Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Western Digital Corp., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-12-29), 10-Q (reporting date: 2023-09-29), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-30), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-K (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-Q (reporting date: 2021-01-01), 10-Q (reporting date: 2020-10-02), 10-K (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03), 10-Q (reporting date: 2020-01-03), 10-Q (reporting date: 2019-10-04), 10-K (reporting date: 2019-06-28), 10-Q (reporting date: 2019-03-29), 10-Q (reporting date: 2018-12-28), 10-Q (reporting date: 2018-09-28).
The analysis of the quarterly financial data reveals several distinct trends in profitability and efficiency metrics over the examined periods.
- Gross Profit Margin
- The gross profit margin shows a marked decline from 36.38% in late September 2018 to a low of approximately 17.57% during early 2020, indicating increasing cost pressures or reduced pricing power at that time. Following this downturn, margins gradually improved, peaking around 31.26% in mid-2022. However, a significant downturn occurred thereafter, with the margin declining sharply to around 8.61% by the end of 2023. This suggests recent challenges in cost management or product pricing that have adversely affected gross profitability.
- Operating Profit Margin
- The operating profit margin follows a similar pattern, with a substantial decline from 16.58% in late 2018 to negative values in early 2020, reaching a trough near -5.48%. This reflects periods of operational losses or high operating expenses relative to revenue. A recovery phase ensued, with margins climbing to a peak exceeding 13% in late 2021 and early 2022. Nonetheless, the margin again reversed course sharply in 2023, moving into deep negative territory, nearing -17.13% by year-end. This volatility indicates fluctuating operational efficiency and profitability challenges during recent quarters.
- Net Profit Margin
- Net profit margin demonstrates notable volatility, starting at 2.46% in late 2018, dipping into negative figures around early to mid-2020, with a low near -9.89%. Afterward, a period of recovery is observed with margins climbing to above 10% by early 2022, signifying strong bottom-line performance. However, a sharp decline follows, descending to approximately -20% by the end of 2023. The negative net margins towards the end indicate significant net losses potentially driven by operational difficulties, increased costs, or other non-operating expenses.
- Return on Equity (ROE)
- The ROE pattern aligns closely with net margins, reflecting underlying profitability relative to shareholder equity. The metric fell from positive values near 4.44% in late 2018 to highly negative figures around -16.11% in late 2019 to early 2020. A robust recovery followed, with ROE reaching a maximum over 16% by late 2021 and early 2022, indicating efficient use of equity to generate profits. Subsequently, the ROE plunged below -20% by the end of 2023, highlighting significant losses relative to equity and deteriorated shareholder returns.
- Return on Assets (ROA)
- ROA trends mirror those of ROE and net margins, showing declines from 1.76% to negative territory between late 2018 and early 2020. A modest recovery reached approximately 7.66% around late 2021 to early 2022 before sharply deteriorating to nearly -10% by the close of 2023. This indicates a decline in the company’s effectiveness in utilizing its assets to generate earnings during the latter part of the reviewed period.
In summary, the data reveals initial challenges in profitability with significant declines in all major margins and returns through early 2020. Recovery phases are evident during 2021 and early 2022, reflecting enhanced financial performance and operational efficiency. However, the latter part of the timeline shows a pronounced downturn across all key profitability and efficiency ratios, heralding recent financial difficulties and diminished returns on equity and assets, which may warrant management attention to address underlying causes and restore financial health.
