Stock Analysis on Net
Stock Analysis on Net

Western Digital Corp. (NASDAQ:WDC)

This company has been moved to the archive! The financial data has not been updated since February 12, 2024.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Western Digital Corp., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Jun 30, 2023 -14.55% = -6.98% × 2.08
Jul 1, 2022 12.27% = 5.71% × 2.15
Jul 2, 2021 7.66% = 3.14% × 2.44
Jul 3, 2020 -2.62% = -0.97% × 2.69
Jun 28, 2019 -7.56% = -2.86% × 2.65
Jun 29, 2018 5.85% = 2.31% × 2.54

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-07-01), 10-K (reporting date: 2021-07-02), 10-K (reporting date: 2020-07-03), 10-K (reporting date: 2019-06-28), 10-K (reporting date: 2018-06-29).

The primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Western Digital Corp., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jun 30, 2023 -14.55% = -13.85% × 0.50 × 2.08
Jul 1, 2022 12.27% = 7.98% × 0.72 × 2.15
Jul 2, 2021 7.66% = 4.85% × 0.65 × 2.44
Jul 3, 2020 -2.62% = -1.49% × 0.65 × 2.69
Jun 28, 2019 -7.56% = -4.55% × 0.63 × 2.65
Jun 29, 2018 5.85% = 3.27% × 0.71 × 2.54

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-07-01), 10-K (reporting date: 2021-07-02), 10-K (reporting date: 2020-07-03), 10-K (reporting date: 2019-06-28), 10-K (reporting date: 2018-06-29).

The primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Western Digital Corp., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Jun 30, 2023 -14.55% = — × — × -10.13% × 0.50 × 2.08
Jul 1, 2022 12.27% = 0.71 × 0.87 × 12.91% × 0.72 × 2.15
Jul 2, 2021 7.66% = 0.89 × 0.74 × 7.40% × 0.65 × 2.44
Jul 3, 2020 -2.62% = — × -0.13 × 2.19% × 0.65 × 2.69
Jun 28, 2019 -7.56% = — × -1.58 × 1.10% × 0.63 × 2.65
Jun 29, 2018 5.85% = 0.32 × 0.76 × 13.37% × 0.71 × 2.54

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-07-01), 10-K (reporting date: 2021-07-02), 10-K (reporting date: 2020-07-03), 10-K (reporting date: 2019-06-28), 10-K (reporting date: 2018-06-29).

Two-Component Disaggregation of ROA

Western Digital Corp., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Jun 30, 2023 -6.98% = -13.85% × 0.50
Jul 1, 2022 5.71% = 7.98% × 0.72
Jul 2, 2021 3.14% = 4.85% × 0.65
Jul 3, 2020 -0.97% = -1.49% × 0.65
Jun 28, 2019 -2.86% = -4.55% × 0.63
Jun 29, 2018 2.31% = 3.27% × 0.71

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-07-01), 10-K (reporting date: 2021-07-02), 10-K (reporting date: 2020-07-03), 10-K (reporting date: 2019-06-28), 10-K (reporting date: 2018-06-29).

The primary reason for the decrease in return on assets ratio (ROA) over 2023 year is the decrease in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Western Digital Corp., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Jun 30, 2023 -6.98% = — × — × -10.13% × 0.50
Jul 1, 2022 5.71% = 0.71 × 0.87 × 12.91% × 0.72
Jul 2, 2021 3.14% = 0.89 × 0.74 × 7.40% × 0.65
Jul 3, 2020 -0.97% = — × -0.13 × 2.19% × 0.65
Jun 28, 2019 -2.86% = — × -1.58 × 1.10% × 0.63
Jun 29, 2018 2.31% = 0.32 × 0.76 × 13.37% × 0.71

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-07-01), 10-K (reporting date: 2021-07-02), 10-K (reporting date: 2020-07-03), 10-K (reporting date: 2019-06-28), 10-K (reporting date: 2018-06-29).

Disaggregation of Net Profit Margin

Western Digital Corp., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Jun 30, 2023 -13.85% = — × — × -10.13%
Jul 1, 2022 7.98% = 0.71 × 0.87 × 12.91%
Jul 2, 2021 4.85% = 0.89 × 0.74 × 7.40%
Jul 3, 2020 -1.49% = — × -0.13 × 2.19%
Jun 28, 2019 -4.55% = — × -1.58 × 1.10%
Jun 29, 2018 3.27% = 0.32 × 0.76 × 13.37%

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-07-01), 10-K (reporting date: 2021-07-02), 10-K (reporting date: 2020-07-03), 10-K (reporting date: 2019-06-28), 10-K (reporting date: 2018-06-29).