Western Digital Corporation (WDC)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	5,540,000	5,406,000	12,346,000	11,872,000	10,818,000	10,121,000	10,944,000	10,113,000	10,847,000	11,611,000	12,115,000	12,107,000	12,221,000	11,984,000	12,018,000	11,361,000	10,721,000	9,949,000	9,829,000	9,576,000
ROE		33.32%	30.21%	10.11%	3.20%	-7.38%	-15.33%	-20.64%	-23.91%	-15.73%	-5.94%	-0.77%	7.57%	12.27%	15.20%	16.58%	13.12%	7.66%	3.49%	1.70%	-0.36%

June 30, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,846,000K ÷ $5,540,000K
= 33.32%

The analysis of Western Digital Corporation's return on equity (ROE) over the specified periods reveals significant fluctuations with an overarching trend of initial improvement followed by a substantial decline.

Initially, the ROE was negative at -0.36% as of September 30, 2020, indicating that the company was experiencing losses relative to shareholders’ equity. By December 31, 2020, the ROE turned positive at approximately 1.70%, signaling a recovery in profitability. This upward trajectory continued into 2021, with ROE reaching 3.49% as of March 31, 2021, and then accelerating markedly to 7.66% by June 30, 2021. The most notable improvement occurred in the latter half of 2021, with ROE surging to 13.12% at September 30 and further to 16.58% on December 31, 2021, suggestive of strong financial performance and effective management of shareholders’ equity during that period.

In 2022, the positive trend persisted in the first quarter, with an ROE of 15.20%, but subsequently, a downward correction was observed, as the figures declined to 12.27% by June 30. The decline continued sharply in the latter part of 2022 and into 2023, with ROE turning negative again at -0.77% by December 31, 2022, and worsening further to -5.94% by March 31, 2023, and -15.73% by June 30, 2023. The negative trend persisted into September 2023, with an ROE of -23.91%, indicating that the company was generating losses relative to equity.

The downward momentum persisted into late 2023, with ROE reaching -20.64% at December 31, 2023, and remaining negative at -15.33% in March 2024. However, a notable turnaround began in the following periods; in June 2024, ROE improved to -7.38%, and further strengthened to 3.26% by September 30, 2024. The upward trend continued into 2025, with ROE significantly increasing to 10.11% by December 31, 2024, and further escalating to 30.28% at March 31, 2025, and reaching 35.40% by June 30, 2025.

Overall, the ROE history of Western Digital Corporation demonstrates a cycle characterized by recovery and growth phases, sharp setbacks resulting in negative profitability, and subsequent substantial recovery. The recent data indicates a positive trajectory, culminating in double-digit ROE levels, which suggests a return to favorable profitability and efficient use of shareholders’ equity in the most recent periods.