Western Digital Corporation (WDC)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	5,540,000	10,818,000	10,847,000	12,221,000	10,721,000
ROE		29.66%	-7.38%	-15.73%	12.65%	7.66%

June 30, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,643,000K ÷ $5,540,000K
= 29.66%

The analysis of Western Digital Corporation’s return on equity (ROE) over the specified period reveals significant fluctuations that reflect changes in the company's profitability and efficiency in generating returns on shareholders’ equity. As of June 30, 2021, the ROE was 7.66%, indicating a modest level of profitability relative to shareholders' equity. This figure increased substantially to 12.65% by June 30, 2022, suggesting an improvement in the company's ability to generate profits from its equity base.

However, this positive trend was interrupted in the subsequent year, with the ROE declining sharply to -15.73% as of June 30, 2023. The negative value indicates that the company was experiencing losses or decreased profitability, resulting in a detrimental impact on shareholders’ equity. The following year, the ROE further declined to -7.38%, suggesting some improvement from the prior negative peak but still reflecting ongoing challenges.

Remarkably, by June 30, 2025, the ROE recovered to a significantly positive 29.66%, indicating a strong turnaround in profitability and operational efficiency. This notable increase suggests that the company managed to generate substantial returns relative to shareholders’ equity, potentially due to strategic adjustments, improved market conditions, cost management, or revenue growth.

Overall, Western Digital’s ROE trajectory depicts periods of both recovery and difficulty. The initial improvement from 2021 to 2022 contrasts with the subsequent downturn into negative territory, followed by a substantial rebound to robust profitability in 2025. These variations underscore the importance of examining underlying operational, strategic, and market factors influencing the company's financial performance during these periods.