Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Based on: 10-Q (reporting date: 2023-12-29), 10-Q (reporting date: 2023-09-29), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-30), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-K (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-Q (reporting date: 2021-01-01), 10-Q (reporting date: 2020-10-02), 10-K (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03), 10-Q (reporting date: 2020-01-03), 10-Q (reporting date: 2019-10-04), 10-K (reporting date: 2019-06-28), 10-Q (reporting date: 2019-03-29), 10-Q (reporting date: 2018-12-28), 10-Q (reporting date: 2018-09-28), 10-K (reporting date: 2018-06-29), 10-Q (reporting date: 2018-03-30), 10-Q (reporting date: 2017-12-29), 10-Q (reporting date: 2017-09-29).
- Current Ratio
- The current ratio exhibited a downward trend overall from September 2017 to December 2023, falling from 2.64 to 1.67. Initially, the ratio declined steadily from 2.64 in late 2017 through mid-2019, reaching lows around 1.91 in early 2020. A brief recovery to above 2.0 was observed throughout 2020 and early 2021, followed again by a gradual decline below 2.0 from mid-2021 onward. The lowest points occurred in late 2023, where the ratio reached values as low as 1.31. This suggests a systematic reduction in short-term liquidity over the analyzed period, indicating a decreasing buffer to cover current liabilities with current assets.
- Quick Ratio
- The quick ratio also displayed a general declining pattern over the examined timeline, starting at 2.01 in September 2017 and dropping to 0.85 by December 2023. The early years featured a steady decrease with minor fluctuations until around mid-2019, where it stabilized near 1.1. A modest recovery took place during 2020, but from 2021 onward, the quick ratio experienced further decline, dipping below 1.0 in late 2021 and continuing to decrease through 2023. The subdued quick ratio values, particularly below 1.0 from 2021, indicate a weakening ability to settle immediate liabilities without relying on inventory liquidation.
- Cash Ratio
- A downward trajectory was observed in the cash ratio moving from 1.54 in September 2017 to 0.53 in December 2023. The ratio decreased steadily during the first years, with a notable low around 0.66 by mid-2020, briefly stabilizing with minor increases and decreases through early 2021. The last two years show a consistent decline, falling below 0.5 at several points between 2021 and 2023. This pattern reflects a diminishing reliance on highly liquid cash and cash equivalents to meet short-term obligations, implying tighter liquidity conditions and potential increased reliance on other current assets or financing.
- Overall Liquidity Insights
- The collective downward trends across the current, quick, and cash ratios suggest a gradual erosion of liquidity over the analyzed period. While the current ratio remained above 1.0, indicating the capacity to cover current liabilities with current assets, the declines imply diminishing short-term financial flexibility. The decrease in quick and cash ratios, especially falling below 1.0 and 0.5 respectively in recent years, underlines a reduced cushion of liquid assets, signaling closer monitoring of working capital management may be warranted. The patterns could reflect strategic shifts in asset composition, changes in inventory levels, or evolving short-term obligations.
Current Ratio
Dec 29, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 30, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | Dec 31, 2021 | Oct 1, 2021 | Jul 2, 2021 | Apr 2, 2021 | Jan 1, 2021 | Oct 2, 2020 | Jul 3, 2020 | Apr 3, 2020 | Jan 3, 2020 | Oct 4, 2019 | Jun 28, 2019 | Mar 29, 2019 | Dec 28, 2018 | Sep 28, 2018 | Jun 29, 2018 | Mar 30, 2018 | Dec 29, 2017 | Sep 29, 2017 | |||||||||
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Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||||||||||
Liquidity Ratio | ||||||||||||||||||||||||||||||||||
Current ratio1 | ||||||||||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||||||||||
Current Ratio, Competitors2 | ||||||||||||||||||||||||||||||||||
Apple Inc. | ||||||||||||||||||||||||||||||||||
Arista Networks Inc. | ||||||||||||||||||||||||||||||||||
Cisco Systems Inc. | ||||||||||||||||||||||||||||||||||
Dell Technologies Inc. | ||||||||||||||||||||||||||||||||||
Super Micro Computer Inc. |
Based on: 10-Q (reporting date: 2023-12-29), 10-Q (reporting date: 2023-09-29), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-30), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-K (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-Q (reporting date: 2021-01-01), 10-Q (reporting date: 2020-10-02), 10-K (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03), 10-Q (reporting date: 2020-01-03), 10-Q (reporting date: 2019-10-04), 10-K (reporting date: 2019-06-28), 10-Q (reporting date: 2019-03-29), 10-Q (reporting date: 2018-12-28), 10-Q (reporting date: 2018-09-28), 10-K (reporting date: 2018-06-29), 10-Q (reporting date: 2018-03-30), 10-Q (reporting date: 2017-12-29), 10-Q (reporting date: 2017-09-29).