Return on Sales
Return on Investment
Gross Profit Margin
Western Digital Corp., gross profit margin calculation (quarterly data)
| Dec 29, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 30, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | Dec 31, 2021 | Oct 1, 2021 | Jul 2, 2021 | Apr 2, 2021 | Jan 1, 2021 | Oct 2, 2020 | Jul 3, 2020 | Apr 3, 2020 | Jan 3, 2020 | Oct 4, 2019 | Jun 28, 2019 | Mar 29, 2019 | Dec 28, 2018 | Sep 28, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Gross profit | 492) | 99) | 92) | 286) | 528) | 981) | 1,445) | 1,181) | 1,583) | 1,665) | 1,566) | 1,091) | 960) | 904) | 1,083) | 1,005) | 935) | 758) | 465) | 579) | 1,044) | 1,664) | |||||||
| Revenue, net | 3,032) | 2,750) | 2,672) | 2,803) | 3,107) | 3,736) | 4,528) | 4,381) | 4,833) | 5,051) | 4,920) | 4,137) | 3,943) | 3,922) | 4,287) | 4,175) | 4,234) | 4,040) | 3,634) | 3,674) | 4,233) | 5,028) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Gross profit margin1 | 8.61% | 8.87% | 15.32% | 22.86% | 26.25% | 29.69% | 31.26% | 31.25% | 31.18% | 29.26% | 26.72% | 24.79% | 24.21% | 23.63% | 22.59% | 19.67% | 17.57% | 18.27% | 22.64% | 28.47% | 33.45% | 36.38% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Apple Inc. | 45.59% | 45.03% | 44.13% | 43.45% | 43.18% | 43.06% | 43.31% | 43.31% | 43.32% | 43.02% | 41.78% | 41.01% | 39.88% | 38.78% | 38.23% | 38.19% | 38.11% | 37.95% | — | — | — | — | |||||||
| Arista Networks Inc. | 64.01% | 62.94% | 61.95% | 60.76% | 60.18% | 60.27% | 61.07% | 61.82% | 62.77% | 63.64% | 63.80% | 63.95% | 63.87% | 63.72% | — | — | — | — | — | — | — | — | |||||||
| Cisco Systems Inc. | 64.22% | 63.69% | 62.73% | 61.99% | 61.92% | 62.23% | 62.55% | 63.14% | 63.30% | 63.73% | 64.02% | 63.94% | 64.17% | 64.07% | — | — | — | — | — | — | — | — | |||||||
| Dell Technologies Inc. | 23.36% | 22.57% | 22.18% | 21.42% | 20.92% | 21.40% | 21.63% | 24.59% | 27.13% | 29.32% | 31.22% | 31.42% | 31.49% | 31.46% | — | — | — | — | — | — | — | — | |||||||
| Super Micro Computer Inc. | 16.39% | 17.44% | 18.01% | 18.23% | 17.80% | 16.78% | 15.40% | 14.22% | 13.68% | 14.18% | 15.03% | 15.14% | 16.03% | 15.91% | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-12-29), 10-Q (reporting date: 2023-09-29), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-30), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-K (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-Q (reporting date: 2021-01-01), 10-Q (reporting date: 2020-10-02), 10-K (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03), 10-Q (reporting date: 2020-01-03), 10-Q (reporting date: 2019-10-04), 10-K (reporting date: 2019-06-28), 10-Q (reporting date: 2019-03-29), 10-Q (reporting date: 2018-12-28), 10-Q (reporting date: 2018-09-28).
1 Q2 2024 Calculation
Gross profit margin = 100
× (Gross profitQ2 2024
+ Gross profitQ1 2024
+ Gross profitQ4 2023
+ Gross profitQ3 2023)
÷ (Revenue, netQ2 2024
+ Revenue, netQ1 2024
+ Revenue, netQ4 2023
+ Revenue, netQ3 2023)
= 100 × (492 + 99 + 92 + 286)
÷ (3,032 + 2,750 + 2,672 + 2,803)
= 8.61%
2 Click competitor name to see calculations.
- Revenue Trends
- Quarterly net revenue exhibited substantial variability between late 2018 and late 2023. Starting from approximately $5.0 billion in September 2018, revenue declined over the next several quarters, reaching a low around $3.1 billion in early 2023. A slight recovery is observed towards the end of 2023, with revenue increasing back to roughly $3.0 billion. The overall pattern suggests an initial contraction followed by stabilization at a lower revenue level.
