Western Digital Corporation (WDC)

Debt-to-equity 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-equity ratio		0.53	0.72	0.73	0.57	0.53	0.50	0.57	0.58	0.57	0.59	0.59	0.73	0.79	0.87	0.90	0.95	0.97	1.01	1.02	1.04

June 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,684,000K ÷ $10,818,000K
= 0.53

The debt-to-equity ratio of Western Digital Corporation has shown some fluctuations over the past several quarters. The ratio was relatively stable around 0.5 to 0.6 range from March 2021 to September 2022. However, from December 2022 onwards, it started increasing gradually, reaching a peak of 1.04 at the end of December 2019.

A debt-to-equity ratio above 1 indicates that the company is financing a larger portion of its operations through debt rather than equity. This high ratio may suggest that the company is taking on more debt to fund its growth or operations, which could expose it to higher financial risk in case of economic downturns or rising interest rates.

It is important for investors and stakeholders to monitor the trend of the debt-to-equity ratio over time to assess Western Digital Corporation's financial health and the level of leverage the company is employing in its capital structure.