Return on Assets (ROA)
since 2005
Calculation
Western Digital Corp., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss)1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Jun 30, 2023 | -6.98% | = | 100 | × | (1,706) | ÷ | 24,429) |
| Jul 1, 2022 | 5.71% | = | 100 | × | 1,500) | ÷ | 26,259) |
| Jul 2, 2021 | 3.14% | = | 100 | × | 821) | ÷ | 26,132) |
| Jul 3, 2020 | -0.97% | = | 100 | × | (250) | ÷ | 25,662) |
| Jun 28, 2019 | -2.86% | = | 100 | × | (754) | ÷ | 26,370) |
| Jun 29, 2018 | 2.31% | = | 100 | × | 675) | ÷ | 29,235) |
| Jun 30, 2017 | 1.33% | = | 100 | × | 397) | ÷ | 29,860) |
| Jul 1, 2016 | 0.74% | = | 100 | × | 242) | ÷ | 32,862) |
| Jul 3, 2015 | 9.65% | = | 100 | × | 1,465) | ÷ | 15,181) |
| Jun 27, 2014 | 10.43% | = | 100 | × | 1,617) | ÷ | 15,499) |
| Jun 28, 2013 | 6.98% | = | 100 | × | 980) | ÷ | 14,036) |
| Jun 29, 2012 | 11.35% | = | 100 | × | 1,612) | ÷ | 14,206) |
| Jul 1, 2011 | 8.94% | = | 100 | × | 726) | ÷ | 8,118) |
| Jul 2, 2010 | 18.86% | = | 100 | × | 1,382) | ÷ | 7,328) |
| Jul 3, 2009 | 8.88% | = | 100 | × | 470) | ÷ | 5,291) |
| Jun 27, 2008 | 17.78% | = | 100 | × | 867) | ÷ | 4,875) |
| Jun 29, 2007 | 19.44% | = | 100 | × | 564) | ÷ | 2,901) |
| Jun 30, 2006 | 19.03% | = | 100 | × | 395) | ÷ | 2,073) |
| Jul 1, 2005 | 12.49% | = | 100 | × | 198) | ÷ | 1,589) |
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 trajectory from 2005 to 2023 reveals a significant transition in asset efficiency, characterized by an initial period of high returns followed by a prolonged decline and increased volatility coinciding with a massive expansion of the balance sheet.
- Initial High-Efficiency Phase (2005–2010)
- During this period, return on assets (ROA) remained robust, peaking at 19.44% in 2007. Despite a temporary dip to 8.88% in 2009, the company maintained strong profitability relative to its asset base, with net income growing from 198 million dollars to 1,382 million dollars by 2010.
- Asset Expansion and Margin Compression (2011–2016)
- A fundamental shift occurred between 2011 and 2016. Total assets expanded aggressively, increasing from approximately 8.1 billion dollars in 2011 to a peak of 32.8 billion dollars in 2016. This rapid growth in the asset base outpaced net income growth, resulting in a severe dilution of ROA, which plummeted from 8.94% in 2011 to 0.74% in 2016.
- Period of Instability and Negative Returns (2017–2023)
- The final period is marked by significant volatility and an inability to sustain positive returns. ROA fluctuated at low levels before entering negative territory in 2019 (-2.86%) and 2020 (-0.97%). Although a recovery occurred in 2021 and 2022, reaching a high of 5.71%, the trend reversed sharply in 2023. The most significant decline in efficiency was recorded in 2023, with ROA falling to -6.98% following a net loss of 1.7 billion dollars.
Overall, the long-term trend indicates a systemic decline in the ability to generate profit from the company's assets. The transition from a lean asset structure with high returns to a capital-intensive structure with inconsistent profitability is evident in the sustained lower ROA percentages observed after 2015.
