Analysis of Debt
Total Debt (Carrying Amount)
Western Digital Corp., balance sheet: debt
US$ in millions
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).
- Current Portion of Long-Term Debt
- There is a general fluctuating trend observed in the current portion of long-term debt from 2018 to 2023. The value increased from 179 million USD in mid-2018 to 286 million USD in 2020, followed by a decrease to 251 million USD in 2021. Data for 2022 is missing, but there is a significant rise to 1,213 million USD in 2023, nearly a fivefold increase compared to the previous recorded amount in 2021.
- Long-Term Debt, Less Current Portion
- This component exhibits a steady decline over the six-year period. Starting at 10,993 million USD in 2018, the long-term debt less the current portion consistently decreased each year, reaching 5,857 million USD by 2023. This indicates a progressive reduction of the company’s long-term debt obligations, excluding the current portions.
- Total Long-Term Debt, Including Current Portion (Carrying Amount)
- The total long-term debt, combining both current and non-current portions, shows a decreasing trend from 11,172 million USD in 2018 down to 7,022 million USD in 2022. An exception appears in 2023 with a slight increase to 7,070 million USD after a consistent decline in prior years. This overall reduction suggests the company has been retiring its long-term debt over the observed period, despite the notable increase in current portions in 2023.
- Summary of Trends
- The data reflects a strategic decrease in the company’s long-term debt commitment over the years, reducing nearly by half from 2018 through 2023. However, the significant surge in the current portion of long-term debt in 2023 may suggest increased short-term obligations or refinancing activities. Despite this, the total long-term debt remains much lower than earlier years, indicating an overall deleveraging trend with potential shifts in the debt structure towards more short-term liabilities in the most recent year.
Total Debt (Fair Value)
| Jun 30, 2023 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Financial instruments | 6,692) |
| Revolving credit facility maturing 2023 | —) |
| Total long-term debt, including current portion (fair value) | 6,692) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.95 |
Based on: 10-K (reporting date: 2023-06-30).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 4.68%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 1.50% | 1,100) | 17) | |
| 4.75% | 2,300) | 109) | |
| 6.56% | 2,700) | 177) | |
| 2.85% | 500) | 14) | |
| 3.10% | 500) | 16) | |
| Total | 7,100) | 333) | |
| 4.68% | |||
Based on: 10-K (reporting date: 2023-06-30).
1 US$ in millions
2 Weighted-average interest rate = 100 × 333 ÷ 7,100 = 4.68%