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Western Digital Corp  (NAS:WDC) Total Inventories: $3,440 Mil (As of Mar. 2019)

Western Digital Corp's total inventories for the quarter that ended in Mar. 2019 was $3,440 Mil. Western Digital Corp's average total inventories from the quarter that ended in Dec. 2018 to the quarter that ended in Mar. 2019 was $3,434 Mil.

In Ben Graham's calculation of liquidation value, inventory is only considered worth half of its book value. Western Digital Corp's liquidation value for the quarter that ended in Mar. 2019 was $-10,380 Mil.

Inventory can be measured by days sales of inventory (DSI). Western Digital Corp's days sales of inventory (DSI) for the three months ended in Mar. 2019 was 85.28.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Western Digital Corp's Days Inventory for the three months ended in Mar. 2019 was 101.23.

Inventory Turnover measures how fast the company turns over its inventory within a year. Western Digital Corp's Inventory Turnover for the quarter that ended in Mar. 2019 was 0.90.

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 Corp's Inventory-to-Revenue for the quarter that ended in Mar. 2019 was 0.93.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Western Digital Corp Annual Data

Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18
Total Inventories Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,226.00 1,368.00 2,129.00 2,341.00 2,944.00

Western Digital Corp Quarterly Data

Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
Total Inventories Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2,670.00 2,944.00 3,119.00 3,427.00 3,440.00

Calculation

Total Inventories includes the raw materials, work-in-process goods and completely finished goods of a company. It is a portion of a company's current assets.


Explanation

Inventory control is an important part of business operation. If a company does not have enough inventory, it may not be able to meet customers' required delivery time. If it has too much inventory, the cost of holding the inventory can be high.

1. In Ben Graham's calculation of liquidation value, inventory is only considered worth half of its book value.

Western Digital Corp's liquidation value for the quarter that ended in Mar. 2019 is

Liquidation value (Q: Mar. 2019 )
=Cash, Cash Equivalents, Marketable Securities-Total Liabilities+(0.75 * Accounts Receivable)+(0.5 * Total Inventories)
=3682-16699+0.75 * 1223+0.5 * 3440
=-10,380

2. Inventory can be measured by Days Sales of Inventory (DSI).

Western Digital Corp's Days Sales of Inventory for the three months ended in Mar. 2019 is

Days Sales of Inventory (DSI)
=Total Inventories (Q: Mar. 2019 )/Revenue (Q: Mar. 2019 )*Days in Period
=3433.5/3674*365 / 4
=85.28

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

Western Digital Corp's Days Inventory for the three months ended in Mar. 2019 is calculated as:

Days Inventory=Total Inventories (Q: Mar. 2019 )/Cost of Goods Sold (Q: Mar. 2019 )*Days in Period
=3433.5/3095*365 / 4
=101.23

4. Inventory Turnover measures how fast the company turns over its inventory within a year.

Western Digital Corp's Inventory Turnover for the quarter that ended in Mar. 2019 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Mar. 2019 ) / Total Inventories (Q: Mar. 2019 )
=3095 / 3433.5
=0.90

5. 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 Corp's Inventory to Revenue for the quarter that ended in Mar. 2019 is calculated as

Inventory-to-Revenue=Total Inventories (Q: Mar. 2019 ) / Revenue (Q: Mar. 2019 )
=3433.5 / 3674
=0.93

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Be Aware

Manufacturers with durable competitive advantages have the advantage that the products they sell do not change, and therefore will never become obsolete. Buffett likes this advantage.

When identifying manufacturers with durable competitive advantage, look for inventory and net earnings that rise correspondingly. This indicates that the company is finding profitable ways to increase sales which called for an increase in inventory.

Manufacturers with inventories that spike up and down are indicative of competitive industries subject to boom and bust.


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