- Gross Profit Trends
- Gross profit mirrored the fluctuating revenue, showing a downward trend after late 2018's peak of about $1.7 billion. It reached a trough near $92 million in early 2023 before rebounding to approximately $492 million by the end of 2023. This decline and partial recovery indicates pressure on profitability, possibly related to operational challenges or market dynamics during this period.
- Gross Profit Margin Analysis
- The gross profit margin consistently declined from a high of 36.38% in late 2018 to single-digit percentages by late 2023. Margins decreased sharply in the early period, hitting a low of approximately 8.6% at the end of 2023. Margins showed some improvement mid-2021 and mid-2022, reaching above 31%, yet this was not sustained. The significant compression in gross profit margin suggests increasing cost pressures or reduced pricing power impacting profitability over time.
- Comprehensive Summary
- The financial results indicate a period of declining revenue and compressed gross profit margins, culminating in substantially reduced gross profit dollars by early 2023. While some recovery in revenue and gross profit occurred in the latest quarters, margins remained depressed compared to historical peaks. This pattern points to challenges in maintaining profitability amidst fluctuating sales and indicates the need for continued focus on cost management and operational efficiency to restore previous profit levels.
Operating Profit Margin
Western Digital Corp., operating profit margin calculation (quarterly data)
| Dec 29, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 30, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | Dec 31, 2021 | Oct 1, 2021 | Jul 2, 2021 | Apr 2, 2021 | Jan 1, 2021 | Oct 2, 2020 | Jul 3, 2020 | Apr 3, 2020 | Jan 3, 2020 | Oct 4, 2019 | Jun 28, 2019 | Mar 29, 2019 | Dec 28, 2018 | Sep 28, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Operating income (loss) | (210) | (596) | (650) | (472) | (321) | 158) | 562) | 324) | 727) | 778) | 675) | 317) | 158) | 70) | 261) | 153) | 50) | (129) | (381) | (394) | 176) | 686) | |||||||
| Revenue, net | 3,032) | 2,750) | 2,672) | 2,803) | 3,107) | 3,736) | 4,528) | 4,381) | 4,833) | 5,051) | 4,920) | 4,137) | 3,943) | 3,922) | 4,287) | 4,175) | 4,234) | 4,040) | 3,634) | 3,674) | 4,233) | 5,028) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Operating profit margin1 | -17.13% | -17.99% | -10.43% | -0.52% | 4.59% | 10.13% | 12.72% | 13.05% | 13.18% | 10.68% | 7.21% | 4.95% | 3.93% | 3.21% | 2.00% | -1.91% | -5.48% | -4.67% | 0.53% | 7.26% | 13.51% | 16.58% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Apple Inc. | 30.98% | 30.76% | 29.82% | 29.23% | 29.16% | 29.41% | 30.29% | 30.53% | 30.93% | 30.90% | 29.78% | 28.79% | 27.32% | 25.24% | 24.15% | 24.52% | 24.48% | 24.71% | — | — | — | — | |||||||
| Arista Networks Inc. | 41.23% | 40.01% | 38.52% | 37.29% | 36.12% | 35.71% | 34.86% | 33.69% | 32.55% | 31.56% | 31.37% | 30.79% | 30.76% | 30.72% | — | — | — | — | — | — | — | — | |||||||
| Cisco Systems Inc. | 27.21% | 27.17% | 26.37% | 25.89% | 26.10% | 26.91% | 27.09% | 27.36% | 27.09% | 26.98% | 25.76% | 25.60% | 25.93% | 26.23% | — | — | — | — | — | — | — | — | |||||||
| Dell Technologies Inc. | 5.54% | 5.45% | 5.64% | 5.88% | 5.12% | 4.99% | 4.60% | 5.26% | 5.51% | 5.72% | 5.46% | 4.00% | 3.71% | 3.01% | — | — | — | — | — | — | — | — | |||||||
| Super Micro Computer Inc. | 9.40% | 9.65% | 10.68% | 10.64% | 10.39% | 8.75% | 6.45% | 4.52% | 3.27% | 3.20% | 3.48% | 2.79% | 2.85% | 2.52% | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-12-29), 10-Q (reporting date: 2023-09-29), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-30), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-K (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-Q (reporting date: 2021-01-01), 10-Q (reporting date: 2020-10-02), 10-K (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03), 10-Q (reporting date: 2020-01-03), 10-Q (reporting date: 2019-10-04), 10-K (reporting date: 2019-06-28), 10-Q (reporting date: 2019-03-29), 10-Q (reporting date: 2018-12-28), 10-Q (reporting date: 2018-09-28).