1 Q2 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets have exhibited a generally declining trend over the entire period. Starting at $11,820 million in September 2017, the value decreased to a low point around $7,577 million by September 2023, with some fluctuations along the way. Notable dips occurred in late 2019 and mid-2023. There are intermittent periods of slight recovery, such as between April 2020 and October 2021, but the overall trajectory remains downward.
- Current Liabilities
- Current liabilities have shown moderate variability without a clear consistent trend. Beginning at approximately $4,469 million in September 2017, liabilities decreased somewhat until mid-2019 before increasing significantly through late 2022, reaching a high of $5,792 million in September 2023. However, the most recent quarter shows a decrease to $4,693 million in December 2023, indicating some recent reduction in short-term obligations.
- Current Ratio
- The current ratio, which measures liquidity, has declined steadily from 2.64 in September 2017 to lower levels around 1.3-1.6 in late 2023. This decrease suggests a worsening liquidity position over time, with the ratio dropping below the commonly accepted threshold of 2.0 for much of 2022 and 2023. Occasional improvements occurred, such as a brief rise in mid-2020 and late 2021, but these were not sustained. The decline in the current ratio primarily reflects the faster decrease in current assets relative to current liabilities.
Quick Ratio
Dec 29, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 30, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | Dec 31, 2021 | Oct 1, 2021 | Jul 2, 2021 | Apr 2, 2021 | Jan 1, 2021 | Oct 2, 2020 | Jul 3, 2020 | Apr 3, 2020 | Jan 3, 2020 | Oct 4, 2019 | Jun 28, 2019 | Mar 29, 2019 | Dec 28, 2018 | Sep 28, 2018 | Jun 29, 2018 | Mar 30, 2018 | Dec 29, 2017 | Sep 29, 2017 | |||||||||
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Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||||||||
Accounts receivable, net | ||||||||||||||||||||||||||||||||||
Total quick assets | ||||||||||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||||||||||
Liquidity Ratio | ||||||||||||||||||||||||||||||||||
Quick ratio1 | ||||||||||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||||||||||
Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||||||||
Apple Inc. | ||||||||||||||||||||||||||||||||||
Arista Networks Inc. | ||||||||||||||||||||||||||||||||||
Cisco Systems Inc. | ||||||||||||||||||||||||||||||||||
Dell Technologies Inc. | ||||||||||||||||||||||||||||||||||
Super Micro Computer Inc. |
Based on: 10-Q (reporting date: 2023-12-29), 10-Q (reporting date: 2023-09-29), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-30), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-K (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-Q (reporting date: 2021-01-01), 10-Q (reporting date: 2020-10-02), 10-K (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03), 10-Q (reporting date: 2020-01-03), 10-Q (reporting date: 2019-10-04), 10-K (reporting date: 2019-06-28), 10-Q (reporting date: 2019-03-29), 10-Q (reporting date: 2018-12-28), 10-Q (reporting date: 2018-09-28), 10-K (reporting date: 2018-06-29), 10-Q (reporting date: 2018-03-30), 10-Q (reporting date: 2017-12-29), 10-Q (reporting date: 2017-09-29).
1 Q2 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends in the company's short-term liquidity position over the analyzed quarters.
- Total quick assets
- The total quick assets show an overall declining trend from the beginning to the end of the period. Initially, quick assets stood at 8,987 million US dollars, then experienced a gradual decrease with minor fluctuations, reaching a low point near 3,483 million in the third quarter of 2022. A modest recovery is observed toward the last quarter, ending at approximately 4,004 million. This indicates a consistent reduction in liquid assets available for settling immediate obligations over the long term.
- Current liabilities
- Current liabilities started at 4,469 million US dollars, fluctuated moderately, and showed some peaks, particularly towards 2022 and early 2023, with values reaching approximately 5,792 million before returning somewhat lower to 4,693 million at the end of the period. The fluctuations suggest varying amounts of short-term obligations that the company needed to address, with a tendency toward an increase in liabilities around the middle of the timeframe.
