Western Digital Corporation (WDC)

Operating profit margin

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Operating income	US$ in thousands	2,149,000	-317,000	-1,285,000	2,391,000	1,220,000
Revenue	US$ in thousands	9,520,000	13,003,000	12,318,000	18,793,000	16,922,000
Operating profit margin		22.57%	-2.44%	-10.43%	12.72%	7.21%

June 30, 2025 calculation

Operating profit margin = Operating income ÷ Revenue
= $2,149,000K ÷ $9,520,000K
= 22.57%

The analysis of Western Digital Corporation's operating profit margin over the specified period reveals notable fluctuations indicative of underlying operational and market dynamics. As of June 30, 2021, the company maintained a relatively moderate operating profit margin of 7.21%, reflecting controlled operational costs relative to revenue. This margin improved significantly by June 30, 2022, reaching 12.72%, suggesting enhanced operational efficiency or increased revenue contributions relative to expenses.

However, by June 30, 2023, the operating profit margin experienced a substantial decline to -10.43%, transitioning into operating losses. This negative turnaround suggests considerable challenges, which may include increased costs, pricing pressures, product mix shifts, or other operational inefficiencies. Although there was a partial recovery by June 30, 2024, with the margin improving to -2.44%, it still remained in a negative territory, indicating ongoing operational difficulties.

The forecasted data for June 30, 2025, indicates a marked turnaround with an expected operating profit margin of 22.57%. This projected substantial improvement points to a potential strategic adjustment, cost management initiatives, or revenue growth that could significantly enhance profitability. Overall, the company's operating profit margin demonstrates volatility over the analyzed period, punctuated by periods of profitability, sharp declines into losses, and an optimistic anticipation of future recovery and growth.