1 Q2 2024 Calculation
Operating profit margin = 100
× (Operating income (loss)Q2 2024
+ Operating income (loss)Q1 2024
+ Operating income (loss)Q4 2023
+ Operating income (loss)Q3 2023)
÷ (Revenue, netQ2 2024
+ Revenue, netQ1 2024
+ Revenue, netQ4 2023
+ Revenue, netQ3 2023)
= 100 × (-210 + -596 + -650 + -472)
÷ (3,032 + 2,750 + 2,672 + 2,803)
= -17.13%
2 Click competitor name to see calculations.
The financial performance exhibits notable fluctuations across the reported periods. Revenues demonstrate a general pattern of decline beginning from higher levels in late 2018 through mid-2020, followed by some recovery through the end of 2021, and then a pronounced decrease again into 2023. Operating income and margins reflect significant volatility, with several quarters showing losses, especially during downturn periods in revenue.
- Revenue Trends
- Net revenue started at a peak of approximately $5.0 billion in the third quarter of 2018, before experiencing a decline to around $3.7 billion by early 2019. After some fluctuation and partial recovery peaking near $5.1 billion in late 2021, revenue once again trended downward, reaching near $2.7 to $3.0 billion in late 2023. This overall cycle suggests sensitivity to market or operational conditions impacting sales volumes or pricing.
- Operating Income (Loss)
- Operating income followed a similar pattern of volatility, with a positive high near $686 million in late 2018, dropping into negative territory in successive quarters through mid-2019. Recovery phases are seen with operating income climbing back above $700 million by late 2021, before falling sharply again in 2022 and throughout 2023. The losses in recent quarters, as deep as approximately $650 million, highlight challenges in cost management or diminished operational efficiency during periods of lower revenue.
- Operating Profit Margin
- The operating profit margin aligns closely with income and revenue trends, starting at a strong 16.58% in late 2018. Margins deteriorated significantly to slight positive or negative levels throughout 2019 and early 2020, before gradually improving again through 2021, with margins reaching over 13% at times. However, margins turned negative once more beginning in late 2022, reaching steep negative levels of over -17% in late 2023, underscoring profitability pressures under reduced sales conditions.
Overall, the data highlight a cyclical pattern in the company’s financial performance characterized by periods of contraction and recovery. The recent quarters reveal substantial operational challenges with declining revenues and deepening losses, indicating an environment where cost control and strategic adjustments may be essential to restoring financial health.
