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Western Digital (WBO:WDC) Debt-to-EBITDA : -262.28 (As of Dec. 2023)


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What is Western Digital Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Western Digital's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €956 Mil. Western Digital's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €6,741 Mil. Western Digital's annualized EBITDA for the quarter that ended in Dec. 2023 was €-29 Mil. Western Digital's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was -262.28.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Western Digital's Debt-to-EBITDA or its related term are showing as below:

WBO:WDC' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -16.83   Med: 2.92   Max: 10.8
Current: -7.38

During the past 13 years, the highest Debt-to-EBITDA Ratio of Western Digital was 10.80. The lowest was -16.83. And the median was 2.92.

WBO:WDC's Debt-to-EBITDA is ranked worse than
100% of 1733 companies
in the Hardware industry
Industry Median: 1.75 vs WBO:WDC: -7.38

Western Digital Debt-to-EBITDA Historical Data

The historical data trend for Western Digital's Debt-to-EBITDA 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.

* Premium members only.

Western Digital Debt-to-EBITDA Chart

Western Digital Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.28 4.95 3.54 2.09 -16.83

Western Digital Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -18.81 -7.49 -3.88 -4.39 -262.28

Competitive Comparison of Western Digital's Debt-to-EBITDA

For the Computer Hardware subindustry, Western Digital's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Western Digital's Debt-to-EBITDA Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Western Digital's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Western Digital's Debt-to-EBITDA falls into.



Western Digital Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Western Digital's Debt-to-EBITDA for the fiscal year that ended in Jun. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1119.599 + 5406.011) / -387.66
=-16.83

Western Digital's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(955.514 + 6740.867) / -29.344
=-262.28

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Dec. 2023) EBITDA data.


Western Digital  (WBO:WDC) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Western Digital Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Western Digital's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.


Western Digital (WBO:WDC) Business Description

Traded in Other Exchanges
Address
5601 Great Oaks Parkway, San Jose, CA, USA, 95119
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.