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
The financial data reveals three distinct phases of capital structure management, characterized by an initial period of minimal leverage, a period of rapid debt accumulation, and a subsequent phase of systematic deleveraging.
- Conservative Leverage Phase (2005–2011)
- During this period, a conservative approach to financing is observed. The debt-to-equity ratio remained consistently low, fluctuating between a minimum of 0.01 and a maximum of 0.19. Shareholders' equity grew steadily from $702 million in 2005 to $5.49 billion in 2011, while long-term debt remained relatively insignificant, never exceeding $510 million during this timeframe.
- Rapid Leverage Expansion (2012–2016)
- A significant shift in the capital structure occurred starting in 2012, marked by a substantial increase in borrowed funds. Long-term debt rose to $2.19 billion in 2012 and peaked at $16.99 billion in 2016. This expansion caused the debt-to-equity ratio to surge from 0.28 in 2014 to a peak of 1.52 in 2016, indicating a period where debt obligations exceeded total shareholders' equity.
- Deleveraging and Stabilization (2017–2023)
- From 2017 through 2023, a sustained downward trend in total debt is evident. Long-term debt was reduced from the 2016 peak to $7.07 billion by June 30, 2023. Throughout this period, shareholders' equity remained relatively stable, fluctuating between approximately $9.5 billion and $12.2 billion. As a result, the debt-to-equity ratio declined steadily from 1.15 in 2017 to 0.60 in 2023, reflecting a strategic reduction in financial leverage and a return toward a more balanced balance sheet.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
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. | Lumentum Holdings Inc. | Super Micro Computer Inc. | |
|---|---|---|---|---|---|---|---|
| Jun 30, 2023 | 0.60 | 1.79 | 0.00 | 0.19 | — | 0.23 | 0.15 |
| Jul 1, 2022 | 0.57 | 2.37 | 0.00 | 0.24 | — | 1.00 | 0.42 |
| Jul 2, 2021 | 0.81 | 1.98 | 0.00 | 0.28 | 19.36 | 0.60 | 0.09 |
| Jul 3, 2020 | 1.00 | 1.72 | 0.00 | 0.38 | — | 0.64 | 0.03 |
| Jun 28, 2019 | 1.06 | 1.19 | 0.00 | 0.73 | — | 0.56 | 0.03 |
| Jun 29, 2018 | 0.97 | 1.07 | 0.02 | 0.59 | — | 0.36 | 0.14 |
| Jun 30, 2017 | 1.15 | 0.86 | 0.02 | 0.51 | — | 0.51 | 0.21 |
| Jul 1, 2016 | 1.52 | 0.68 | 0.04 | 0.45 | — | 0.00 | 0.13 |
| Jul 3, 2015 | 0.28 | 0.54 | 0.05 | 0.42 | — | 0.00 | 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 | 1.31 |
| Jul 1, 2022 | 0.57 | 1.64 |
| Jul 2, 2021 | 0.81 | 1.63 |
| Jul 3, 2020 | 1.00 | 1.67 |
| Jun 28, 2019 | 1.06 | 1.51 |
| 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 | 0.65 |
| Jul 1, 2022 | 0.57 | 0.70 |
| Jul 2, 2021 | 0.81 | 0.82 |
| Jul 3, 2020 | 1.00 | 0.95 |
| Jun 28, 2019 | 1.06 | 0.97 |
| Jun 29, 2018 | 0.97 | 0.82 |
| Jun 30, 2017 | 1.15 | 0.80 |
| Jul 1, 2016 | 1.52 | 0.65 |
| Jul 3, 2015 | 0.28 | 0.56 |
| Jun 27, 2014 | 0.28 | 0.38 |
| Jun 28, 2013 | 0.25 | 0.28 |
| Jun 29, 2012 | 0.28 | 0.24 |
| Jul 1, 2011 | 0.05 | 0.27 |
| Jul 2, 2010 | 0.08 | 0.24 |
| Jul 3, 2009 | 0.15 | 0.25 |
| Jun 27, 2008 | 0.19 | 0.28 |
| Jun 29, 2007 | 0.01 | 0.26 |
| Jun 30, 2006 | 0.04 | 0.19 |
| 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).