What is Western Digital's earnings per share (EPS)?

Western Digital (WDC) reported diluted earnings per share of $5.12 for fiscal year 2025. This represents a 296.2% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Western Digital Financials

WDC

Source SEC Filings (10-K/10-Q) Updated Jan 2, 2026 Currency USD FYE June

This page shows Western Digital (WDC) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Financial Health Signals

Financial Profile 72/100

Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability

Western Digital has an operating margin of 24.5%, meaning the company retains $25 of operating profit per $100 of revenue. This strong profitability earns a score of 77/100, reflecting efficient cost management and pricing power. This is up from -6.4% the prior year.

Growth

100

Western Digital's revenue surged 50.7% year-over-year to $9.5B, reflecting rapid business expansion. This strong growth earns a score of 100/100.

Leverage

Western Digital carries a low D/E ratio of 0.47, meaning only $0.47 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 92/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

Western Digital's current ratio of 1.08 means current assets barely cover short-term liabilities. This tight liquidity results in a low score of 17/100, which could limit financial flexibility.

Cash Flow

Western Digital has a free cash flow margin of 13.4%, earning a moderate score of 59/100. The company generates positive cash flow after capital investments, but with room for improvement.

Returns

Western Digital earns a strong 35.6% return on equity (ROE), meaning it generates $36 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 90/100. This is up from -7.4% the prior year.

Altman Z-Score Safe

8.50

Western Digital scores 8.50, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($100.9B) relative to total liabilities ($8.5B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Piotroski F-Score Neutral

6/9

Western Digital passes 6 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, both operating efficiency signals pass.

Earnings Quality Mixed

0.90x

For every $1 of reported earnings, Western Digital generates $0.90 in operating cash flow ($1.7B OCF vs $1.9B net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.

Interest Coverage Safe

6.5x

Western Digital earns $6.5 in operating income for every $1 of interest expense ($2.3B vs $357.0M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.

Key Financial Metrics

Export CSV

Earnings & Revenue

Revenue

$9.5B

YoY+50.7%

5Y CAGR-10.5%

10Y CAGR-4.7%

Western Digital generated $9.5B in revenue in fiscal year 2025. This represents an increase of 50.7% from the prior year.

EBITDA

$2.8B

YoY+1587.9%

5Y CAGR+8.0%

10Y CAGR+1.1%

Western Digital's EBITDA was $2.8B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 1587.9% from the prior year.

Net Income

$1.9B

YoY+336.7%

10Y CAGR+6.8%

Western Digital reported $1.9B in net income in fiscal year 2025. This represents an increase of 336.7% from the prior year.

EPS (Diluted)

$5.12

YoY+296.2%

10Y CAGR+2.6%

Western Digital earned $5.12 per diluted share (EPS) in fiscal year 2025. This represents an increase of 296.2% from the prior year.

Cash & Balance Sheet

Free Cash Flow

$1.3B

YoY+263.8%

5Y CAGR+13.8%

10Y CAGR-5.1%

Western Digital generated $1.3B in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 263.8% from the prior year.

Cash & Debt

$2.1B

YoY+36.3%

5Y CAGR-9.4%

10Y CAGR-6.9%

Western Digital held $2.1B in cash against $2.5B in long-term debt as of fiscal year 2025.

Dividends Per Share

$0.10

5Y CAGR-45.1%

Western Digital paid $0.10 per share in dividends in fiscal year 2025.

Shares Outstanding

347M

YoY+1.0%

5Y CAGR+3.2%

10Y CAGR+3.9%

Western Digital had 347M shares outstanding in fiscal year 2025. This represents an increase of 1.0% from the prior year.

Margins & Returns

Gross Margin

38.8%

YoY+10.7pp

5Y CAGR+16.1pp

10Y CAGR+10.4pp

Western Digital's gross margin was 38.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 10.7 percentage points from the prior year.

