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# Western Digital Inventory Turnover

: 1.03 (As of Dec. 2019)
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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. 2019 was \$3,299 Mil. Western Digital's Total Inventories for the quarter that ended in Dec. 2019 was \$3,205 Mil. Western Digital's Inventory Turnover for the quarter that ended in Dec. 2019 was 1.03.

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. 2019 was 88.64.

Total Inventories can be measured by Days Sales of Inventory (DSI). Western Digital's days sales of inventory (DSI) for the three months ended in Dec. 2019 was 69.06.

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. 2019 was 0.76.

## Western Digital Inventory Turnover Historical Data

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

 Western Digital Annual Data Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Inventory Turnover     7.98 5.47 5.83 4.90 4.12

## Western Digital Inventory Turnover Calculation

Western Digital's Inventory Turnover for the fiscal year that ended in Jun. 2019 is calculated as

 Inventory Turnover (A: Jun. 2019 ) = Cost of Goods Sold / Total Inventories = Cost of Goods Sold (A: Jun. 2019 ) / ( (Total Inventories (A: Jun. 2018 ) + Total Inventories (A: Jun. 2019 )) / count ) = 12817 / ( (2944 + 3283) / 2 ) = 12817 / 3113.5 = 4.12

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

 Inventory Turnover (Q: Dec. 2019 ) = Cost of Goods Sold / Total Inventories = Cost of Goods Sold (Q: Dec. 2019 ) / ( (Total Inventories (Q: Sep. 2019 ) + Total Inventories (Q: Dec. 2019 )) / count ) = 3299 / ( (3287 + 3122) / 2 ) = 3299 / 3204.5 = 1.03

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

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. 2019 is calculated as:

 Days Inventory = Total Inventories (Q: Dec. 2019 ) / Cost of Goods Sold (Q: Dec. 2019 ) * Days in Period = 3204.5 / 3299 * 365 / 4 = 88.64

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

Western Digital's Days Sales of Inventory for the three months ended in Dec. 2019 is calculated as:

 Days Sales of Inventory (DSI) = Total Inventories (Q: Dec. 2019 ) / Revenue (Q: Dec. 2019 ) * Days in Period = 3204.5 / 4234 * 365 / 4 = 69.06

3. 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. 2019 is calculated as

 Inventory-to-Revenue = Total Inventories (Q: Dec. 2019 ) / Revenue (Q: Dec. 2019 ) = 3204.5 / 4234 = 0.76

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

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 Headlines

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