Net Profit Margin
Western Digital Corp., net profit margin calculation (quarterly data)
| Dec 29, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 30, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | Dec 31, 2021 | Oct 1, 2021 | Jul 2, 2021 | Apr 2, 2021 | Jan 1, 2021 | Oct 2, 2020 | Jul 3, 2020 | Apr 3, 2020 | Jan 3, 2020 | Oct 4, 2019 | Jun 28, 2019 | Mar 29, 2019 | Dec 28, 2018 | Sep 28, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income (loss) | (287) | (685) | (715) | (572) | (446) | 27) | 301) | 25) | 564) | 610) | 622) | 197) | 62) | (60) | 148) | 17) | (139) | (276) | (197) | (581) | (487) | 511) | |||||||
| Revenue, net | 3,032) | 2,750) | 2,672) | 2,803) | 3,107) | 3,736) | 4,528) | 4,381) | 4,833) | 5,051) | 4,920) | 4,137) | 3,943) | 3,922) | 4,287) | 4,175) | 4,234) | 4,040) | 3,634) | 3,674) | 4,233) | 5,028) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Net profit margin1 | -20.07% | -21.34% | -13.85% | -4.87% | -0.59% | 5.25% | 7.98% | 9.49% | 10.52% | 8.26% | 4.85% | 2.13% | 1.02% | -0.20% | -1.49% | -3.70% | -7.66% | -9.89% | -4.55% | 1.10% | 4.34% | 2.46% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Apple Inc. | 26.31% | 26.16% | 25.31% | 24.68% | 24.49% | 24.56% | 25.31% | 25.71% | 26.41% | 26.58% | 25.88% | 25.00% | 23.45% | 21.73% | 20.91% | 21.33% | 21.35% | 21.49% | — | — | — | — | |||||||
| Arista Networks Inc. | 39.01% | 37.64% | 35.62% | 33.97% | 32.48% | 31.24% | 30.87% | 29.63% | 29.55% | 29.54% | 28.52% | 28.30% | 27.72% | 27.48% | — | — | — | — | — | — | — | — | |||||||
| Cisco Systems Inc. | 23.49% | 23.40% | 22.13% | 20.89% | 21.26% | 22.00% | 22.91% | 23.28% | 22.94% | 22.44% | 21.26% | 20.92% | 21.09% | 21.76% | — | — | — | — | — | — | — | — | |||||||
| Dell Technologies Inc. | 2.03% | 2.01% | 2.39% | 1.74% | 5.07% | 5.49% | 5.50% | 6.83% | 3.92% | 4.21% | 3.45% | 2.64% | 2.29% | 4.85% | — | — | — | — | — | — | — | — | |||||||
| Super Micro Computer Inc. | 7.92% | 8.29% | 8.98% | 8.93% | 8.70% | 7.38% | 5.49% | 3.96% | 3.00% | 2.89% | 3.14% | 2.69% | 2.71% | 2.56% | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-12-29), 10-Q (reporting date: 2023-09-29), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-30), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-K (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-Q (reporting date: 2021-01-01), 10-Q (reporting date: 2020-10-02), 10-K (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03), 10-Q (reporting date: 2020-01-03), 10-Q (reporting date: 2019-10-04), 10-K (reporting date: 2019-06-28), 10-Q (reporting date: 2019-03-29), 10-Q (reporting date: 2018-12-28), 10-Q (reporting date: 2018-09-28).
1 Q2 2024 Calculation
Net profit margin = 100
× (Net income (loss)Q2 2024
+ Net income (loss)Q1 2024
+ Net income (loss)Q4 2023
+ Net income (loss)Q3 2023)
÷ (Revenue, netQ2 2024
+ Revenue, netQ1 2024
+ Revenue, netQ4 2023
+ Revenue, netQ3 2023)
= 100 × (-287 + -685 + -715 + -572)
÷ (3,032 + 2,750 + 2,672 + 2,803)
= -20.07%
2 Click competitor name to see calculations.
- Revenue Trends
- The revenue exhibited fluctuations over the observed periods. Initially, there was a decline from over 5 billion USD to a low around 3 billion USD during 2022 and into 2023. Notable recovery signs appeared in the final periods with revenue increasing again towards 3 billion USD by the end of the series. This indicates a cyclical pattern with a peak in earlier years, a decline through 2022-2023, followed by a mild recovery.
- Net Income (Loss) Patterns
- Net income revealed considerable volatility throughout the timeline. Early periods showed positive income, but were followed by persistent losses spanning multiple quarters, particularly in 2019 and 2023. Peaks in profitability were observed intermittently in 2021 with notable gains exceeding 600 million USD. However, the trend deteriorated significantly by late 2022 and 2023, with losses deepening up to -715 million USD, signaling challenges in maintaining profitability.
- Net Profit Margin Analysis
- The net profit margin mirrored the net income volatility, displaying a wide range between positive and negative percentages. Positive margins were observed early on and during mid-2021, peaking above 10%. Conversely, sharp negative margins appeared in late 2019 and intensified in 2023, reaching margins lower than -20%. This suggests periods of operational or market difficulties impacting overall profitability and cost structure.
