Return on Equity (ROE)
since 2005
Calculation
Western Digital Corp., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Jun 30, 2023 | -14.55% | = | 100 | × | (1,706) | ÷ | 11,723) |
| Jul 1, 2022 | 12.27% | = | 100 | × | 1,500) | ÷ | 12,221) |
| Jul 2, 2021 | 7.66% | = | 100 | × | 821) | ÷ | 10,721) |
| Jul 3, 2020 | -2.62% | = | 100 | × | (250) | ÷ | 9,551) |
| Jun 28, 2019 | -7.56% | = | 100 | × | (754) | ÷ | 9,967) |
| Jun 29, 2018 | 5.85% | = | 100 | × | 675) | ÷ | 11,531) |
| Jun 30, 2017 | 3.48% | = | 100 | × | 397) | ÷ | 11,418) |
| Jul 1, 2016 | 2.17% | = | 100 | × | 242) | ÷ | 11,145) |
| Jul 3, 2015 | 15.89% | = | 100 | × | 1,465) | ÷ | 9,219) |
| Jun 27, 2014 | 18.29% | = | 100 | × | 1,617) | ÷ | 8,842) |
| Jun 28, 2013 | 12.42% | = | 100 | × | 980) | ÷ | 7,893) |
| Jun 29, 2012 | 21.02% | = | 100 | × | 1,612) | ÷ | 7,669) |
| Jul 1, 2011 | 13.23% | = | 100 | × | 726) | ÷ | 5,488) |
| Jul 2, 2010 | 29.35% | = | 100 | × | 1,382) | ÷ | 4,709) |
| Jul 3, 2009 | 14.72% | = | 100 | × | 470) | ÷ | 3,192) |
| Jun 27, 2008 | 32.16% | = | 100 | × | 867) | ÷ | 2,696) |
| Jun 29, 2007 | 32.87% | = | 100 | × | 564) | ÷ | 1,716) |
| Jun 30, 2006 | 34.10% | = | 100 | × | 395) | ÷ | 1,157) |
| Jul 1, 2005 | 28.26% | = | 100 | × | 198) | ÷ | 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 trajectory from 2005 to 2023 is characterized by a long-term decline in Return on Equity (ROE), transitioning from a period of high capital efficiency to a phase of significant volatility and periodic negative returns. This decline is driven by a combination of fluctuating net income and a substantial, continuous increase in shareholders' equity.
- High Efficiency Phase (2005–2008)
- During this initial period, ROE remained consistently strong, peaking at 34.10% in 2006. The company demonstrated an ability to generate high returns relative to its equity base, which grew from 702 million to nearly 2.7 billion US dollars while maintaining net income growth.
- Volatility and Equity Expansion (2009–2015)
- A trend of increased volatility emerged, with ROE fluctuating between a high of 29.35% in 2010 and a low of 12.42% in 2013. During this interval, shareholders' equity expanded rapidly, rising from 3.19 billion to 9.22 billion US dollars. The growth in the equity denominator outpaced the growth in net income, leading to a general compression of the ROE percentage.
- Structural Decline and Profitability Instability (2016–2023)
- The most recent period is marked by a sharp deterioration in returns. ROE dropped to low single digits in 2016 and 2017, before falling into negative territory in 2019 (-7.56%) and 2020 (-2.62%) due to net losses. While a recovery occurred between 2021 and 2022, reaching 12.27%, this was reversed in 2023. The final year analyzed shows a significant drop to -14.55%, corresponding to a net loss of 1.706 billion US dollars against a shareholders' equity base of 11.723 billion US dollars.
Overall, the data indicates a systemic shift in the company's financial profile. The early years were defined by aggressive return generation, whereas the latter years show an inability to maintain consistent profitability relative to the expanded capital base, resulting in an unstable and ultimately negative return for shareholders by 2023.