Operating Margin

24.5%

YoY+30.9pp

5Y CAGR+24.0pp

10Y CAGR+16.3pp

Western Digital's operating margin was 24.5% in fiscal year 2025, reflecting core business profitability. This is up 30.9 percentage points from the prior year.

Net Margin

19.8%

YoY+32.5pp

5Y CAGR+24.4pp

10Y CAGR+13.5pp

Western Digital's net profit margin was 19.8% in fiscal year 2025, showing the share of revenue converted to profit. This is up 32.5 percentage points from the prior year.

Return on Equity

35.6%

YoY+43.0pp

5Y CAGR+43.1pp

10Y CAGR+23.2pp

Western Digital's ROE was 35.6% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 43.0 percentage points from the prior year.

Capital Allocation

R&D Spending

$994.0M

YoY+4.6%

5Y CAGR-14.6%

10Y CAGR-4.5%

Western Digital invested $994.0M in research and development in fiscal year 2025. This represents an increase of 4.6% from the prior year.

Share Buybacks

$149.0M

5Y CAGR-23.3%

10Y CAGR-15.9%

Western Digital spent $149.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

Capital Expenditures

$412.0M

YoY-15.4%

5Y CAGR-14.0%

10Y CAGR-8.0%

Western Digital invested $412.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 15.4% from the prior year.

WDC Income Statement

Metric	FY25	FY24	FY22	FY21	FY20	FY19
Revenue	$9.5B+50.7%	$6.3B-66.4%	$18.8B+11.1%	$16.9B+1.1%	$16.7B+1.0%	$16.6B
Cost of Revenue	$5.8B+28.3%	$4.5B-64.8%	$12.9B+4.2%	$12.4B-4.3%	$13.0B+1.1%	$12.8B
Gross Profit	$3.7B+108.2%	$1.8B-69.8%	$5.9B+29.9%	$4.5B+19.6%	$3.8B+0.8%	$3.8B
R&D Expenses	$994.0M+4.6%	$950.0M-59.1%	$2.3B+3.6%	$2.2B-0.8%	$2.3B+3.6%	$2.2B
SG&A Expenses	$568.0M-21.8%	$726.0M-35.0%	$1.1B+1.1%	$1.1B-4.2%	$1.2B-12.5%	$1.3B
Operating Income	$2.3B+679.2%	-$403.0M-116.9%	$2.4B+96.0%	$1.2B+264.2%	$335.0M+285.1%	$87.0M
Interest Expense	$357.0M+14.4%	$312.0M+2.6%	$304.0M-6.7%	$326.0M-21.1%	$413.0M-11.9%	$469.0M
Income Tax	-$513.0M-2073.1%	$26.0M-95.8%	$625.0M+489.6%	$106.0M-48.0%	$204.0M-56.3%	$467.0M
Net Income	$1.9B+336.7%	-$798.0M-151.6%	$1.5B+88.3%	$821.0M+428.4%	-$250.0M+66.8%	-$754.0M
EPS (Diluted)	$5.12+296.2%	$-2.61-153.4%	$4.89+83.8%	$2.66+416.7%	$-0.84+67.4%	$-2.58