- Overall Financial Performance Insights
- The financial performance over the quarters reflects an environment of instability with significant variance in both revenue and profitability. Revenue declines correspond with periods of net losses and negative profit margins, indicating sales pressure or market challenges. Intermittent recoveries in revenue and profitability suggest attempts at operational adjustments or market rebounds, but sustainability remains uncertain as late-stage data portray renewed declines and losses.
Return on Equity (ROE)
Western Digital Corp., ROE calculation (quarterly data)
| Dec 29, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 30, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | Dec 31, 2021 | Oct 1, 2021 | Jul 2, 2021 | Apr 2, 2021 | Jan 1, 2021 | Oct 2, 2020 | Jul 3, 2020 | Apr 3, 2020 | Jan 3, 2020 | Oct 4, 2019 | Jun 28, 2019 | Mar 29, 2019 | Dec 28, 2018 | Sep 28, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income (loss) | (287) | (685) | (715) | (572) | (446) | 27) | 301) | 25) | 564) | 610) | 622) | 197) | 62) | (60) | 148) | 17) | (139) | (276) | (197) | (581) | (487) | 511) | |||||||
| Shareholders’ equity | 10,944) | 10,989) | 11,723) | 12,487) | 12,115) | 12,107) | 12,221) | 11,984) | 12,018) | 11,361) | 10,721) | 9,949) | 9,829) | 9,576) | 9,551) | 9,243) | 9,379) | 9,566) | 9,967) | 10,214) | 10,912) | 11,375) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROE1 | -20.64% | -22.00% | -14.55% | -5.53% | -0.77% | 7.57% | 12.27% | 15.20% | 16.58% | 13.12% | 7.66% | 3.49% | 1.70% | -0.36% | -2.62% | -6.44% | -12.72% | -16.11% | -7.56% | 1.95% | 7.71% | 4.44% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||||||||
| Apple Inc. | 135.31% | 136.18% | 156.08% | 157.22% | 151.74% | 167.77% | 196.96% | 171.46% | 151.24% | 139.79% | 150.07% | 135.04% | 110.31% | 96.54% | 87.87% | 80.83% | 72.96% | 64.25% | — | — | — | — | |||||||
| Arista Networks Inc. | 29.20% | 29.11% | 28.91% | 29.22% | 29.18% | 28.46% | 27.68% | 26.56% | 25.84% | 22.46% | 21.13% | 20.30% | 19.70% | 19.60% | — | — | — | — | — | — | — | — | |||||||
| Cisco Systems Inc. | 29.06% | 30.04% | 28.44% | 27.12% | 27.25% | 28.56% | 29.70% | 29.72% | 29.94% | 26.69% | 25.66% | 25.41% | 25.89% | 27.42% | — | — | — | — | — | — | — | — | |||||||
| Dell Technologies Inc. | — | — | — | — | — | — | — | 75.81% | 78.28% | 114.54% | 131.10% | 275.31% | — | — | — | — | — | — | — | — | — | — | |||||||
| Super Micro Computer Inc. | 23.80% | 28.29% | 32.45% | 33.21% | 31.80% | 27.33% | 20.00% | 14.41% | 10.53% | 9.77% | 10.20% | 8.65% | 8.32% | 7.88% | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-12-29), 10-Q (reporting date: 2023-09-29), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-30), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-K (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-Q (reporting date: 2021-01-01), 10-Q (reporting date: 2020-10-02), 10-K (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03), 10-Q (reporting date: 2020-01-03), 10-Q (reporting date: 2019-10-04), 10-K (reporting date: 2019-06-28), 10-Q (reporting date: 2019-03-29), 10-Q (reporting date: 2018-12-28), 10-Q (reporting date: 2018-09-28).
