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.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

Western Digital Corp., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Jun 30, 2023 Jul 1, 2022 Jul 2, 2021 Jul 3, 2020 Jun 28, 2019 Jun 29, 2018
Accounts payable 5.29 7.24 7.40 7.58 5.94 7.75
Accounts payable to related parties 1.20 1.22 1.52 1.59 1.26 0.89
Accrued expenses 5.27 6.23 5.32 5.05 4.91 4.36
Income taxes payable 4.09 3.31 1.01 0.00 0.00 0.00
Accrued compensation 1.43 1.94 2.43 1.84 1.32 1.64
Current portion of long-term debt 4.97 0.00 0.96 1.11 1.05 0.61
Current liabilities 22.24% 19.94% 18.64% 17.17% 14.47% 15.24%
Long-term debt, less current portion 23.98 26.74 32.43 36.20 38.85 37.60
Non-current net tax payable 1.90 2.51 2.62 3.18 3.52 4.50
Non-current portion of unrecognized tax benefits 1.67 1.82 2.87 2.81 2.65 1.74
Other non-current liabilities 2.22 2.45 2.42 3.43 2.70 1.48
Other liabilities 5.79% 6.77% 7.91% 9.41% 8.87% 7.71%
Non-current liabilities 29.77% 33.52% 40.34% 45.61% 47.73% 45.32%
Total liabilities 52.01% 53.46% 58.97% 62.78% 62.20% 60.56%
Convertible preferred stock, $0.01 par value 3.59 0.00 0.00 0.00 0.00 0.00
Common stock, $0.01 par value 0.01 0.01 0.01 0.01 0.01 0.01
Additional paid-in capital 16.11 14.22 13.81 14.48 14.60 14.55
Accumulated other comprehensive loss -2.11 -2.11 -0.75 -0.61 -0.26 -0.13
Retained earnings 30.39 34.42 28.85 26.21 28.25 29.95
Treasury stock, common shares at cost 0.00 0.00 -0.89 -2.87 -4.81 -4.94
Shareholders’ equity 47.99% 46.54% 41.03% 37.22% 37.80% 39.44%
Total liabilities and shareholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

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 analysis of the financial data reveals several notable trends over the periods observed.

Liabilities
The proportion of current liabilities relative to total liabilities and shareholders’ equity has consistently increased from 15.24% in June 2018 to 22.24% in June 2023, indicating a growing short-term obligation. Conversely, long-term debt (excluding current portion) has decreased steadily from 37.60% to 23.98% in the same period, reflecting a reduction in longer-term borrowing. Other non-current liabilities and non-current net tax payable have also declined, contributing to an overall decrease in non-current liabilities from 45.32% in 2018 to 29.77% in 2023. Total liabilities as a whole have diminished over time from 60.56% to 52.01%, which suggests a gradual deleveraging or a shift in the balance structure toward equity financing.
Specific Current Liabilities
Accounts payable as a percentage of total liabilities and shareholders’ equity has fluctuated, peaking in 2020 at 7.58% before declining to 5.29% in 2023. Accounts payable to related parties experienced an initial increase peaking at 1.59% in 2020 before a slight reduction to 1.20%. Accrued expenses have generally grown, reaching their highest point at 6.23% in 2022 before declining to 5.27% in 2023. Income taxes payable showed emergence in 2021 at 1.01%, rising significantly to 4.09% by 2023, signaling potentially higher tax liabilities. Accrued compensation fluctuated but remained at moderate levels around 1.3% to 2.4%. The current portion of long-term debt exhibited variable behavior, notably jumping to 4.97% in 2023 after being minimal or absent in prior years.
Equity Components
Shareholders’ equity as a percentage of total liabilities and shareholders’ equity improved steadily from 39.44% in 2018 to 47.99% in 2023, demonstrating stronger capitalization. Retained earnings showed a dip from 29.95% in 2018 to 26.21% in 2020 but rebounded to 34.42% in 2022 before slightly declining in 2023 to 30.39%. Additional paid-in capital remained relatively stable within the range of approximately 13.8% to 16.1%, with an increase noted in the latest year. The accumulated other comprehensive loss grew in magnitude, reaching -2.11% in 2022 and remaining at that level in 2023, which could reflect increased unrealized losses or adjustments. Treasury stock, which was increasingly negative (representing share repurchases) until 2021, disappeared from the data in the last two years, indicating a possible change in treasury management or reporting. The issuance of convertible preferred stock was noted only in 2023 at 3.59%, introducing a new element to the capital structure.
Overall Capital Structure
The total liabilities and shareholders’ equity ratio consistently sums to 100%, yet the internal composition demonstrates a clear movement toward equity financing with increased shareholders’ equity proportion and a reduced reliance on long-term debt. The rise in current liabilities alongside the reduction in long-term debt suggests a shift towards shorter-term obligations. The appearance of convertible preferred stock in the latest period indicates a possible new financing strategy.