Western Digital Corporation (WDC)

Financial leverage ratio

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	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
Total assets	US$ in thousands	14,002,000	16,368,000	25,456,000	24,771,000	24,188,000	23,801,000	24,385,000	24,001,000	24,429,000	25,151,000	25,047,000	25,686,000	26,259,000	25,699,000	26,025,000	26,391,000	26,132,000	25,409,000	25,552,000	25,402,000
Total stockholders’ equity	US$ in thousands	5,540,000	5,406,000	12,346,000	11,872,000	10,818,000	10,121,000	10,944,000	10,113,000	10,847,000	11,611,000	12,115,000	12,107,000	12,221,000	11,984,000	12,018,000	11,361,000	10,721,000	9,949,000	9,829,000	9,576,000
Financial leverage ratio		2.53	3.03	2.06	2.09	2.24	2.35	2.23	2.37	2.25	2.17	2.07	2.12	2.15	2.14	2.17	2.32	2.44	2.55	2.60	2.65

June 30, 2025 calculation

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

The financial leverage ratio of Western Digital Corporation has exhibited a generally declining trend from September 2020 through December 2024, indicating a reduction in the company’s reliance on debt relative to its equity over this period. Specifically, the ratio decreased from 2.65 in September 2020 to a low of approximately 2.06 at the end of December 2024, suggesting improved leverage management and potentially lower financial risk.

Between September 2020 and December 2021, the ratio steadily declined from 2.65 to 2.17, reflecting a consistent deleveraging trend. The ratio continued its slight decline into September 2022, reaching a low of 2.12, and further decreased to approximately 2.06 by December 2024. These small fluctuations within this period underscore a relatively stable leverage position with minor variations.

However, starting from the beginning of 2025, the leverage ratio shows a notable upward movement, rising sharply from 2.23 at the end of December 2024 to 3.03 in March 2025. Subsequently, the ratio slightly declined but remained elevated at 2.64 as of June 2025. This reversal indicates an increase in the financial leverage, suggesting that the company may have adopted a more aggressive financing strategy or increased its debt levels relative to equity in this recent period.

Overall, the data reflects a period of progressive deleveraging from 2020 through late 2024, followed by a marked increase in leverage during the first half of 2025. The changes in the leverage ratio denote shifts in the company's capital structure management, with current figures implying a higher debt position in 2025 compared to the previous years.