Common-Size Income Statement
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- Balance Sheet: Assets
- Cash Flow Statement
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Total Asset Turnover since 2005
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Western Digital Corp., common-size consolidated income statement
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).
- Revenue and Cost of Revenue Trends
- The net revenue remained constant at 100% throughout the periods, serving as a baseline for analysis. The cost of revenue as a percentage of net revenue demonstrated volatility, initially increasing sharply from -62.68% in 2018 to around -77.4% in 2019 and 2020, before improving to -68.74% in 2022 and then deteriorating significantly to -84.68% in 2023. This indicates fluctuations in the cost efficiency related to the company’s revenue generation efforts over the years.
- Gross Profit Margin
- Gross profit margin closely mirrored the cost of revenue trends, starting from a strong 37.32% in 2018 and declining steeply to about 22.6% in 2019 and 2020. Thereafter, an improvement was seen in 2021 and 2022, peaking at 31.26%, before a pronounced drop to 15.32% in 2023. This trend suggests variability in the company’s profitability at the gross profit level, with 2023 marking a significant challenge.
- Operating Expenses Analysis
- Research and development expenses fluctuated over the period, generally trending higher from -11.62% in 2018 to -16.31% in 2023, indicating increased investment or cost pressures in innovation or product development. Selling, general, and administrative expenses remained relatively stable but showed minor variations, decreasing to -5.94% in 2022 before rising again to -7.87% in 2023. Employee termination, asset impairment, and other charges were mostly minimal, though they spiked negatively in 2023 (-1.57%), marking a departure from prior generally modest levels.
- Operating Income and Profitability
- Operating income displayed significant volatility, dropping from a strong 17.52% in 2018 to near breakeven in 2019 (0.53%) and remaining low in 2020 (2%). A recovery phase was evident in 2021 and 2022, with operating income rising to 12.72%, but this was reversed sharply in 2023, resulting in a -10.43% operating loss. This pattern highlights the company’s challenges in maintaining operating profitability over time, especially with the marked downturn in the most recent year.
- Interest and Other Income/Expense
- Interest income was consistently low, fluctuating slightly but remaining less than 0.3% of net revenue each year. Interest expense decreased progressively from -3.27% in 2018 to -1.62% in 2022 but increased slightly to -2.53% in 2023, reflecting some variability in financing costs. Other income (expense), net, mostly hovered close to zero with minor positive and negative excursions, contributing modestly to net results. Combined interest and other income (expense), net showed a declining trend from -7.42% in 2018 to around -1.43% in 2022, but worsened again to -2.23% in 2023.
- Income Before Taxes and Tax Expense
- Income before taxes varied significantly, moving from a positive 10.1% in 2018 to negative territory in 2019 (-1.73%) and 2020 (-0.27%). A recovery phase was seen in 2021 and 2022, with figures climbing to 11.3%, followed by a substantial drop to -12.66% in 2023. Income tax expense as a percentage of revenue generally declined over the years, except for a spike to -3.32% in 2022, aligning with the fluctuating pre-tax income scenarios.
- Net Income and Shareholder Impact
- Net income demonstrated a volatile trajectory, positive at 3.27% in 2018, shifting to losses in 2019 (-4.55%) and 2020 (-1.49%), recovering in 2021 (4.85%) and 2022 (7.98%), then dropping sharply to a significant loss of -13.85% in 2023. Net income attributable to common shareholders followed a closely similar pattern. The allocation of dividends to preferred shareholders was only recorded in 2023 at -0.19%. Overall, the net income trends indicate earnings instability with recent pronounced negative outcomes adversely affecting common shareholders.