1 Q2 2024 Calculation
ROE = 100
× (Net income (loss)Q2 2024
+ Net income (loss)Q1 2024
+ Net income (loss)Q4 2023
+ Net income (loss)Q3 2023)
÷ Shareholders’ equity
= 100 × (-287 + -685 + -715 + -572)
÷ 10,944 = -20.64%
2 Click competitor name to see calculations.
The analysis of the available quarterly financial data reveals several noteworthy trends regarding the company's profitability, equity, and return on equity (ROE) over the observed periods.
- Net Income (Loss)
- The net income exhibits significant volatility throughout the timeline. Initially, the company reported a positive net income of $511 million, followed by a series of losses from late 2018 to early 2020, with the lowest points reaching losses of approximately $581 million and $276 million. From mid-2020 onward, there was a recovery phase where net income turned positive again, peaking at $622 million in mid-2021. However, starting late 2021, net income experienced a decline with intermittent positive and negative values, culminating in substantial losses by the end of 2023, indicating heightened earnings instability and potential operational or market challenges.
- Shareholders’ Equity
- Shareholders' equity showed a general decreasing trend from late 2018 through early 2020, declining from approximately $11.4 billion to below $9.3 billion. From mid-2020 onward, equity levels recovered steadily, reaching a peak above $12 billion by the end of 2021. Subsequently, equity stabilized around this higher level through late 2022. However, a slight downward movement is observable heading into 2023, ending near $10.9 billion by the last quarter reported. Overall, despite some fluctuations and a mid-period dip, the equity base remained relatively robust.
- Return on Equity (ROE)
- ROE displays significant fluctuations parallel to net income trends. Early periods show positive ROE values, peaking near 7.7%, but this quickly shifted to negative returns from late 2018 through mid-2020, with the worst quarterly ROE reaching almost -16%. Starting mid-2020, the ROE progressively improved, achieving its highest point of over 16% in late 2021, indicating effective utilization of shareholders’ equity during this period. However, from late 2022 through 2023, ROE sharply declined into negative territory again, dropping as low as -22%, signaling reduced profitability relative to equity and possible operational inefficiencies or market headwinds.
In summary, the company's financial performance over these quarters is characterized by marked earnings volatility, with intermittent recoveries and periods of significant losses. Equity levels, after some initial declines, remained fairly stable but showed minor erosion towards the end of the timeline. The ROE mirrored these income trends, highlighting cyclical profitability challenges and efficiency issues. These patterns may suggest the company faced varying economic conditions, market pressures, or internal operational factors impacting its profitability and equity returns over the reported period.
Return on Assets (ROA)
Western Digital Corp., ROA calculation (quarterly data)
| Dec 29, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 30, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | Dec 31, 2021 | Oct 1, 2021 | Jul 2, 2021 | Apr 2, 2021 | Jan 1, 2021 | Oct 2, 2020 | Jul 3, 2020 | Apr 3, 2020 | Jan 3, 2020 | Oct 4, 2019 | Jun 28, 2019 | Mar 29, 2019 | Dec 28, 2018 | Sep 28, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income (loss) | (287) | (685) | (715) | (572) | (446) | 27) | 301) | 25) | 564) | 610) | 622) | 197) | 62) | (60) | 148) | 17) | (139) | (276) | (197) | (581) | (487) | 511) | |||||||
| Total assets | 24,385) | 24,001) | 24,429) | 25,151) | 25,047) | 25,686) | 26,259) | 25,699) | 26,025) | 26,391) | 26,132) | 25,409) | 25,552) | 25,402) | 25,662) | 25,509) | 25,860) | 26,280) | 26,370) | 26,913) | 27,939) | 28,705) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROA1 | -9.26% | -10.07% | -6.98% | -2.74% | -0.37% | 3.57% | 5.71% | 7.09% | 7.66% | 5.65% | 3.14% | 1.37% | 0.65% | -0.13% | -0.97% | -2.33% | -4.61% | -5.86% | -2.86% | 0.74% | 3.01% | 1.76% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||||||||
