Western Digital Corporation (WDC)

Fixed asset turnover

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Revenue (ttm)	US$ in thousands	13,279,000	14,438,000	15,601,000	14,348,000	13,003,000	11,911,000	11,257,000	11,332,000	12,318,000	14,174,000	15,752,000	17,478,000	18,793,000	19,185,000	18,941,000	18,051,000	16,922,000	16,289,000	16,327,000	16,618,000
Property, plant and equipment	US$ in thousands	—	—	—	—	—	—	—	—	3,620,000	3,668,000	3,688,000	3,718,000	3,670,000	3,488,000	3,367,000	3,260,000	3,188,000	3,061,000	2,918,000	3,125,000
Fixed asset turnover		—	—	—	—	—	—	—	—	3.40	3.86	4.27	4.70	5.12	5.50	5.63	5.54	5.31	5.32	5.60	5.32

June 30, 2025 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $13,279,000K ÷ $—K
= —

The fixed asset turnover ratio for Western Digital Corporation exhibits a noticeable decline over the period from September 2020 through June 2023. Initially, the ratio was approximately 5.32 in September 2020, indicating that the company generated around $5.32 of revenue for every dollar invested in net fixed assets. The ratio increased slightly through the end of 2020 and into early 2021, peaking at approximately 5.63 in December 2021, suggesting improved efficiency in utilizing fixed assets to generate sales during this period.

However, starting from March 2022, a downward trend emerges. The ratio declines from 5.50 in March 2022 to 4.70 in September 2022, then further to 4.27 by the end of 2022. The decline continues into 2023, with the ratio dropping to 3.86 in March 2023 and reaching approximately 3.40 in June 2023. This sustained decrease indicates that the company's revenue generation efficiency relative to its fixed assets has diminished significantly over this time frame.

The consistent downward trend suggests several possible interpretations. It may reflect increased investments in fixed assets that have yet to yield proportional revenue, a shift in operational strategy resulting in less reliance on physical assets to generate sales, or potential reductions in asset efficiency due to technological obsolescence or asset underutilization. The absence of data beyond June 2023 means that further trends cannot be assessed; however, the clear decline over this period underscores a reduction in asset utilization efficiency that warrants ongoing monitoring and analysis.