Western Digital Corporation (WDC)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	10,818,000	10,121,000	10,068,000	10,230,000	10,964,000	11,741,000	12,245,000	12,222,000	12,221,000	11,984,000	12,018,000	11,361,000	10,721,000	9,949,000	9,829,000	9,576,000	9,551,000	9,243,000	9,379,000	9,566,000
ROE		-7.38%	-15.33%	-22.43%	-23.68%	-15.41%	-5.74%	-0.64%	7.67%	12.27%	15.20%	16.58%	13.12%	7.66%	3.49%	1.70%	-0.36%	-2.62%	-6.44%	-12.72%	-16.11%

June 30, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-798,000K ÷ $10,818,000K
= -7.38%

The return on equity (ROE) for Western Digital Corporation has exhibited significant fluctuations over the past few quarters. From December 2019 to March 2021, the ROE was negative, indicating that the company was generating losses or struggling to generate profits relative to its equity base.

However, starting from the June 2021 quarter, Western Digital Corporation's ROE began to show improvement, reaching positive territory again. The ROE peaked at 16.58% in the March 2022 quarter, showcasing a strong performance in generating profit relative to shareholders' equity.

Subsequently, the ROE fluctuated between 12.27% to 15.20% until the March 2023 quarter. However, from there, the ROE began to decline again, turning negative in the September 2023 quarter and reaching a low of -23.68% in the December 2023 quarter.

The negative ROE figures from September 2023 to June 2024 suggest that Western Digital Corporation faced challenges in generating profits compared to its equity base during these periods. The company will need to assess and address the underlying factors contributing to these negative returns to improve its financial performance and enhance shareholder value over the coming quarters.