Western Digital Corporation (WDC)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 3,034,000 | 2,570,000 | 2,083,000 | 1,021,000 | -317,000 | -1,183,000 | -1,888,000 | -1,923,000 | -1,169,000 | 43,000 | 799,000 | 1,771,000 | 2,391,000 | 2,504,000 | 2,497,000 | 1,928,000 | 1,220,000 | 806,000 | 642,000 | 534,000 |
| Total assets | US$ in thousands | 14,002,000 | 16,368,000 | 25,456,000 | 24,771,000 | 24,188,000 | 23,801,000 | 24,385,000 | 24,001,000 | 24,429,000 | 25,151,000 | 25,047,000 | 25,686,000 | 26,259,000 | 25,699,000 | 26,025,000 | 26,391,000 | 26,132,000 | 25,409,000 | 25,552,000 | 25,402,000 |
| Operating ROA | 21.67% | 15.70% | 8.18% | 4.12% | -1.31% | -4.97% | -7.74% | -8.01% | -4.79% | 0.17% | 3.19% | 6.89% | 9.11% | 9.74% | 9.59% | 7.31% | 4.67% | 3.17% | 2.51% | 2.10% |
June 30, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $3,034,000K ÷ $14,002,000K
= 21.67%
The operating return on assets (ROA) for Western Digital Corporation exhibits significant fluctuations over the analyzed period, reflecting the company's evolving operational efficiency and profitability relative to its asset base.
From September 30, 2020, with an operating ROA of approximately 2.10%, the metric demonstrates a consistent upward trajectory through 2021, reaching a peak of 9.74% as of March 31, 2022. This upward trend indicates improved operational performance and effective utilization of assets during this period, likely driven by favorable market conditions, product demand, or operational efficiencies.
However, starting in the second quarter of 2022, the operating ROA begins a declining trend, moving from 9.11% in June 2022 to negative territory by September 2022 (-8.01%). The negative figures persist through subsequent periods, reaching as low as -7.74% on December 31, 2023, and maintaining negative values into March and June 2024. This shift signifies that the company's operations have become less efficient, and its income from operations is insufficient to cover its assets' costs or depreciation, likely indicating challenges such as market headwinds, product obsolescence, or restructuring costs.
Interestingly, the data from September 2024 onward reveals an inflection point, with the operating ROA turning positive again—4.12% as of September 30, 2024. This upward correction continues into December 2024 with 8.18%, and markedly accelerates into 2025, reaching 15.70% by March 2025 and an estimated 21.67% by June 2025. These increases suggest a substantial improvement in operational efficiency and profitability, potentially attributable to product innovations, operational restructuring, market recovery, or favorable pricing strategies.
Overall, the trend of Western Digital’s operating ROA reflects periods of growth, significant decline into negative territory, and a subsequent recovery, indicating the company's cyclical operational performance and its responsiveness to market and internal factors influencing asset productivity.
Peer comparison
Jun 30, 2025