Western Digital (WBO:WDC) ROCE % : -3.15% (As of Dec. 2023)

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What is Western Digital ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Western Digital's annualized ROCE % for the quarter that ended in Dec. 2023 was -3.15%.

Western Digital ROCE % Historical Data

The historical data trend for Western Digital's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Western Digital ROCE % Chart

Western Digital Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROCE %

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0.78

1.68

5.70

12.23

-6.16

Western Digital Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															-5.75	-8.81	-13.11	-12.65	-3.15

Western Digital ROCE % Calculation

Western Digital's annualized ROCE % for the fiscal year that ended in Jun. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jun. 2023 )		(A: Jun. 2022 )		(A: Jun. 2023 )
	=	-1151.904	/	( ( (24841.014 - 4954.202)	+	(22547.967 - 5015.582) )	/ 2 )
	=	-1151.904	/	( (19886.812	+	17532.385)	/ 2 )
	=	-1151.904	/	18709.5985
	=	-6.16 %

Western Digital's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	-553.868	/	( ( (22488.937 - 5427.104)	+	(22361.045 - 4303.481) )	/ 2 )
	=	-553.868	/	( ( 17061.833	+	18057.564 )	/ 2 )
	=	-553.868	/	17559.6985
	=	-3.15 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Western Digital (WBO:WDC) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Western Digital ROCE % Related Terms

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Western Digital (WBO:WDC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Western Digital Corp (WBO:WDC) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

WDC:USA WDC:Mexico 1WDC:Italy WDC:Germany

Address

5601 Great Oaks Parkway, San Jose, CA, USA, 95119

Website

https://www.wdc.com

Western Digital is a leading vertically integrated supplier of data storage solutions, spanning both hard disk drives and solid-state drives. In the HDD market it forms a practical duopoly with Seagate, and it is the largest global producer of NAND flash chips for SSDs in a joint venture with competitor Kioxia.