Western Digital Corporation (WDC)

Return on assets (ROA)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Net income	US$ in thousands	1,643,000	-798,000	-1,706,000	1,546,000	821,000
Total assets	US$ in thousands	14,002,000	24,188,000	24,429,000	26,259,000	26,132,000
ROA		11.73%	-3.30%	-6.98%	5.89%	3.14%

June 30, 2025 calculation

ROA = Net income ÷ Total assets
= $1,643,000K ÷ $14,002,000K
= 11.73%

The analysis of Western Digital Corporation's return on assets (ROA) over the specified period reveals considerable fluctuations that reflect changes in the company's profitability and asset efficiency.

As of June 30, 2021, the ROA was approximately 3.14%, indicating a modest level of profitability generated from its assets during that year. This figure increased significantly by June 30, 2022, reaching approximately 5.89%, suggesting an improvement in the company's ability to generate profit relative to its asset base.

However, by June 30, 2023, Western Digital experienced a sharp decline, with the ROA turning negative at around -6.98%. This negative ROA signifies that the company incurred losses or failed to generate sufficient profit from its assets during that fiscal year, which could be attributed to operational challenges, market declines, or one-time impairment charges.

The subsequent year, June 30, 2024, showed a partial recovery in ROA, improving to approximately -3.30%. While this indicates an improvement over the previous year, the company's profitability remained below the breakeven point, with assets not effectively translating into profitable outcomes.

By June 30, 2025, the ROA improved markedly to approximately 11.73%. This significant positive turnaround suggests a substantial enhancement in operational efficiency and profitability, potentially driven by strategic initiatives, market recovery, or other favorable factors.

Overall, the ROA trend highlights periods of both growth and challenge for Western Digital Corporation, reflecting the company's varying ability to generate net income from its asset base over time.