Western Digital Corporation (WDC)

Return on assets (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
Net income (ttm)	US$ in thousands	-798,000	-1,552,000	-2,258,000	-2,422,000	-1,690,000	-674,000	-78,000	937,000	1,500,000	1,821,000	1,993,000	1,491,000	821,000	347,000	167,000	-34,000	-250,000	-595,000	-1,193,000	-1,541,000
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
ROA		-3.30%	-6.52%	-9.26%	-10.09%	-6.89%	-2.68%	-0.31%	3.65%	5.71%	7.09%	7.66%	5.65%	3.14%	1.37%	0.65%	-0.13%	-0.97%	-2.33%	-4.61%	-5.86%

June 30, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $-798,000K ÷ $24,188,000K
= -3.30%

The return on assets (ROA) of Western Digital Corporation has experienced fluctuations over the past few quarters. From December 2019 to June 2022, the ROA consistently increased from -4.61% to 7.66%, indicating improved efficiency in generating profits from its assets. However, from September 2022 onwards, the ROA started to decline significantly, reaching a negative ROA of -10.09% by September 2023.

This downward trend suggests that Western Digital's ability to generate profits from its assets has weakened, potentially due to factors such as increased expenses or declining revenue. The negative ROA values in recent quarters (-3.30% to -10.09%) indicate that the company is currently not effectively utilizing its assets to generate profits, which may raise concerns among investors and stakeholders.

It is essential for Western Digital to closely monitor and address the reasons behind the declining ROA to improve its operational efficiency and profitability in the future.