Western Digital Corporation (WDC)
Operating return on assets (Operating ROA)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -317,000 | -1,285,000 | 2,391,000 | 1,220,000 | 335,000 |
| Total assets | US$ in thousands | 24,188,000 | 24,546,000 | 26,259,000 | 26,132,000 | 25,662,000 |
| Operating ROA | -1.31% | -5.24% | 9.11% | 4.67% | 1.31% |
June 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-317,000K ÷ $24,188,000K
= -1.31%
The operating return on assets (ROA) of Western Digital Corporation has fluctuated over the past five years, with the most recent data as of June 30, 2024, showing a negative operating ROA of -1.31%. This indicates that the company generated a negative return from its operating activities relative to its total assets in the most recent period.
Compared to the prior years, the operating ROA has shown a downward trend from 2023 to 2024, with a substantial decrease from -5.24% in 2023 to -1.31% in 2024, suggesting a deteriorating operational efficiency and profitability performance during this period.
In contrast, the company performed relatively well in 2022 with an operating ROA of 9.11%, indicating that for every dollar of assets employed in operations, Western Digital generated a return of 9.11%. This was an improvement compared to the preceding years, including 2021 with an operating ROA of 4.67% and 2020 with an operating ROA of 1.31%.
The negative operating ROA in 2024 raises concerns about the company's ability to effectively utilize its assets to generate profit from its core operations. It may suggest challenges in cost management, sales generation, or operational efficiency that need to be addressed to enhance overall performance and profitability. Further analysis and monitoring of key operational metrics will be crucial to identify and address underlying issues impacting the company's operating ROA.
Peer comparison
Jun 30, 2024