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 5,311,000 5,406,000 12,346,000 11,643,000 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 2.64 3.03 2.06 2.13 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 ÷ $5,311,000K
= 2.64

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.


Peer comparison

Jun 30, 2025

Company name
Symbol
Financial leverage ratio
Western Digital Corporation
WDC
2.64
NetApp Inc
NTAP
10.41
Pure Storage Inc
PSTG
3.03
Seagate Technology PLC
STX

See also:

Western Digital Corporation Financial Leverage (Quarterly Data)