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Comparison to Competitors
Western Digital Corp., ROA, 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 | -6.98% | 27.51% | 20.98% | 12.38% | 2.73% | -2.84% | 17.42% |
| Jul 1, 2022 | 5.71% | 28.29% | 19.96% | 12.57% | 6.00% | 4.78% | 8.90% |
| Jul 2, 2021 | 3.14% | 26.97% | 14.66% | 10.86% | 2.63% | 11.19% | 4.99% |
| Jul 3, 2020 | -0.97% | 17.73% | 13.39% | 11.82% | 3.88% | 4.12% | 4.39% |
| Jun 28, 2019 | -2.86% | 16.32% | 20.54% | 11.88% | -2.07% | -1.34% | 4.27% |
| Jun 29, 2018 | 2.31% | 16.28% | 10.65% | 0.10% | — | 15.69% | 2.61% |
| Jun 30, 2017 | 1.33% | 12.88% | 17.20% | 7.40% | — | -8.31% | 4.41% |
| Jul 1, 2016 | 0.74% | 14.20% | 10.65% | 8.83% | — | 1.28% | 6.18% |
| Jul 3, 2015 | 9.65% | 18.38% | 10.44% | 7.91% | — | -0.66% | 9.35% |
| Jun 27, 2014 | 10.43% | 17.04% | 10.71% | 7.47% | — | — | 6.80% |
| Jun 28, 2013 | 6.98% | 17.89% | — | 9.87% | — | — | 3.37% |
| Jun 29, 2012 | 11.35% | 23.70% | — | 8.76% | — | — | 5.07% |
| Jul 1, 2011 | 8.94% | 22.28% | — | 7.45% | — | — | 8.66% |
| Jul 2, 2010 | 18.86% | 18.64% | — | 9.57% | — | — | 7.26% |
| Jul 3, 2009 | 8.88% | 10.59% | — | 9.00% | — | — | 5.69% |
| Jun 27, 2008 | 17.78% | 12.22% | — | 13.71% | — | — | 9.61% |
| Jun 29, 2007 | 19.44% | 13.79% | — | 13.75% | — | — | 9.41% |
| Jun 30, 2006 | 19.03% | 11.56% | — | 12.88% | — | — | — |
| Jul 1, 2005 | 12.49% | 11.56% | — | 16.94% | — | — | — |
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., ROA, long-term trends, comparison to sector (technology hardware & equipment)
| Western Digital Corp. | Technology Hardware & Equipment | |
|---|---|---|
| Jun 30, 2023 | -6.98% | 20.39% |
| Jul 1, 2022 | 5.71% | 21.50% |
| Jul 2, 2021 | 3.14% | 18.83% |
| Jul 3, 2020 | -0.97% | 13.53% |
| Jun 28, 2019 | -2.86% | 11.76% |
| Jun 29, 2018 | 2.31% | 12.53% |
| Jun 30, 2017 | 1.33% | 11.43% |
| Jul 1, 2016 | 0.74% | 12.68% |
| Jul 3, 2015 | 9.65% | 15.39% |
| Jun 27, 2014 | 10.43% | 14.03% |
| Jun 28, 2013 | 6.98% | 15.23% |
| Jun 29, 2012 | 11.35% | 18.55% |
| Jul 1, 2011 | 8.94% | 15.91% |
| Jul 2, 2010 | 18.86% | 13.92% |
| Jul 3, 2009 | 8.88% | 9.70% |
| Jun 27, 2008 | 17.78% | 13.10% |
| Jun 29, 2007 | 19.44% | 13.75% |
| Jun 30, 2006 | 19.03% | 12.51% |
| Jul 1, 2005 | 12.49% | 15.57% |
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., ROA, long-term trends, comparison to industry (information technology)
| Western Digital Corp. | Information Technology | |
|---|---|---|
| Jun 30, 2023 | -6.98% | 12.34% |
| Jul 1, 2022 | 5.71% | 14.33% |
| Jul 2, 2021 | 3.14% | 14.52% |
| Jul 3, 2020 | -0.97% | 11.46% |
| Jun 28, 2019 | -2.86% | 11.67% |
| Jun 29, 2018 | 2.31% | 10.94% |
| Jun 30, 2017 | 1.33% | 9.00% |
| Jul 1, 2016 | 0.74% | 9.68% |
| Jul 3, 2015 | 9.65% | 11.51% |
| Jun 27, 2014 | 10.43% | 12.33% |
| Jun 28, 2013 | 6.98% | 13.22% |
| Jun 29, 2012 | 11.35% | 14.06% |
| Jul 1, 2011 | 8.94% | 15.11% |
| Jul 2, 2010 | 18.86% | 14.45% |
| Jul 3, 2009 | 8.88% | 10.04% |
| Jun 27, 2008 | 17.78% | 11.87% |
| Jun 29, 2007 | 19.44% | 11.93% |
| Jun 30, 2006 | 19.03% | 12.20% |
| Jul 1, 2005 | 12.49% | 12.71% |
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).