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GuruFocus has detected 7 Warning Signs with Western Digital Corp $WDC.
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Western Digital Corp (NAS:WDC)
Interest Expense
$-681 Mil (TTM As of Dec. 2016)

Interest Expense is the amount reported by a company or individual as an expense for borrowed money. Western Digital Corp's interest expense for the three months ended in Dec. 2016 was $-205 Mil. Its interest expense for the trailing twelve months (TTM) ended in Dec. 2016 was $-681 Mil.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company’s Operating Income (EBIT) by its Interest Expense. Western Digital Corp's Operating Income for the three months ended in Dec. 2016 was $545 Mil. Western Digital Corp's Interest Expense for the three months ended in Dec. 2016 was $-205 Mil. Western Digital Corp's interest coverage for the quarter that ended in Dec. 2016 was 2.66. The higher the ratio, the stronger the company’s financial strength is. Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Definition

Interest Expense is the amount reported by a company or individual as an expense for borrowed money.

Western Digital Corp Interest Expense for the trailing twelve months (TTM) ended in Dec. 2016 was -14 (Mar. 2016 ) + -226 (Jun. 2016 ) + -236 (Sep. 2016 ) + -205 (Dec. 2016 ) = $-681 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company’s Operating Income (EBIT) by its Interest Expense. The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Western Digital Corp's interest expense for the three months ended in Dec. 2016 was $-205 Mil. Its operating income for the three months ended in Dec. 2016 was $545 Mil. And its Long-Term Debt for the three months ended in Dec. 2016 was $12,944 Mil.

Western Digital Corp's Interest Coverage for the quarter that ended in Dec. 2016 is calculated as

Interest Coverage=-1*Operating Income (Q: Dec. 2016 )/Interest Expense (Q: Dec. 2016 )
=-1*545/-205
=2.66

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

The higher the ratio, the stronger the company’s financial strength is.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Western Digital Corp Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
Interest Expense -4-52-27-9-10-26-55-56-49-266

Western Digital Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
Interest Expense -13-12-12-12-13-13-14-226-236-205
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