Western Digital Corporation (WDC)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -233,000 | -1,090,000 | -1,825,000 | -1,986,000 | -1,248,000 | -21,000 | 765,000 | 1,799,000 | 2,427,000 | 2,517,000 | 2,510,000 | 1,954,000 | 1,253,000 | 849,000 | 664,000 | 563,000 | 367,000 | -262,000 | -766,000 | -632,000 |
| Long-term debt | US$ in thousands | 5,684,000 | 7,318,000 | 7,351,000 | 5,822,000 | 5,857,000 | 5,898,000 | 7,033,000 | 7,071,000 | 7,022,000 | 7,087,000 | 7,057,000 | 8,270,000 | 8,474,000 | 8,678,000 | 8,882,000 | 9,086,000 | 9,289,000 | 9,343,000 | 9,547,000 | 9,961,000 |
| 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 |
| Return on total capital | -1.41% | -6.25% | -10.48% | -12.37% | -7.42% | -0.12% | 3.97% | 9.32% | 12.61% | 13.20% | 13.16% | 9.95% | 6.53% | 4.56% | 3.55% | 3.02% | 1.95% | -1.41% | -4.05% | -3.24% |
June 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-233,000K ÷ ($5,684,000K + $10,818,000K)
= -1.41%
Western Digital Corporation's return on total capital has shown fluctuations over the past few quarters. The ratio was negative in several periods, indicating that the company's capital utilization was not generating positive returns. However, there was a notable improvement in return on total capital in the most recent quarters, with the ratio increasing from -12.37% in September 2023 to -1.41% in June 2024.
These improvements suggest that the company may be taking steps to enhance its capital efficiency and generate better returns for its investors. It is important to monitor future developments to see if Western Digital can sustain and further improve its return on total capital in the upcoming periods.
Peer comparison
Jun 30, 2024