| Apple Inc. | 29.75% | 28.55% | 27.51% | 28.28% | 28.40% | 27.45% | 28.29% | 29.63% | 29.07% | 26.38% | 26.97% | 26.32% | 22.63% | 18.06% | 17.73% | 18.41% | 17.86% | 16.89% | — | — | — | — | |||||||
| Arista Networks Inc. | 21.18% | 21.69% | 20.98% | 20.96% | 20.88% | 20.11% | 19.96% | 18.90% | 17.77% | 15.27% | 14.66% | 14.43% | 13.99% | 13.82% | — | — | — | — | — | — | — | — | |||||||
| Cisco Systems Inc. | 13.29% | 13.75% | 12.38% | 11.76% | 11.79% | 12.36% | 12.57% | 12.94% | 12.54% | 11.87% | 10.86% | 10.88% | 10.60% | 11.01% | — | — | — | — | — | — | — | — | |||||||
| Dell Technologies Inc. | 2.22% | 2.32% | 2.73% | 2.15% | 6.11% | 6.50% | 6.00% | 5.00% | 3.08% | 3.28% | 2.63% | 2.04% | 1.73% | 3.71% | — | — | — | — | — | — | — | — | |||||||
| Super Micro Computer Inc. | 13.55% | 14.96% | 17.42% | 18.39% | 18.81% | 13.45% | 8.90% | 5.98% | 4.67% | 4.56% | 4.99% | 4.56% | 4.67% | 4.65% | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-12-29), 10-Q (reporting date: 2023-09-29), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-30), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-K (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-Q (reporting date: 2021-01-01), 10-Q (reporting date: 2020-10-02), 10-K (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03), 10-Q (reporting date: 2020-01-03), 10-Q (reporting date: 2019-10-04), 10-K (reporting date: 2019-06-28), 10-Q (reporting date: 2019-03-29), 10-Q (reporting date: 2018-12-28), 10-Q (reporting date: 2018-09-28).
1 Q2 2024 Calculation
ROA = 100
× (Net income (loss)Q2 2024
+ Net income (loss)Q1 2024
+ Net income (loss)Q4 2023
+ Net income (loss)Q3 2023)
÷ Total assets
= 100 × (-287 + -685 + -715 + -572)
÷ 24,385 = -9.26%
2 Click competitor name to see calculations.
- Net Income (Loss) Trends
- The net income exhibits significant volatility over the observed periods. Initial quarters show positive income, but this is followed by a series of losses starting in late 2018, with several quarters reflecting negative values. Mid-2020 marks a recovery phase, where net income turns positive and reaches a peak in mid-2021. However, from late 2021 onwards, net income declines sharply again, culminating in substantial losses by the end of 2023. The inconsistent pattern suggests exposure to fluctuating operational or market conditions.
- Total Assets
- Total assets show a general declining trend from 2018 through to 2023. Starting near 28.7 billion USD, assets decrease gradually over the years, reaching values closer to 24.3 billion USD by the end of 2023. Although there are slight periods of stabilization or minor increases within this timeframe, the overall asset base contracts steadily, possibly reflecting asset sales, depreciation, or strategic downsizing.
- Return on Assets (ROA)
- The ROA values correspond closely with net income trends, displaying considerable fluctuations. Initial positive ROA values in 2018 transition into increasingly negative returns through 2019 and early 2020. A return to positive ROA occurs from mid-2020, peaking between late 2021 and early 2022 with returns above 7%. Subsequently, ROA declines once more, turning negative by late 2022 and worsening significantly in 2023, indicating declining profitability relative to asset base and efficiency challenges.
- Overall Financial Insights
- The data reflects a cyclical pattern characterized by erratic profitability, shrinking asset base, and unstable returns on assets. Periods of recovery and growth are interrupted by substantial downturns, indicating possible external pressures or internal inefficiencies affecting financial performance. The pronounced negative swings in net income and ROA in recent quarters highlight heightened risks and suggest the need for strategic interventions to stabilize and improve financial health.