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Reed B Rayman	director	6775 LENOX CENTER COURT, SUITE 400, MEMPHIS TN 38115
David Goeckeler	director, officer: Chief Executive Officer	C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Wissam G Jabre	officer: EVP & CFO	C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Paula A Price	director	ONE CVS DRIVE, WOONSOCKET RI 02895
Miyuki Suzuki	director	C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Thomas Caulfield	director	C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Lori S Sundberg	officer: EVP & Chief Human Res Officer	400 NORTH FIFTH STREET, PHOENIX AZ 85004
Michael Charles Ray	officer: Sr. VP, Gen Cnsl & Secretary	C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Sean Hunkler	officer: EVP, Global Operations	C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Michael D Cordano	officer: President, HGST Subsidiary	C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Stephen D Milligan	officer: Sr. V.P. & CFO	C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Matthew E Massengill	director, officer: Chairman and CEO	C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Robert K Eulau	officer: EVP & CFO	5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119