Western Digital Corporation (WDC)

Financial leverage ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Total assets	US$ in thousands	14,002,000	24,188,000	24,429,000	26,259,000	26,132,000
Total stockholders’ equity	US$ in thousands	5,540,000	10,818,000	10,847,000	12,221,000	10,721,000
Financial leverage ratio		2.53	2.24	2.25	2.15	2.44

June 30, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,002,000K ÷ $5,540,000K
= 2.53

The financial leverage ratio for Western Digital Corporation has exhibited fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the ratio stood at 2.44, indicating that the company employed a moderate level of debt in its capital structure at that time. Subsequently, by June 30, 2022, there was a notable decrease to 2.15, reflecting a reduction in leverage, which could suggest a strategic move toward deleveraging or improved equity position.

Between June 30, 2022, and June 30, 2023, the leverage ratio experienced a slight uptick to 2.25, indicating a marginal increase in debt relative to equity or assets. This pattern continued as the ratio remained relatively stable through June 30, 2024, at 2.24, signaling a period of stability in leverage levels.

By June 30, 2025, the leverage ratio increased to 2.53, surpassing the initial levels observed in 2021. This rise suggests that the company has slightly leveraged more in the recent year, potentially indicating increased debt levels, changes in capital structure, or strategic investments financed through debt.

Overall, the trend of Western Digital's financial leverage ratio reflects periods of both deleveraging and modest leveraging, with the recent data indicating a propensity towards increased leverage. These fluctuations may be influenced by strategic financial management decisions, external economic conditions, or investment activities influencing the company’s capital structure decisions over the observed timeframe.