Debt to Equity
since 2005
Calculation
Western Digital Corp., debt to equity, long-term trends, calculation
| Debt to equity | = | Long-term debt, including current portion1 | ÷ | Shareholders’ equity1 | |
|---|---|---|---|---|---|
| Jun 30, 2023 | 0.60 | = | 7,070) | ÷ | 11,723) |
| Jul 1, 2022 | 0.57 | = | 7,022) | ÷ | 12,221) |
| Jul 2, 2021 | 0.81 | = | 8,725) | ÷ | 10,721) |
| Jul 3, 2020 | 1.00 | = | 9,575) | ÷ | 9,551) |
| Jun 28, 2019 | 1.06 | = | 10,522) | ÷ | 9,967) |
| Jun 29, 2018 | 0.97 | = | 11,172) | ÷ | 11,531) |
| Jun 30, 2017 | 1.15 | = | 13,151) | ÷ | 11,418) |
| Jul 1, 2016 | 1.52 | = | 16,994) | ÷ | 11,145) |
| Jul 3, 2015 | 0.28 | = | 2,567) | ÷ | 9,219) |
| Jun 27, 2014 | 0.28 | = | 2,438) | ÷ | 8,842) |
| Jun 28, 2013 | 0.25 | = | 1,955) | ÷ | 7,893) |
| Jun 29, 2012 | 0.28 | = | 2,185) | ÷ | 7,669) |
| Jul 1, 2011 | 0.05 | = | 294) | ÷ | 5,488) |
| Jul 2, 2010 | 0.08 | = | 400) | ÷ | 4,709) |
| Jul 3, 2009 | 0.15 | = | 482) | ÷ | 3,192) |
| Jun 27, 2008 | 0.19 | = | 509) | ÷ | 2,696) |
| Jun 29, 2007 | 0.01 | = | 22) | ÷ | 1,716) |
| Jun 30, 2006 | 0.04 | = | 44) | ÷ | 1,157) |
| Jul 1, 2005 | 0.08 | = | 53) | ÷ | 702) |
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), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-07-01), 10-K (reporting date: 2015-07-03), 10-K (reporting date: 2014-06-27), 10-K (reporting date: 2013-06-28), 10-K (reporting date: 2012-06-29), 10-K (reporting date: 2011-07-01), 10-K (reporting date: 2010-07-02), 10-K (reporting date: 2009-07-03), 10-K (reporting date: 2008-06-27), 10-K (reporting date: 2007-06-29), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-07-01).
1 US$ in millions
- Long-term Debt Trend
- The long-term debt exhibited significant fluctuations across the observed periods. Initially, debt levels remained relatively low and stable, ranging from US$22 million to US$53 million between 2005 and 2007. A sharp increase was noted starting in 2008, with debt rising dramatically to US$2,185 million in 2012 and peaking at US$16,994 million in 2016. Subsequently, a sustained decline occurred from 2017 onward, reducing the debt to approximately US$7,070 million by mid-2023.
- Shareholders’ Equity Trend
- Shareholders’ equity consistently grew over the entire period, starting from US$702 million in 2005 to a peak of US$12,221 million in 2022. There was a slight decrease in 2019 and 2020, followed by recovery in the subsequent years. This trend indicates a general strengthening of the equity base despite some minor contractions.
- Debt to Equity Ratio Analysis
- The debt to equity ratio remained very low in the early years, fluctuating between 0.01 and 0.19 until around 2011. However, there was a notable spike in 2016 to 1.52, reflecting the substantial increase in long-term debt relative to equity during that year. Following this peak, the ratio improved steadily, dropping to 0.60 by 2023. This indicates that although debt levels were high during the mid-2010s, the company has been actively managing its leverage to improve the balance structure in recent years.
- Overall Insights
- The financial leverage increased significantly around the mid-2010s, as evidenced by the surge in long-term debt and the corresponding rise in the debt to equity ratio. Despite this, shareholders’ equity exhibited steady long-term growth, reflecting ongoing accumulation of net assets. The subsequent reduction in debt levels and improvement in the debt to equity ratio suggest a strategic focus on deleveraging and strengthening the financial position in recent years. This balance between debt and equity indicates a period of adjustment with an emphasis on improving financial stability moving forward.