Metric	Q3'26	Q2'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Revenue	$3.0B+7.1%	$2.8B+8.2%	$2.6B+13.6%	$2.3B-4.8%	$2.4B+8.9%	$2.2B+10.4%	$2.0B+14.4%	$1.8B
Cost of Revenue	$1.6B+2.9%	$1.6B	N/A	$1.4B-8.0%	$1.5B+6.8%	$1.4B	N/A	$1.2B
Gross Profit	$1.4B+12.5%	$1.2B+15.0%	$1.1B+17.0%	$912.0M+0.6%	$907.0M+12.5%	$806.0M+15.6%	$697.0M+34.3%	$519.0M
R&D Expenses	$289.0M-1.7%	$294.0M	N/A	$245.0M+8.9%	$225.0M-14.1%	$262.0M	N/A	$243.0M
SG&A Expenses	$128.0M-7.2%	$138.0M	N/A	$108.0M-18.2%	$132.0M-35.3%	$204.0M	N/A	$176.0M
Operating Income	$908.0M+14.6%	$792.0M	N/A	$760.0M+35.7%	$560.0M+67.7%	$334.0M	N/A	$94.0M
Interest Expense	$54.0M-8.5%	$59.0M	N/A	$91.0M-2.2%	$93.0M-6.1%	$99.0M	N/A	$108.0M
Income Tax	$120.0M-22.6%	$155.0M	N/A	-$698.0M	$0-100.0%	$90.0M	N/A	-$4.0M
Net Income	$1.8B+55.8%	$1.2B+319.1%	$282.0M-45.8%	$520.0M-12.5%	$594.0M+20.5%	$493.0M+1164.1%	$39.0M-71.1%	$135.0M
EPS (Diluted)	$4.73+54.1%	$3.07+309.3%	$0.75-47.2%	$1.42-12.9%	$1.63+20.7%	$1.35+1587.5%	$0.08-77.1%	$0.35

WDC Balance Sheet

Metric	FY25	FY24	FY22	FY21	FY20	FY19
Total Assets	$14.0B-42.1%	$24.2B-5.8%	$25.7B-2.7%	$26.4B+3.9%	$25.4B-3.7%	$26.4B
Current Assets	$5.9B-27.3%	$8.1B-11.1%	$9.1B-8.0%	$9.9B+9.5%	$9.0B+6.2%	$8.5B
Cash & Equivalents	$2.1B+36.3%	$1.6B-24.3%	$2.0B-37.7%	$3.3B+9.8%	$3.0B-13.3%	$3.5B
Inventory	$1.3B-6.9%	$1.4B-64.1%	$3.9B+9.0%	$3.5B+5.6%	$3.4B+2.2%	$3.3B
Accounts Receivable	$1.5B+20.7%	$1.2B-49.2%	$2.4B-1.0%	$2.4B+16.6%	$2.1B+74.2%	$1.2B
Goodwill	$4.3B0.0%	$4.3B-57.0%	$10.0B-0.3%	$10.1B0.0%	$10.1B-0.1%	$10.1B
Total Liabilities	$8.5B-35.6%	$13.1B-3.2%	$13.6B-9.7%	$15.0B-5.0%	$15.8B-3.5%	$16.4B
Current Liabilities	$5.4B-11.0%	$6.1B+22.6%	$5.0B+5.5%	$4.7B+6.3%	$4.4B+16.0%	$3.8B
Long-Term Debt	$2.5B-56.3%	$5.7B-19.6%	$7.1B-14.5%	$8.3B-9.0%	$9.1B-11.3%	$10.2B
Total Equity	$5.3B-50.9%	$10.8B-11.5%	$12.2B+7.6%	$11.4B+18.6%	$9.6B-3.9%	$10.0B
Retained Earnings	$762.0M-88.8%	$6.8B-26.0%	$9.2B+12.4%	$8.1B+22.4%	$6.7B-10.6%	$7.4B