- Quick ratio
- The quick ratio, representing the company's ability to cover current liabilities with quick assets, declines steadily from 2.01 at the start to a trough of 0.60 in the third quarter of 2023. This gradual reduction reflects weakening short-term liquidity and a diminishing buffer to meet immediate financial obligations without relying on inventory sales. Notably, the ratio briefly recovers from 0.60 to 0.85 at the very end, indicating a slight improvement in liquidity but still significantly lower than initial levels.
In summary, the data highlights a contraction in liquid assets coupled with a general increase or volatility in current liabilities, culminating in a deteriorating quick ratio. This pattern signals increasing pressure on the company's ability to meet short-term liabilities solely through its most liquid assets. The slight rebound in total quick assets and quick ratio near the end suggests some stabilization, but liquidity remains considerably weaker compared to earlier periods.
Cash Ratio
Dec 29, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 30, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | Dec 31, 2021 | Oct 1, 2021 | Jul 2, 2021 | Apr 2, 2021 | Jan 1, 2021 | Oct 2, 2020 | Jul 3, 2020 | Apr 3, 2020 | Jan 3, 2020 | Oct 4, 2019 | Jun 28, 2019 | Mar 29, 2019 | Dec 28, 2018 | Sep 28, 2018 | Jun 29, 2018 | Mar 30, 2018 | Dec 29, 2017 | Sep 29, 2017 | |||||||||
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Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||||||||
Total cash assets | ||||||||||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||||||||||
Liquidity Ratio | ||||||||||||||||||||||||||||||||||
Cash ratio1 | ||||||||||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||||||||||
Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||||||||
Apple Inc. | ||||||||||||||||||||||||||||||||||
Arista Networks Inc. | ||||||||||||||||||||||||||||||||||
Cisco Systems Inc. | ||||||||||||||||||||||||||||||||||
Dell Technologies Inc. | ||||||||||||||||||||||||||||||||||
Super Micro Computer Inc. |
Based on: 10-Q (reporting date: 2023-12-29), 10-Q (reporting date: 2023-09-29), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-30), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-K (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-Q (reporting date: 2021-01-01), 10-Q (reporting date: 2020-10-02), 10-K (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03), 10-Q (reporting date: 2020-01-03), 10-Q (reporting date: 2019-10-04), 10-K (reporting date: 2019-06-28), 10-Q (reporting date: 2019-03-29), 10-Q (reporting date: 2018-12-28), 10-Q (reporting date: 2018-09-28), 10-K (reporting date: 2018-06-29), 10-Q (reporting date: 2018-03-30), 10-Q (reporting date: 2017-12-29), 10-Q (reporting date: 2017-09-29).
1 Q2 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the liquidity and short-term financial position over the observed periods.
- Total Cash Assets
- The total cash assets show a general downward trend from September 2017 through December 2023. Initially, cash assets stood at 6,886 million USD in September 2017 and experienced a steady decline, reaching a low point around the first quarters of 2023 with values near 2,000 million USD. There are minor fluctuations, including slight increases in mid-2020 and late 2023, but the overall trajectory reflects a substantial reduction in cash reserves over the period.
- Current Liabilities
- Current liabilities remained relatively stable initially, fluctuating around the 4,400 to 4,800 million USD range from 2017 through 2021. However, beginning in 2022, there is a marked increase in short-term obligations, peaking at 5,792 million USD in September 2023 before a slight decrease to 4,693 million USD in December 2023. This indicates an increasing burden of short-term liabilities in the latter part of the observation period.
- Cash Ratio
- The cash ratio, a measure of the ability to cover current liabilities with cash and cash equivalents, declines steadily from 1.54 at the end of September 2017 to a low of approximately 0.35 by late 2023. This trend reflects decreasing cash coverage relative to current liabilities, suggesting a reduction in short-term liquidity. Notably, the ratio dips below 1.0 in late 2017 and remains under that threshold throughout the subsequent years, highlighting increased reliance on other forms of liquidity or financing to meet obligations.
Overall, the data suggests a significant decrease in available cash assets accompanied by rising current liabilities towards the end of the period, resulting in a noticeable decline in liquidity as captured by the cash ratio. This pattern indicates increased pressure on the company’s short-term financial flexibility and may necessitate strategies to improve cash reserves or manage liabilities more effectively.