Comparison to Competitors
Western Digital Corp., debt to equity, long-term trends, comparison to competitors
| Western Digital Corp. | Apple Inc. | Arista Networks Inc. | Cisco Systems Inc. | Dell Technologies Inc. | Super Micro Computer Inc. | |
|---|---|---|---|---|---|---|
| Jun 30, 2023 | 0.60 | 1.79 | 0.00 | 0.19 | — | 0.15 |
| Jul 1, 2022 | 0.57 | 2.37 | 0.00 | 0.24 | — | 0.42 |
| Jul 2, 2021 | 0.81 | 1.98 | 0.00 | 0.28 | 19.36 | 0.09 |
| Jul 3, 2020 | 1.00 | 1.72 | 0.00 | 0.38 | — | 0.03 |
| Jun 28, 2019 | 1.06 | 1.19 | 0.00 | 0.73 | — | 0.03 |
| Jun 29, 2018 | 0.97 | 1.07 | 0.02 | 0.59 | — | 0.14 |
| Jun 30, 2017 | 1.15 | 0.86 | 0.02 | 0.51 | — | 0.21 |
| Jul 1, 2016 | 1.52 | 0.68 | 0.04 | 0.45 | — | 0.13 |
| Jul 3, 2015 | 0.28 | 0.54 | 0.05 | 0.42 | — | 0.15 |
| Jun 27, 2014 | 0.28 | 0.32 | 0.08 | 0.37 | — | 0.10 |
| Jun 28, 2013 | 0.25 | 0.14 | — | 0.27 | — | 0.09 |
| Jun 29, 2012 | 0.28 | 0.00 | — | 0.32 | — | 0.10 |
| Jul 1, 2011 | 0.05 | 0.00 | — | 0.36 | — | 0.10 |
| Jul 2, 2010 | 0.08 | 0.00 | — | 0.35 | — | 0.08 |
| Jul 3, 2009 | 0.15 | 0.00 | — | 0.27 | — | 0.06 |
| Jun 27, 2008 | 0.19 | 0.00 | — | 0.20 | — | 0.07 |
| Jun 29, 2007 | 0.01 | 0.00 | — | 0.20 | — | 0.10 |
| Jun 30, 2006 | 0.04 | 0.00 | — | 0.26 | — | — |
| Jul 1, 2005 | 0.08 | 0.00 | — | 0.00 | — | — |
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), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-07-01), 10-K (reporting date: 2015-07-03), 10-K (reporting date: 2014-06-27), 10-K (reporting date: 2013-06-28), 10-K (reporting date: 2012-06-29), 10-K (reporting date: 2011-07-01), 10-K (reporting date: 2010-07-02), 10-K (reporting date: 2009-07-03), 10-K (reporting date: 2008-06-27), 10-K (reporting date: 2007-06-29), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-07-01).
Comparison to Sector (Technology Hardware & Equipment)
Western Digital Corp., debt to equity, long-term trends, comparison to sector (technology hardware & equipment)
| Western Digital Corp. | Technology Hardware & Equipment | |
|---|---|---|
| Jun 30, 2023 | 0.60 | 1.33 |
| Jul 1, 2022 | 0.57 | 1.65 |
| Jul 2, 2021 | 0.81 | 1.65 |
| Jul 3, 2020 | 1.00 | 1.69 |
| Jun 28, 2019 | 1.06 | 1.53 |
| Jun 29, 2018 | 0.97 | 0.91 |
| Jun 30, 2017 | 1.15 | 0.74 |
| Jul 1, 2016 | 1.52 | 0.60 |
| Jul 3, 2015 | 0.28 | 0.50 |
| Jun 27, 2014 | 0.28 | 0.33 |
| Jun 28, 2013 | 0.25 | 0.18 |
| Jun 29, 2012 | 0.28 | 0.10 |
| Jul 1, 2011 | 0.05 | 0.14 |
| Jul 2, 2010 | 0.08 | 0.17 |
| Jul 3, 2009 | 0.15 | 0.15 |
| Jun 27, 2008 | 0.19 | 0.12 |
| Jun 29, 2007 | 0.01 | 0.14 |
| Jun 30, 2006 | 0.04 | 0.19 |
| Jul 1, 2005 | 0.08 | 0.00 |
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), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-07-01), 10-K (reporting date: 2015-07-03), 10-K (reporting date: 2014-06-27), 10-K (reporting date: 2013-06-28), 10-K (reporting date: 2012-06-29), 10-K (reporting date: 2011-07-01), 10-K (reporting date: 2010-07-02), 10-K (reporting date: 2009-07-03), 10-K (reporting date: 2008-06-27), 10-K (reporting date: 2007-06-29), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-07-01).
Comparison to Industry (Information Technology)
Western Digital Corp., debt to equity, long-term trends, comparison to industry (information technology)
| Western Digital Corp. | Information Technology | |
|---|---|---|
| Jun 30, 2023 | 0.60 | 0.66 |
| Jul 1, 2022 | 0.57 | 0.70 |
| Jul 2, 2021 | 0.81 | 0.83 |
| Jul 3, 2020 | 1.00 | 0.97 |
| Jun 28, 2019 | 1.06 | 0.98 |
| Jun 29, 2018 | 0.97 | 0.83 |
| Jun 30, 2017 | 1.15 | 0.81 |
| Jul 1, 2016 | 1.52 | 0.66 |
| Jul 3, 2015 | 0.28 | 0.56 |
| Jun 27, 2014 | 0.28 | 0.39 |
| Jun 28, 2013 | 0.25 | 0.29 |
| Jun 29, 2012 | 0.28 | 0.25 |
| Jul 1, 2011 | 0.05 | 0.27 |
| Jul 2, 2010 | 0.08 | 0.25 |
| Jul 3, 2009 | 0.15 | 0.26 |
| Jun 27, 2008 | 0.19 | 0.29 |
| Jun 29, 2007 | 0.01 | 0.27 |
| Jun 30, 2006 | 0.04 | 0.20 |
| Jul 1, 2005 | 0.08 | 0.15 |
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), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-07-01), 10-K (reporting date: 2015-07-03), 10-K (reporting date: 2014-06-27), 10-K (reporting date: 2013-06-28), 10-K (reporting date: 2012-06-29), 10-K (reporting date: 2011-07-01), 10-K (reporting date: 2010-07-02), 10-K (reporting date: 2009-07-03), 10-K (reporting date: 2008-06-27), 10-K (reporting date: 2007-06-29), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-07-01).