Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Western Digital Corp., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Western Digital Corp. gross profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Western Digital Corp. operating profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Western Digital Corp. net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Western Digital Corp. ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Western Digital Corp. ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Gross Profit Margin
Western Digital Corp., gross profit margin calculation, comparison to benchmarks
| Jun 30, 2023 | Jul 1, 2022 | Jul 2, 2021 | Jul 3, 2020 | Jun 28, 2019 | Jun 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross profit | 1,887) | 5,874) | 4,521) | 3,781) | 3,752) | 7,705) | |
| Revenue, net | 12,318) | 18,793) | 16,922) | 16,736) | 16,569) | 20,647) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 15.32% | 31.26% | 26.72% | 22.59% | 22.64% | 37.32% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Apple Inc. | 44.13% | 43.31% | 41.78% | 38.23% | 37.82% | — | |
| Arista Networks Inc. | 61.95% | 61.07% | 63.80% | 63.94% | 64.06% | — | |
| Cisco Systems Inc. | 62.73% | 62.55% | 64.02% | 64.26% | 62.94% | — | |
| Super Micro Computer Inc. | 18.01% | 15.40% | 15.03% | 15.76% | 14.16% | 12.80% | |
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).
1 2023 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue, net
= 100 × 1,887 ÷ 12,318 = 15.32%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Western Digital Corp. gross profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Operating Profit Margin
Western Digital Corp., operating profit margin calculation, comparison to benchmarks
| Jun 30, 2023 | Jul 1, 2022 | Jul 2, 2021 | Jul 3, 2020 | Jun 28, 2019 | Jun 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income (loss) | (1,285) | 2,391) | 1,220) | 335) | 87) | 3,617) | |
| Revenue, net | 12,318) | 18,793) | 16,922) | 16,736) | 16,569) | 20,647) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | -10.43% | 12.72% | 7.21% | 2.00% | 0.53% | 17.52% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Apple Inc. | 29.82% | 30.29% | 29.78% | 24.15% | 24.57% | — | |
| Arista Networks Inc. | 38.52% | 34.86% | 31.37% | 30.19% | 33.42% | — | |
| Cisco Systems Inc. | 26.37% | 27.09% | 25.76% | 27.63% | 27.39% | — | |
| Super Micro Computer Inc. | 10.68% | 6.45% | 3.48% | 2.57% | 2.78% | 2.82% | |
| Operating Profit Margin, Sector | |||||||
| Technology Hardware & Equipment | 29.20% | 29.70% | 29.10% | 24.49% | 24.86% | — | |
| Operating Profit Margin, Industry | |||||||
| Information Technology | 26.18% | 28.26% | 28.63% | 24.76% | 25.32% | — | |
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).
1 2023 Calculation
Operating profit margin = 100 × Operating income (loss) ÷ Revenue, net
= 100 × -1,285 ÷ 12,318 = -10.43%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Western Digital Corp. operating profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Net Profit Margin
Western Digital Corp., net profit margin calculation, comparison to benchmarks
| Jun 30, 2023 | Jul 1, 2022 | Jul 2, 2021 | Jul 3, 2020 | Jun 28, 2019 | Jun 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income (loss) | (1,706) | 1,500) | 821) | (250) | (754) | 675) | |
| Revenue, net | 12,318) | 18,793) | 16,922) | 16,736) | 16,569) | 20,647) | |
| Profitability Ratio | |||||||
| Net profit margin1 | -13.85% | 7.98% | 4.85% | -1.49% | -4.55% | 3.27% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Apple Inc. | 25.31% | 25.31% | 25.88% | 20.91% | 21.24% | — | |
| Arista Networks Inc. | 35.62% | 30.87% | 28.52% | 27.38% | 35.67% | — | |
| Cisco Systems Inc. | 22.13% | 22.91% | 21.26% | 22.75% | 22.39% | — | |
| Super Micro Computer Inc. | 8.98% | 5.49% | 3.14% | 2.52% | 2.05% | 1.37% | |
| Net Profit Margin, Sector | |||||||
| Technology Hardware & Equipment | 24.78% | 24.87% | 25.16% | 21.05% | 21.32% | — | |
| Net Profit Margin, Industry | |||||||
| Information Technology | 22.02% | 23.86% | 25.49% | 21.22% | 22.17% | — | |
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).
1 2023 Calculation
Net profit margin = 100 × Net income (loss) ÷ Revenue, net
= 100 × -1,706 ÷ 12,318 = -13.85%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Western Digital Corp. net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Return on Equity (ROE)
Western Digital Corp., ROE calculation, comparison to benchmarks
| Jun 30, 2023 | Jul 1, 2022 | Jul 2, 2021 | Jul 3, 2020 | Jun 28, 2019 | Jun 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income (loss) | (1,706) | 1,500) | 821) | (250) | (754) | 675) | |
| Shareholders’ equity | 11,723) | 12,221) | 10,721) | 9,551) | 9,967) | 11,531) | |
| Profitability Ratio | |||||||
| ROE1 | -14.55% | 12.27% | 7.66% | -2.62% | -7.56% | 5.85% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Apple Inc. | 156.08% | 196.96% | 150.07% | 87.87% | 61.06% | — | |
| Arista Networks Inc. | 28.91% | 27.68% | 21.13% | 19.11% | 29.71% | — | |
| Cisco Systems Inc. | 28.44% | 29.70% | 25.66% | 29.57% | 34.62% | — | |
| Super Micro Computer Inc. | 32.45% | 20.00% | 10.20% | 7.91% | 7.64% | 5.47% | |
| ROE, Sector | |||||||
| Technology Hardware & Equipment | 97.10% | 117.05% | 97.06% | 64.42% | 53.02% | — | |
| ROE, Industry | |||||||
| Information Technology | 31.65% | 38.16% | 42.09% | 34.78% | 36.50% | — | |
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).
1 2023 Calculation
ROE = 100 × Net income (loss) ÷ Shareholders’ equity
= 100 × -1,706 ÷ 11,723 = -14.55%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Western Digital Corp. ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Return on Assets (ROA)
Western Digital Corp., ROA calculation, comparison to benchmarks
| Jun 30, 2023 | Jul 1, 2022 | Jul 2, 2021 | Jul 3, 2020 | Jun 28, 2019 | Jun 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income (loss) | (1,706) | 1,500) | 821) | (250) | (754) | 675) | |
| Total assets | 24,429) | 26,259) | 26,132) | 25,662) | 26,370) | 29,235) | |
| Profitability Ratio | |||||||
| ROA1 | -6.98% | 5.71% | 3.14% | -0.97% | -2.86% | 2.31% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Apple Inc. | 27.51% | 28.29% | 26.97% | 17.73% | 16.32% | — | |
| Arista Networks Inc. | 20.98% | 19.96% | 14.66% | 13.39% | 20.54% | — | |
| Cisco Systems Inc. | 12.38% | 12.57% | 10.86% | 11.82% | 11.88% | — | |
| Super Micro Computer Inc. | 17.42% | 8.90% | 4.99% | 4.39% | 4.27% | 2.61% | |
| ROA, Sector | |||||||
| Technology Hardware & Equipment | 24.00% | 24.80% | 23.27% | 16.30% | 15.34% | — | |
| ROA, Industry | |||||||
| Information Technology | 13.00% | 14.95% | 15.56% | 12.03% | 12.78% | — | |
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).
1 2023 Calculation
ROA = 100 × Net income (loss) ÷ Total assets
= 100 × -1,706 ÷ 24,429 = -6.98%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Western Digital Corp. ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |