Western Digital Corporation (WDC)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.34	0.42	0.42	0.36	0.35	0.33	0.36	0.37	0.36	0.37	0.37	0.42	0.44	0.47	0.47	0.49	0.49	0.50	0.50	0.51

June 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $5,684,000K ÷ ($5,684,000K + $10,818,000K)
= 0.34

The debt-to-capital ratio of Western Digital Corporation has shown some fluctuation over the past few quarters. The ratio peaked at 0.51 in the fourth quarter of 2019 but has since decreased to 0.34 in the second quarter of 2024. This downward trend indicates that the company has been reducing its reliance on debt to finance its operations relative to its total capital.

Despite the fluctuation, the debt-to-capital ratio has generally remained within the range of 0.33 to 0.50 over the past few years. A ratio below 0.50 suggests that Western Digital Corporation has more equity relative to debt in its capital structure.

Overall, a decreasing debt-to-capital ratio can be seen as positive, as it indicates a lower financial risk and potential for improved financial stability for the company. However, it is essential to monitor the trend in the upcoming quarters to assess the company's long-term financial health and capital structure management.