Operating Profit Margin
since 2005
Calculation
Western Digital Corp., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Revenue, net1 | |
|---|---|---|---|---|---|---|---|
| Jun 30, 2023 | -10.43% | = | 100 | × | (1,285) | ÷ | 12,318) |
| Jul 1, 2022 | 12.72% | = | 100 | × | 2,391) | ÷ | 18,793) |
| Jul 2, 2021 | 7.21% | = | 100 | × | 1,220) | ÷ | 16,922) |
| Jul 3, 2020 | 2.00% | = | 100 | × | 335) | ÷ | 16,736) |
| Jun 28, 2019 | 0.53% | = | 100 | × | 87) | ÷ | 16,569) |
| Jun 29, 2018 | 17.52% | = | 100 | × | 3,617) | ÷ | 20,647) |
| Jun 30, 2017 | 10.23% | = | 100 | × | 1,954) | ÷ | 19,093) |
| Jul 1, 2016 | 3.59% | = | 100 | × | 466) | ÷ | 12,994) |
| Jul 3, 2015 | 11.06% | = | 100 | × | 1,611) | ÷ | 14,572) |
| Jun 27, 2014 | 11.84% | = | 100 | × | 1,791) | ÷ | 15,130) |
| Jun 28, 2013 | 8.25% | = | 100 | × | 1,266) | ÷ | 15,351) |
| Jun 29, 2012 | 14.19% | = | 100 | × | 1,771) | ÷ | 12,478) |
| Jul 1, 2011 | 8.20% | = | 100 | × | 781) | ÷ | 9,526) |
| Jul 2, 2010 | 15.48% | = | 100 | × | 1,525) | ÷ | 9,850) |
| Jul 3, 2009 | 6.96% | = | 100 | × | 519) | ÷ | 7,453) |
| Jun 27, 2008 | 12.46% | = | 100 | × | 1,006) | ÷ | 8,074) |
| Jun 29, 2007 | 7.59% | = | 100 | × | 415) | ÷ | 5,468) |
| Jun 30, 2006 | 8.43% | = | 100 | × | 366) | ÷ | 4,341) |
| Jul 1, 2005 | 5.41% | = | 100 | × | 197) | ÷ | 3,639) |
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 operating profit margin exhibits significant volatility over the analyzed period, characterized by cyclical peaks and sharp contractions. While the organization maintained positive margins for the majority of the timeframe, the trajectory concludes with a substantial transition into negative profitability.
- Long-term Margin Trends
- Between 2005 and 2018, the operating profit margin demonstrated a pattern of inconsistent growth. Initial margins rose from 5.41% in 2005 to a peak of 15.48% in 2010. This was followed by a period of instability where margins fluctuated significantly, reaching a low of 3.59% in 2016 before ascending to a historical maximum of 17.52% in 2018.
- Revenue and Profitability Correlation
- Revenue growth generally scaled from 3.6 billion USD in 2005 to a peak of 20.6 billion USD in 2018. However, the operating margin did not scale linearly with revenue, indicating that operational costs and external market pressures exerted significant influence on profitability regardless of the total volume of net revenue.
- Recent Performance and Contraction
- A severe erosion of profitability occurred in 2019, with the operating profit margin collapsing to 0.53%. Although a gradual recovery trend was observed from 2020 through 2022, with margins climbing back to 12.72%, this recovery was short-lived. In 2023, the margin entered negative territory for the first time in the recorded period, falling to -10.43% alongside an operating loss of 1.28 billion USD and a marked decrease in net revenue to 12.3 billion USD.
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Comparison to Competitors
Western Digital Corp., operating profit margin, 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 | -10.43% | 29.82% | 38.52% | 26.37% | 5.64% | -6.55% | 10.68% |
| Jul 1, 2022 | 12.72% | 30.29% | 34.86% | 27.09% | 4.60% | 17.71% | 6.45% |
| Jul 2, 2021 | 7.21% | 29.78% | 31.37% | 25.76% | 5.46% | 30.24% | 3.48% |
| Jul 3, 2020 | 2.00% | 24.15% | 30.19% | 27.63% | 2.85% | 12.16% | 2.57% |
| Jun 28, 2019 | 0.53% | 24.57% | 33.42% | 27.39% | -0.21% | -1.38% | 2.78% |
| Jun 29, 2018 | 17.52% | 26.69% | 12.71% | 24.95% | — | 11.21% | 2.82% |
| Jun 30, 2017 | 10.23% | 26.76% | 28.57% | 24.94% | — | 4.75% | 3.82% |
| Jul 1, 2016 | 3.59% | 27.84% | 21.56% | 25.71% | — | 1.27% | 4.82% |
| Jul 3, 2015 | 11.06% | 30.48% | 17.83% | 21.91% | — | -2.80% | 7.37% |
| Jun 27, 2014 | 11.84% | 28.72% | 21.49% | 19.82% | — | — | 5.47% |
| Jun 28, 2013 | 8.25% | 28.67% | — | 23.03% | — | — | 2.34% |
| Jun 29, 2012 | 14.19% | 35.30% | — | 21.85% | — | — | 4.54% |
| Jul 1, 2011 | 8.20% | 31.22% | — | 17.76% | — | — | 6.23% |
| Jul 2, 2010 | 15.48% | 28.19% | — | 22.89% | — | — | 5.65% |
| Jul 3, 2009 | 6.96% | 20.96% | — | 20.27% | — | — | 4.60% |
| Jun 27, 2008 | 12.46% | 19.32% | — | 23.88% | — | — | 7.45% |
| Jun 29, 2007 | 7.59% | 18.37% | — | 24.69% | — | — | 7.11% |
| Jun 30, 2006 | 8.43% | 12.70% | — | 24.56% | — | — | — |
| Jul 1, 2005 | 5.41% | 11.84% | — | 29.90% | — | — | — |
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).