Western Digital Corporation (WDC)

Total asset turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	13,090,000	12,013,000	18,514,000	16,666,000	16,330,000
Total assets	US$ in thousands	24,188,000	24,546,000	26,259,000	26,132,000	25,662,000
Total asset turnover		0.54	0.49	0.71	0.64	0.64

June 30, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $13,090,000K ÷ $24,188,000K
= 0.54

The total asset turnover ratio measures a company's ability to generate revenue from its assets. A higher ratio indicates more efficient asset utilization. Western Digital Corporation's total asset turnover has varied over the past five years.

In 2024, the total asset turnover ratio was 0.54, reflecting a decrease compared to the previous year. This suggests that the company generated $0.54 in revenue for every $1 of total assets during the year. The reduction in the ratio could imply a decline in operational efficiency or a decrease in sales relative to total assets.

In 2023, the total asset turnover ratio was 0.49, showing a lower efficiency in generating revenue from assets compared to the prior year. The decline could indicate challenges in effectively utilizing assets to drive revenue growth.

In 2022, the total asset turnover ratio was 0.71, representing an improvement in asset utilization efficiency. The increase suggests that the company generated more revenue from its assets during the year, potentially indicating better operational performance or higher sales relative to total assets.

In 2021 and 2020, the total asset turnover ratios were consistent at 0.64. This stability indicates a relatively steady ability for the company to generate revenue from its assets over these two years.

Overall, Western Digital Corporation's total asset turnover has shown fluctuations over the past five years, signaling changes in the company's efficiency in utilizing assets to generate revenue. Analyzing trends in this ratio can provide insights into the company's operational performance and effectiveness in managing its asset base.