Western Digital Corporation (WDC)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 38.00% | 36.93% | 34.75% | 30.65% | 22.65% | 14.14% | 8.61% | 8.87% | 15.32% | 22.86% | 26.25% | 29.69% | 31.26% | 31.25% | 31.18% | 29.26% | 26.72% | 24.79% | 24.21% | 23.63% |
| Operating profit margin | 22.85% | 17.80% | 13.35% | 7.12% | -2.44% | -9.93% | -16.77% | -16.97% | -9.49% | 0.30% | 5.07% | 10.13% | 12.72% | 13.05% | 13.18% | 10.68% | 7.21% | 4.95% | 3.93% | 3.21% |
| Pretax margin | 13.48% | 10.70% | 10.57% | 4.52% | -5.08% | -12.53% | -19.54% | -20.53% | -12.66% | -2.25% | 3.00% | 8.60% | 11.30% | 11.51% | 11.59% | 9.05% | 5.48% | 3.17% | 1.92% | 1.13% |
| Net profit margin | 14.16% | 11.34% | 8.00% | 2.65% | -6.14% | -13.03% | -20.07% | -21.34% | -13.85% | -4.87% | -0.59% | 5.25% | 7.98% | 9.49% | 10.52% | 8.26% | 4.85% | 2.13% | 1.02% | -0.20% |
The profitability ratios for Western Digital Corporation over the analyzed period reveal several notable trends and patterns.
Gross Profit Margin: The gross profit margin exhibits a general upward trajectory from approximately 23.63% as of September 30, 2020, to a peak of around 38.00% projected by June 30, 2025. The margin increased steadily through 2020 and 2021, reaching a high of 31.26% by June 30, 2022. However, there was a significant decline beginning in late 2022, dropping sharply from over 29% to approximately 8.87% by September 2023. This decline indicates a substantial narrowing of gross margins, likely reflecting increasing costs, pricing pressures, or changes in product mix, although there is a notable recovery forecasted in 2024 and 2025, with estimates reaching nearly 39% by mid-2025.
Operating Profit Margin: The operating margin showed consistent improvement from 3.21% in September 2020 to a peak of 13.18% in December 2021, suggesting effective operational improvements during that period. However, starting in 2022, the operating margin declined markedly, turning negative in mid-2023 with figures as low as -16.97% by September 2023. After reaching a trough, the margin gradually improved in late 2024 into positive territory, with forecasts pointing to sustainable profitability, reaching about 22.85% by mid-2025. This pattern indicates substantial operational challenges experienced from 2022 onward, followed by a recovery phase.
Pre-Tax Margin: The pre-tax margin mirrors the trend observed in the operating margin, beginning at modest levels around 1.13% in September 2020, rising to over 11.59% in December 2021, then declining sharply into negative territory by 2023, with figures dropping as low as -20.53%. A recovery is projected in 2024, with pre-tax margins turning positive again, reaching approximately 13.48% by mid-2025, aligning with operational improvements.
Net Profit Margin: The net profit margin demonstrated the most volatility. Starting from negative in September 2020 at -0.20%, it improved steadily into positive territory by December 2020 and continued upward to over 10% in December 2021. The margin then contracted, dipping into negative territory again in late 2022 and 2023, with figures as low as -21.34%. The forecast indicates a turnaround in 2024, with the net profit margin rebounding to approximately 14.16% by mid-2025, reflecting enhanced profitability after periods of significant losses or operational disruption.
Overall Summary: The company's profitability ratios highlight a period of growth and improved efficiencies through 2020 and 2021, followed by a pronounced downturn starting in 2022, likely due to macroeconomic, industry-specific, or operational headwinds. Recent forecasts suggest a recovery trajectory, with profitability measures expected to regain strength in 2024 and 2025, ultimately indicating a positive outlook contingent on successful management of costs, pricing strategies, and operational efficiencies.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 13.43% | 10.00% | 4.90% | 1.53% | -3.30% | -6.52% | -9.26% | -10.07% | -6.98% | -2.74% | -0.37% | 3.57% | 5.71% | 7.09% | 7.66% | 5.65% | 3.14% | 1.37% | 0.65% | -0.13% |
| Return on total capital | 31.14% | 34.39% | 16.64% | 9.16% | -2.26% | -10.77% | -16.62% | -19.52% | -11.14% | 0.38% | 8.35% | 16.90% | 21.77% | 22.63% | 20.18% | 16.63% | 11.04% | 7.26% | 6.57% | 5.35% |
| Return on equity (ROE) | 35.40% | 30.28% | 10.11% | 3.26% | -7.38% | -15.33% | -20.64% | -23.91% | -15.73% | -5.94% | -0.77% | 7.57% | 12.27% | 15.20% | 16.58% | 13.12% | 7.66% | 3.49% | 1.70% | -0.36% |
The profitability ratios for Western Digital Corporation over the specified periods demonstrate notable fluctuations, reflecting evolving operational performance and market conditions.
Operating Return on Assets (Operating ROA):
Initially, from September 2020 through December 2021, the company's operating ROA experienced a consistent upward trend, rising from 2.10% to a peak of 9.59%. This indicates improved efficiency in generating operating income relative to total assets during this timeframe. However, starting in 2022, the ratio declined markedly, reaching negative territory by September 2022 and continuing downward through subsequent periods, with deficits increasingly widening to -8.01% by September 2023. This fall suggests a significant deterioration in the company's core operating profitability relative to its assets. Interestingly, from December 2023 onward, there is a recognizable turnaround, with the ratio moving into positive territory again and showing substantial recovery, reaching 21.67% by June 2025, indicative of a strong rebound in operational efficiency.
Return on Assets (ROA):
Similarly, the ROA exhibited incremental improvement from negative territory in September 2020 (-0.13%) to positive peaks in early 2022 (7.66%). Nevertheless, a sustained decline commenced thereafter, culminating in consecutive negative figures beginning in September 2022 through March 2024. The lowest point was approximately -10.07% in September 2023, signaling a period of unprofitability on an asset basis. Notably, the ratios improved sharply subsequently, turning positive again by September 2024, reaching 4.90%, and further increasing to 13.43% by June 2025, suggesting restored profitability relative to total assets.
Return on Total Capital:
This ratio followed a trajectory similar to the other profitability measures, with significant growth from 5.35% in September 2020 to a peak of 20.18% in December 2021. Post-2021, there is a pronounced decline, with negative ratios observed from March 2023 onward, hitting -19.52% in September 2023. The recovery is evident from late 2024 into mid-2025, with the ratio ascending to over 31%, reflecting improved efficiency in generating returns on total invested capital.
Return on Equity (ROE):
The ROE trend indicates an initial move into positive territory in late 2020, reaching a high of 16.58% at the end of 2021, followed by a declining phase into negative territory by March 2023. The deepest negative was -23.91% in September 2023, suggesting substantial erosion in shareholders’ returns during that period. Nonetheless, the ratio demonstrates a positive turnaround approaching 30% in March 2025, signaling a strong upward recovery in shareholder returns.
Summary:
Overall, Western Digital Corporation’s profitability ratios from September 2020 to mid-2025 depict a cycle of growth, significant decline, followed by recovery. The initial improvement across all ratios reflects periods of enhanced operational efficiency and profitability. The downturn beginning in 2022 signifies challenges that impacted core and overall profitability, possibly attributable to industry cyclicality or company-specific factors. The resurgence seen from late 2023 onward suggests successful strategic adjustments or market recovery efforts, culminating in robust profitability ratios by mid-2025.
See also:
Western Digital Corporation Profitability Ratios (Quarterly Data)