Western Digital Corporation (WDC)
Return on total capital
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,462,000 | -244,000 | -1,228,000 | 2,667,000 | 1,109,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,540,000 | 10,818,000 | 10,847,000 | 12,221,000 | 10,721,000 |
| Return on total capital | 26.39% | -2.26% | -11.32% | 21.82% | 10.34% |
June 30, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,462,000K ÷ ($—K + $5,540,000K)
= 26.39%
The analysis of Western Digital Corporation’s return on total capital over the period from June 30, 2021, to June 30, 2025, reveals significant fluctuations in its efficiency in generating profits from its overall capital base.
In the fiscal year ending June 30, 2021, the company's return on total capital stood at 10.34%, indicating a modest level of profitability relative to its total capital during that period. This figure markedly increased by June 30, 2022, reaching 21.82%, reflecting a substantial improvement in the company's operational efficiency and profitability over that year.
However, by the subsequent year ending June 30, 2023, the return sharply declined to -11.32%, indicating that the company incurred losses or experienced reduced profitability relative to its total capital. This negative return persisted into June 30, 2024, with a slight improvement to -2.26%, suggesting a partial recovery but still an overall lack of profitability during this period.
The trajectory shifts notably in the final reported period, with the return on total capital significantly improving to 26.39% as of June 30, 2025. This indicates a strong resurgence in the company's ability to generate profits from its capital base, surpassing previous levels and signaling a potentially successful strategic or operational turnaround.
Overall, these data points depict a highly volatile performance pattern over the five-year span, characterized by initial growth, followed by a period of losses, partial recovery, and a substantial positive leap, highlighting varying operational conditions and strategic outcomes impacting the company’s profitability relative to its total capital.
Peer comparison
Jun 30, 2025