Western Digital Corporation (WDC)

Debt-to-assets ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Long-term debt	US$ in thousands	5,684,000	5,857,000	7,022,000	8,474,000	9,289,000
Total assets	US$ in thousands	24,188,000	24,546,000	26,259,000	26,132,000	25,662,000
Debt-to-assets ratio		0.23	0.24	0.27	0.32	0.36

June 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $5,684,000K ÷ $24,188,000K
= 0.23

The debt-to-assets ratio of Western Digital Corporation has shown a declining trend over the past five years, indicating a relatively lower reliance on debt to finance its assets. The ratio decreased from 0.36 in June 30, 2020, to 0.23 in June 30, 2024, suggesting improved financial stability and a stronger asset base. This downward trend may be indicative of effective debt management strategies, which have reduced the company's overall debt burden in relation to its total assets. It is important to note that a lower debt-to-assets ratio generally reflects a lower financial risk and increased financial flexibility for the company. Overall, the decreasing trend in Western Digital Corporation's debt-to-assets ratio signals a positive financial health and effective management of its capital structure.