Balance Sheet: Assets
The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.
Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.
Western Digital Corp., consolidated balance sheet: assets
US$ in millions
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-07-01), 10-K (reporting date: 2021-07-02), 10-K (reporting date: 2020-07-03), 10-K (reporting date: 2019-06-28), 10-K (reporting date: 2018-06-29).
The analysis of the financial data reveals several key trends and fluctuations across the years under review.
- Liquidity Position
- Cash and cash equivalents show a clear declining trend from 2018 to 2023, decreasing from $5,005 million to $2,023 million. This indicates a reduction in readily available liquid assets. Accounts receivable, after an initial decline in 2019, increased notably in 2020 and 2022, peaking at $2,804 million before falling again in 2023. This could reflect variability in sales collections or credit policies. Inventories have generally increased over the period, from $2,944 million to $3,698 million, signaling either stock buildup or changes in inventory management. Other current assets have fluctuated but generally remain around the mid-hundreds, suggesting relative stability.
- Total Current Assets
- Current assets decreased sharply from $10,638 million in 2018 to $7,886 million in 2023, with a notable trough in 2019 at $8,477 million. The overall decline indicates a reduction in assets that are expected to be converted into cash within a year, aligning with the cash and receivables trends.
- Fixed and Long-Term Asset Base
- Property, plant, and equipment net value slightly declined from $3,095 million in 2018 to $3,620 million in 2023, exhibiting modest growth with some fluctuations. Investments related to Flash Ventures decreased consistently from $2,105 million to $1,297 million, implying a reduction in investment stakes or asset sales. Goodwill remained relatively stable around the $10,000 million mark, suggesting little impairment or acquisition activity affecting this item. Other intangible assets, net, showed a steep decline from $2,680 million to $80 million, which may indicate amortization, impairment, or divestment of intangible assets.
- Other Non-Current Assets and Total Non-Current Assets
- Other non-current assets increased consistently from $642 million to $1,509 million, indicating growth in longer-term holdings or deferred items. Despite some variability, non-current assets overall declined from $18,597 million to $16,543 million, reflecting reductions in the asset base outside of current assets.
- Total Assets
- Total assets decreased from $29,235 million in 2018 to $24,429 million in 2023. The decline reflects the reductions seen in both current and non-current asset categories. The peak in total assets occurred in 2018, with a steady downward trend thereafter, suggesting possible asset disposals, depreciation effects, or changes in business scale.
Overall, the data indicate tightening liquidity, a shrinking asset base, and significant reductions in intangible assets. These trends may imply strategic shifts, asset optimization efforts, or responses to market conditions affecting the company’s operational and investment profile.