Western Digital Corporation (WDC)
Operating return on assets (Operating ROA)
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -317,000 | -1,183,000 | -1,928,000 | -2,039,000 | -1,285,000 | -73,000 | 723,000 | 1,771,000 | 2,391,000 | 2,504,000 | 2,497,000 | 1,928,000 | 1,220,000 | 806,000 | 642,000 | 534,000 | 335,000 | -307,000 | -854,000 | -728,000 |
| Total assets | US$ in thousands | 24,188,000 | 23,801,000 | 24,385,000 | 24,001,000 | 24,546,000 | 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 | 25,662,000 | 25,509,000 | 25,860,000 | 26,280,000 |
| Operating ROA | -1.31% | -4.97% | -7.91% | -8.50% | -5.24% | -0.29% | 2.89% | 6.89% | 9.11% | 9.74% | 9.59% | 7.31% | 4.67% | 3.17% | 2.51% | 2.10% | 1.31% | -1.20% | -3.30% | -2.77% |
June 30, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-317,000K ÷ $24,188,000K
= -1.31%
The operating return on assets (operating ROA) of Western Digital Corporation has shown fluctuating trends over the past several quarters. The ratio indicates the company's ability to generate profits from its assets used in operations.
From Dec 2019 to Jun 2020, the operating ROA was negative, indicating that the company's operating profits were not sufficient to cover its assets' costs during this period. However, there was a gradual improvement in the ratio from Jun 2020 to Jun 2021, reaching a peak of 9.74% in Mar 2022. This implies that the company was able to generate higher operating profits relative to its assets during this time frame.
Subsequently, there was a decline in the operating ROA from Mar 2022 to Dec 2023, with the ratio turning negative in Sep 2023. This downward trend indicates challenges in generating sufficient operating profits in relation to the assets employed by the company during these quarters. The ratio reached its lowest point of -8.50% in Sep 2023.
In the most recent quarters, there has been a slight improvement in the operating ROA, with the ratio moving from negative values to -1.31% in Jun 2024. Despite this improvement, the company still needs to focus on enhancing its operational efficiency to generate higher profits from its assets.
Overall, the analysis shows periodic fluctuations in Western Digital Corporation's operating ROA, indicating a varying ability to effectively utilize its assets to generate operating profits.
Peer comparison
Jun 30, 2024