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Comparison to Competitors
Western Digital Corp., ROE, 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 | -14.55% | 156.08% | 28.91% | 28.44% | — | -9.71% | 32.45% |
| Jul 1, 2022 | 12.27% | 196.96% | 27.68% | 29.70% | — | 10.61% | 20.00% |
| Jul 2, 2021 | 7.66% | 150.07% | 21.13% | 25.66% | 131.10% | 20.14% | 10.20% |
| Jul 3, 2020 | -2.62% | 87.87% | 19.11% | 29.57% | — | 7.75% | 7.91% |
| Jun 28, 2019 | -7.56% | 61.06% | 29.71% | 34.62% | — | -2.43% | 7.64% |
| Jun 29, 2018 | 5.85% | 55.56% | 15.31% | 0.25% | — | 26.79% | 5.47% |
| Jun 30, 2017 | 3.48% | 36.07% | 25.46% | 14.53% | — | -16.56% | 8.64% |
| Jul 1, 2016 | 2.17% | 35.62% | 16.63% | 16.89% | — | 1.87% | 9.99% |
| Jul 3, 2015 | 15.89% | 44.74% | 15.37% | 15.04% | — | -0.89% | 16.46% |
| Jun 27, 2014 | 18.29% | 35.42% | 15.63% | 13.86% | — | — | 11.55% |
| Jun 28, 2013 | 12.42% | 29.98% | — | 16.89% | — | — | 5.70% |
| Jun 29, 2012 | 21.02% | 35.30% | — | 15.68% | — | — | 8.82% |
| Jul 1, 2011 | 13.23% | 33.83% | — | 13.74% | — | — | 14.00% |
| Jul 2, 2010 | 29.35% | 29.32% | — | 17.55% | — | — | 11.98% |
| Jul 3, 2009 | 14.72% | 20.49% | — | 15.87% | — | — | 9.02% |
| Jun 27, 2008 | 32.16% | 22.99% | — | 23.44% | — | — | 16.74% |
| Jun 29, 2007 | 32.87% | 24.06% | — | 23.29% | — | — | 16.69% |
| Jun 30, 2006 | 34.10% | 19.92% | — | 23.34% | — | — | — |
| Jul 1, 2005 | 28.26% | 17.88% | — | 24.77% | — | — | — |
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., ROE, long-term trends, comparison to sector (technology hardware & equipment)
| Western Digital Corp. | Technology Hardware & Equipment | |
|---|---|---|
| Jun 30, 2023 | -14.55% | 100.63% |
| Jul 1, 2022 | 12.27% | 122.76% |
| Jul 2, 2021 | 7.66% | 96.47% |
| Jul 3, 2020 | -2.62% | 68.72% |
| Jun 28, 2019 | -7.56% | 52.95% |
| Jun 29, 2018 | 5.85% | 39.07% |
| Jun 30, 2017 | 3.48% | 28.71% |
| Jul 1, 2016 | 2.17% | 29.20% |
| Jul 3, 2015 | 15.89% | 34.61% |
| Jun 27, 2014 | 18.29% | 28.07% |
| Jun 28, 2013 | 12.42% | 25.70% |
| Jun 29, 2012 | 21.02% | 29.32% |
| Jul 1, 2011 | 13.23% | 26.14% |
| Jul 2, 2010 | 29.35% | 23.63% |
| Jul 3, 2009 | 14.72% | 17.78% |
| Jun 27, 2008 | 32.16% | 23.25% |
| Jun 29, 2007 | 32.87% | 23.52% |
| Jun 30, 2006 | 34.10% | 22.33% |
| Jul 1, 2005 | 28.26% | 23.09% |
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., ROE, long-term trends, comparison to industry (information technology)
| Western Digital Corp. | Information Technology | |
|---|---|---|
| Jun 30, 2023 | -14.55% | 31.26% |
| Jul 1, 2022 | 12.27% | 38.03% |
| Jul 2, 2021 | 7.66% | 41.64% |
| Jul 3, 2020 | -2.62% | 35.38% |
| Jun 28, 2019 | -7.56% | 35.94% |
| Jun 29, 2018 | 5.85% | 30.23% |
| Jun 30, 2017 | 3.48% | 23.19% |
| Jul 1, 2016 | 2.17% | 23.00% |
| Jul 3, 2015 | 15.89% | 25.97% |
| Jun 27, 2014 | 18.29% | 25.43% |
| Jun 28, 2013 | 12.42% | 24.73% |
| Jun 29, 2012 | 21.02% | 26.09% |
| Jul 1, 2011 | 13.23% | 29.03% |
| Jul 2, 2010 | 29.35% | 27.62% |
| Jul 3, 2009 | 14.72% | 20.05% |
| Jun 27, 2008 | 32.16% | 25.24% |
| Jun 29, 2007 | 32.87% | 23.67% |
| Jun 30, 2006 | 34.10% | 22.58% |
| Jul 1, 2005 | 28.26% | 21.92% |
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).