Western Digital Corporation (WDC)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,654,000 | 1,859,000 | 2,054,000 | 1,067,000 | -244,000 | -1,090,000 | -1,819,000 | -1,974,000 | -1,208,000 | 44,000 | 1,011,000 | 2,046,000 | 2,660,000 | 2,712,000 | 2,425,000 | 1,889,000 | 1,184,000 | 722,000 | 646,000 | 512,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,311,000 | 5,406,000 | 12,346,000 | 11,643,000 | 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 |
| Return on total capital | 31.14% | 34.39% | 16.64% | 9.16% | -2.26% | -10.77% | -16.62% | -19.52% | -11.14% | 0.38% | 8.35% | 16.90% | 21.77% | 22.63% | 20.18% | 16.63% | 11.04% | 7.26% | 6.57% | 5.35% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,654,000K ÷ ($—K + $5,311,000K)
= 31.14%
The return on total capital (ROTC) for Western Digital Corporation exhibits significant fluctuations over the analyzed period, indicating substantial variability in the company's ability to generate earnings relative to its total capital base.
From September 30, 2020, the ROTC was approximately 5.35%, demonstrating modest profitability. This figure increased steadily through the subsequent quarters and years, reaching a peak of approximately 22.63% by March 31, 2022, which suggests a period of strong operational efficiency and effective capital utilization.
Following this peak, the ROTC experienced a decline, with a notable downward trend evident from the latter half of 2022 into 2023. By September 30, 2023, the ratio had fallen into negative territory at approximately -19.52%, reflecting not only diminished profitability but also potential impairment of assets, increased costs, or challenging market conditions affecting overall performance.
The negative trend persisted into the first half of 2024, with ratios approaching -10.77%, before beginning a recovery trajectory during the second half of 2024. Notably, the ratio turned positive again at 9.16% as of September 30, 2024, indicating a reversal of prior losses and an improvement in the company's ability to allocate its capital profitably.
Further projections suggest continued positive momentum, with the ROTC expected to reach approximately 34.39% by March 31, 2025, indicating a potentially robust period of profitability and capital efficiency. By June 30, 2025, the ratio remains high at around 31.14%, emphasizing an optimistic outlook based on current trends.
Overall, the analysis reflects a pattern of recovery following a period of significant decline. The fluctuating nature of the ROTC underscores the importance of examining underlying operational, market, and strategic factors influencing the company's profitability over time.
Peer comparison
Jun 30, 2025