Western Digital Corporation (WDC)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 14,002,000 | 24,188,000 | 24,429,000 | 26,259,000 | 26,132,000 |
| Operating ROA | 15.35% | -1.31% | -5.26% | 9.11% | 4.67% |
June 30, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $2,149,000K ÷ $14,002,000K
= 15.35%
The operating return on assets (ROA) of Western Digital Corporation has exhibited significant fluctuations over the analyzed period from June 30, 2021, to June 30, 2025.
As of June 30, 2021, the company reported an operating ROA of 4.67%, indicating a modest level of operating efficiency relative to its assets. This figure increased substantially by June 30, 2022, reaching 9.11%, reflecting improved operational performance and higher profitability generated from its asset base. However, by June 30, 2023, the operating ROA declined markedly to -5.26%, transitioning into negative territory, which suggests the company experienced operational challenges or decreased profitability relative to its assets during that period.
The decline persisted into June 30, 2024, with the operating ROA improving slightly to -1.31%, but remaining negative. This indicates that, although there was some recovery, the company continued to face difficulties in generating positive operating returns relative to its assets.
By June 30, 2025, the operating ROA exhibited a significant turnaround, rising to 15.35%. This sharp increase to a positive and robust level highlights a substantial improvement in operational performance, likely driven by higher revenues, cost efficiencies, or both. It demonstrates that the company successfully capitalized on efficiencies or market opportunities, substantially enhancing its ability to generate operating income from its assets.
Overall, the trend illustrates a period of recovery and operational improvement culminating in a strong positive return in 2025, following a dip into negative territory in the previous two years.
Peer comparison
Jun 30, 2025