Metric	Q3'26	Q2'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Total Assets	$15.6B+8.7%	$14.4B+2.5%	$14.0B-14.5%	$16.4B-35.7%	$25.5B+2.8%	$24.8B+2.4%	$24.2B+1.6%	$23.8B
Current Assets	$7.5B+20.0%	$6.3B+7.2%	$5.9B-27.6%	$8.1B-13.7%	$9.4B+4.8%	$8.9B+10.9%	$8.1B+7.0%	$7.5B
Cash & Equivalents	$2.0B-3.6%	$2.0B-3.1%	$2.1B-39.2%	$3.5B+51.8%	$2.3B+34.4%	$1.7B+9.9%	$1.6B-18.1%	$1.9B
Inventory	$1.3B-3.2%	$1.4B+7.9%	$1.3B-1.5%	$1.3B-61.7%	$3.4B+1.1%	$3.4B+144.0%	$1.4B-56.9%	$3.2B
Accounts Receivable	$1.7B+24.4%	$1.4B-8.8%	$1.5B+1.2%	$1.5B-43.4%	$2.6B+5.7%	$2.5B+99.7%	$1.2B-31.6%	$1.8B
Goodwill	$4.3B0.0%	$4.3B0.0%	$4.3B0.0%	$4.3B-55.6%	$9.7B-0.8%	$9.8B+127.2%	$4.3B-57.0%	$10.0B
Total Liabilities	$8.3B+0.4%	$8.2B-2.6%	$8.5B-22.8%	$11.0B-16.4%	$13.1B+1.6%	$12.9B-1.8%	$13.1B+2.6%	$12.8B
Current Liabilities	$5.2B+0.1%	$5.2B-4.5%	$5.4B+4.6%	$5.2B+10.1%	$4.7B-22.7%	$6.1B+0.1%	$6.1B+50.2%	$4.1B
Long-Term Debt	$2.4B-1.1%	$2.5B-1.1%	$2.5B-49.4%	$4.9B-32.0%	$7.2B+27.7%	$5.7B-0.6%	$5.7B-22.3%	$7.3B
Total Equity	$7.1B+20.8%	$5.9B+10.9%	$5.3B+2.6%	$5.2B-57.3%	$12.1B+4.1%	$11.6B+7.6%	$10.8B+6.9%	$10.1B
Retained Earnings	$3.7B+94.2%	$1.9B+149.9%	$762.0M+46.3%	$521.0M-93.4%	$7.9B+8.2%	$7.3B+7.3%	$6.8B+0.6%	$6.7B

WDC Cash Flow Statement

Metric	FY25	FY24	FY22	FY21	FY20	FY19
Operating Cash Flow	$1.7B+675.2%	-$294.0M-115.6%	$1.9B-0.9%	$1.9B+130.3%	$824.0M-46.7%	$1.5B
Capital Expenditures	$412.0M-15.4%	$487.0M-56.6%	$1.1B-2.1%	$1.1B+77.1%	$647.0M-26.1%	$876.0M
Free Cash Flow	$1.3B+263.8%	-$781.0M-203.0%	$758.0M+0.8%	$752.0M+324.9%	$177.0M-73.6%	$671.0M
Investing Cash Flow	$150.0M+655.6%	-$27.0M+97.7%	-$1.2B-55.8%	-$765.0M-375.2%	$278.0M+121.9%	-$1.3B
Financing Cash Flow	-$1.6B-962.0%	$187.0M+110.9%	-$1.7B-110.3%	-$817.0M+45.8%	-$1.5B+17.6%	-$1.8B
Dividends Paid	$44.0M	$0	$0	$0-100.0%	$595.0M+1.9%	$584.0M
Share Buybacks	$149.0M	$0	N/A	$0	$0-100.0%	$563.0M

Metric	Q3'26	Q2'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Operating Cash Flow	$745.0M+10.9%	$672.0M-9.9%	$746.0M+46.9%	$508.0M+26.1%	$403.0M+1085.3%	$34.0M-90.7%	$366.0M+531.0%	$58.0M
Capital Expenditures	$92.0M+26.0%	$73.0M+2.8%	$71.0M-45.0%	$129.0M+11.2%	$116.0M+20.8%	$96.0M-17.2%	$116.0M+19.6%	$97.0M
Free Cash Flow	$653.0M+9.0%	$599.0M-11.3%	$675.0M+78.1%	$379.0M+32.1%	$287.0M+562.9%	-$62.0M-124.8%	$250.0M+741.0%	-$39.0M
Investing Cash Flow	-$116.0M-103.5%	-$57.0M+18.6%	-$70.0M-149.3%	$142.0M+15.4%	$123.0M+373.3%	-$45.0M+22.4%	-$58.0M-928.6%	$7.0M
Financing Cash Flow	-$703.0M-3.7%	-$678.0M+66.8%	-$2.0B-483.1%	$533.0M+53400.0%	-$1.0M+99.0%	-$102.0M+68.0%	-$319.0M+50.5%	-$645.0M
Dividends Paid	$43.0M+26.5%	$34.0M	N/A	N/A	$0	$0	N/A	N/A
Share Buybacks	$615.0M+11.2%	$553.0M	N/A	N/A	$0	$0	N/A	N/A

