Capital Allocation Framework
15
WESTERN DIGITAL CONFIDENTIAL
Quarterly Fact Sheet (continued)
FOOTNOTES
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FORMULAS
Days Sales Outstanding (DSO) = Accounts Receivable / (Revenue / # of days in quarter)
Days Inventory Outstanding (DIO) = Inventories / (Cost of Revenue / # of days in quarter)
Days Payables Outstanding (DPO) = Accounts Payable (including Accounts Payable to Related Parties) / (Cost of Revenue
1 # of days in quarter)
Cash Conversion Cycle = DSO + DIO - DPO
FOOTNOTES
1.
2.
Cloud is primarily comprised of products sold for public or private cloud environments and enterprise customers. Client is primarily comprised of products sold directly to OEMs or via distribution. Consumer is primarily comprised of retail and other
end-user products.
Total gross margin for segments is a Non-GAAP financial measure, which is also referred to herein as Non-GAAP gross margin. See Appendix for GAAP to Non-GAAP Reconciliations and Supplemental Operating Segment Results for further
details.
Excludes licensing, royalties, and non-memory products.
3.
4.
HDD Unit volume excludes data storage systems and components.
5.
6.
HDD ASP is calculated by dividing HDD revenue by HDD units. Data storage systems are excluded from this calculation, as data storage systems ASP is measured on a per system basis rather than a per drive basis.
Free cash flow is defined as cash flows provided by operating activities less purchases of property, plant and equipment, net, plant and equipment, and the activity related to Flash Ventures, net. The company considers free cash flow generated
in any period to be a useful indicator of cash that is available for strategic opportunities including, among others, investing in the company's business, making strategic acquisitions, repaying debt and strengthening the balance sheet.View entire presentation