Western Digital Corporation (WDC)
Financial leverage ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 24,188,000 | 24,546,000 | 26,259,000 | 26,132,000 | 25,662,000 |
| Total stockholders’ equity | US$ in thousands | 10,818,000 | 10,964,000 | 12,221,000 | 10,721,000 | 9,551,000 |
| Financial leverage ratio | 2.24 | 2.24 | 2.15 | 2.44 | 2.69 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $24,188,000K ÷ $10,818,000K
= 2.24
The financial leverage ratio for Western Digital Corporation has shown some fluctuations over the past five years. The ratio indicates the extent to which the company relies on debt financing compared to equity. In 2020, the ratio was at its highest at 2.69, suggesting a higher level of debt in the company's capital structure. However, in the subsequent years, the ratio decreased to 2.15 in 2022, indicating a lower reliance on debt financing.
In 2023 and 2024, the financial leverage ratio remained constant at 2.24, which could imply a stable capital structure where the proportion of debt to equity is consistent. Overall, while the company's financial leverage fluctuated over the years, it seems to have stabilized in recent years, reflecting a balanced approach in utilizing debt and equity to finance its operations and investments.
Peer comparison
Jun 30, 2024