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WDC (Western Digital) Degree of Operating Leverage : -2.61 (As of Mar. 2025)


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What is Western Digital Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Western Digital's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -2.61. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Western Digital's Degree of Operating Leverage or its related term are showing as below:

WDC's Degree of Operating Leverage is ranked better than
77.09% of 2422 companies
in the Hardware industry
Industry Median: 1.05 vs WDC: -2.61

Western Digital Degree of Operating Leverage Historical Data

The historical data trend for Western Digital's Degree of Operating Leverage 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 Degree of Operating Leverage Chart

Western Digital Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 100.85 217.22 8.82 4.36 -1.51

Western Digital Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage 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 146.90 -1.51 -2.42 -2.83 -2.61

Competitive Comparison of Western Digital's Degree of Operating Leverage

For the Computer Hardware subindustry, Western Digital's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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 Degree of Operating Leverage Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Western Digital's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Western Digital's Degree of Operating Leverage falls into.


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Western Digital Degree of Operating Leverage Calculation

Western Digital's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 2528 (Mar. 2025) / -1094 (Mar. 2024) - 1 )/( 14438 (Mar. 2025) / 11911 (Mar. 2024) - 1 )
=-3.3108/0.2122
=-15.61***

* 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.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Western Digital  (NAS:WDC) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Western Digital Degree of Operating Leverage Related Terms

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


Western Digital Business Description

Industry
Address
5601 Great Oaks Parkway, San Jose, CA, USA, 95119
Western Digital is a leading, vertically integrated supplier of hard disk drives. The HDD market is a practical duopoly with, Western Digital and Seagate being the two largest players. Western Digital designs and manufacturers its HDDs, with much of the manufacturing and workforce located in Asia. The primary consumers of HDDs are data centers.
Executives
Gene M. Zamiska officer: Principal Accounting Officer C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Robert Soderbery officer: EVP & GM, Flash Business C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
David Goeckeler director, officer: Chief Executive Officer C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Kimberly Alexy director 500 MCCARTHY BLVD., MILPITAS CA 95035
Reed B Rayman director 6775 LENOX CENTER COURT, SUITE 400, MEMPHIS TN 38115
Wissam G Jabre officer: EVP & CFO C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Paula A Price director ONE CVS DRIVE, WOONSOCKET RI 02895
Miyuki Suzuki director C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Thomas Caulfield director C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Lori S Sundberg officer: EVP & Chief Human Res Officer 400 NORTH FIFTH STREET, PHOENIX AZ 85004
Michael Charles Ray officer: Sr. VP, Gen Cnsl & Secretary C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Sean Hunkler officer: EVP, Global Operations C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Michael D Cordano officer: President, HGST Subsidiary C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Stephen D Milligan officer: Sr. V.P. & CFO C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119
Matthew E Massengill director, officer: Chairman and CEO C/O WESTERN DIGITAL CORPORATION, 5601 GREAT OAKS PARKWAY, SAN JOSE CA 95119