Western Digital Corporation (WDC)

Solvency ratios

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
Debt-to-assets ratio 0.23 0.31 0.30 0.24 0.24 0.23 0.28 0.28 0.27 0.28 0.27 0.31 0.32 0.34 0.35 0.36 0.36 0.37 0.37 0.38
Debt-to-capital ratio 0.34 0.42 0.42 0.36 0.35 0.33 0.36 0.37 0.36 0.37 0.37 0.42 0.44 0.47 0.47 0.49 0.49 0.50 0.50 0.51
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
Financial leverage ratio 2.24 2.35 2.42 2.35 2.24 2.14 2.05 2.10 2.15 2.14 2.17 2.32 2.44 2.55 2.60 2.65 2.69 2.76 2.76 2.75

Western Digital Corporation's solvency ratios indicate its ability to meet its financial obligations and manage debt levels effectively over time.

The debt-to-assets ratio has shown a relatively stable trend ranging between 0.23 to 0.38 over the last few years. This ratio suggests that the company has been able to maintain a conservative level of debt relative to its total assets.

The debt-to-capital ratio has fluctuated between 0.34 and 0.51 during the same period, indicating that the company relies on debt for around 34% to 51% of its capital structure. This ratio indicates the extent to which the company's operations are funded by debt, with lower ratios generally considered more favorable.

The debt-to-equity ratio has varied from 0.53 to 1.04 over the analyzed period, showing a higher reliance on debt financing compared to equity. A higher ratio implies that a larger portion of the company's assets is financed through debt, which can increase financial risk.

The financial leverage ratio has also exhibited fluctuations, ranging between 2.05 and 2.76. This ratio reflects the company's financial leverage or the extent to which it utilizes debt to finance its operations and investments. Higher leverage ratios suggest higher financial risk due to increased debt obligations.

Overall, Western Digital Corporation's solvency ratios reflect a mix of conservative and aggressive debt management practices. It is essential for stakeholders to monitor these ratios closely to assess the company's ability to sustain its debt levels and financial health in the long term.

Coverage ratios

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
Interest coverage -0.56 -2.70 -4.87 -5.84 -4.00 -0.07 2.61 6.08 7.98 8.15 7.97 6.11 3.84 2.55 1.89 1.50 0.89 -0.59 -1.66 -1.33

The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.

Based on the data provided for Western Digital Corporation, we can see fluctuations in the interest coverage ratio over the past quarters. The interest coverage ratio has been volatile, with both positive and negative values recorded.

In the most recent quarter, the interest coverage ratio was -0.56, indicating that the company's operating income was not sufficient to cover its interest expenses. This suggests a potential liquidity issue as the company may struggle to meet its debt obligations.

Looking at the historical trend, the interest coverage ratio has shown improvement from negative values to positive values in the past quarters. This improvement reflects a better ability to cover interest expenses with operating income.

Overall, a consistent and sustained improvement in the interest coverage ratio would be desirable for Western Digital Corporation to demonstrate its financial stability and ability to service its debt obligations effectively.

See also:

Western Digital Corporation Solvency Ratios (Quarterly Data)