Western Digital Corporation (WDC)

Return on assets (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
Net income (ttm)	US$ in thousands	1,846,000	1,633,000	1,248,000	380,000	-798,000	-1,552,000	-2,259,000	-2,418,000	-1,706,000	-690,000	-93,000	917,000	1,500,000	1,821,000	1,993,000	1,491,000	821,000	347,000	167,000	-34,000
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
ROA		13.18%	9.98%	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%

June 30, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $1,846,000K ÷ $14,002,000K
= 13.18%

The analysis of Western Digital Corporation’s return on assets (ROA) over the period from September 2020 through June 2025 reveals notable fluctuations indicative of evolving operational performance and profitability.

Initially, the ROA was negative at -0.13% as of September 30, 2020, signaling that during this period, the company was experiencing losses relative to its asset base. The subsequent quarters demonstrated a significant improvement, with ROA turning positive by December 31, 2020, at 0.65%, and continuing to ascend through the first half of 2021. By June 30, 2021, the ROA reached 3.14%, reflecting a strengthening in profitability and operational efficiency.

Throughout 2021, the trend remained upward, with ROA increasing to 5.65% in September and further to 7.66% by the end of the year, which underscores a period of operational growth and improved asset utilization. However, this momentum slowed somewhat in 2022; the ROA declined slightly to 7.09% in March and then decreased further to 5.71% in June. The latter part of 2022 saw the ROA turn negative, with figures of -0.37% at year-end and -2.74% in March 2023, indicating a reversal in profitability which could be attributed to external market conditions, internal operational challenges, or strategic shifts.

The downward trend persisted into 2023, with the ROA falling to -6.98% in June and -10.07% by September, reflecting intensified challenges or losses. Continued negative values persisted until December 2023, with a slight improvement to -9.26%, and the first half of 2024 characterized by further deficits at -6.52% in March and -3.30% in June.

Encouragingly, a reversal was observed in the latter part of 2024 and into 2025. The ROA turned positive, reaching 1.53% in September 2024, and showing a steady upward trajectory thereafter: 4.90% in December 2024, 10.00% in March 2025, and further increasing to approximately 13.43% by June 2025. This sharp turnaround suggests a significant improvement in profitability, potentially driven by operational efficiencies, favorable market conditions, or strategic initiatives enhancing asset utilization and overall financial health.

Overall, the ROA trend illustrates periods of recovery and growth interspersed with significant downturns, culminating in a robust positive outlook entering mid-2025. The initial negative and low positive phases were followed by a marked recovery, indicating that the company’s ability to generate earnings relative to its assets has substantially strengthened in the most recent periods.