WDC Financial Ratios

Metric	FY25	FY24	FY22	FY21	FY20	FY19
Gross Margin	38.8%+10.7pp	28.1%-3.2pp	31.3%+4.5pp	26.7%+4.1pp	22.6%-0.1pp	22.6%
Operating Margin	24.5%+30.9pp	-6.4%-19.1pp	12.7%+5.5pp	7.2%+5.2pp	2.0%+1.5pp	0.5%
Net Margin	19.8%+32.5pp	-12.6%-20.9pp	8.2%+3.4pp	4.9%+6.3pp	-1.5%+3.1pp	-4.5%
Return on Equity	35.6%+43.0pp	-7.4%-20.0pp	12.7%+5.4pp	7.2%+9.8pp	-2.6%+5.0pp	-7.6%
Return on Assets	13.5%+16.8pp	-3.3%-9.3pp	6.0%+2.9pp	3.1%+4.1pp	-1.0%+1.9pp	-2.9%
Current Ratio	1.08-0.2	1.32-0.5	1.83-0.3	2.09+0.1	2.03-0.2	2.22
Debt-to-Equity	0.47-0.1	0.53-0.1	0.58-0.1	0.73-0.2	0.95-0.1	1.03
FCF Margin	13.4%+25.8pp	-12.4%-16.4pp	4.0%-0.4pp	4.4%+3.4pp	1.1%-3.0pp	4.0%

Metric	Q3'26	Q2'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Gross Margin	45.7%+2.2pp	43.5%+2.6pp	41.0%+1.2pp	39.8%+2.1pp	37.6%+1.2pp	36.4%+1.7pp	34.8%+5.2pp	29.6%
Operating Margin	30.1%+2.0pp	28.1%	N/A	33.1%+9.9pp	23.3%+8.2pp	15.1%	N/A	5.4%
Net Margin	61.1%+19.1pp	41.9%+31.1pp	10.8%-11.8pp	22.7%-2.0pp	24.7%+2.4pp	22.3%+20.3pp	1.9%-5.8pp	7.7%
Return on Equity	25.9%+5.8pp	20.1%+14.8pp	5.3%-4.7pp	10.0%+5.1pp	4.9%+0.7pp	4.2%+3.9pp	0.4%-1.0pp	1.3%
Return on Assets	11.8%+3.6pp	8.2%+6.2pp	2.0%-1.2pp	3.2%+0.9pp	2.3%+0.3pp	2.0%+1.8pp	0.2%-0.4pp	0.6%
Current Ratio	1.46+0.2	1.21+0.1	1.08-0.5	1.56-0.4	1.99+0.5	1.47+0.1	1.32-0.5	1.86
Debt-to-Equity	0.34-0.1	0.42-0.1	0.47-0.5	0.95+0.4	0.60+0.1	0.49-0.0	0.53-0.2	0.72
FCF Margin	21.6%+0.4pp	21.3%-4.6pp	25.9%+9.4pp	16.5%+4.6pp	11.9%+14.7pp	-2.8%-15.3pp	12.5%+14.7pp	-2.2%

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Frequently Asked Questions

What is Western Digital's annual revenue?

Western Digital (WDC) reported $9.5B in total revenue for fiscal year 2025. This represents a 50.7% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Western Digital's revenue growing?

Western Digital (WDC) revenue grew by 50.7% year-over-year, from $6.3B to $9.5B in fiscal year 2025.

Is Western Digital profitable?

Yes, Western Digital (WDC) reported a net income of $1.9B in fiscal year 2025, with a net profit margin of 19.8%.

What is Western Digital's EBITDA?

Western Digital (WDC) had EBITDA of $2.8B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

How much debt does Western Digital have?

As of fiscal year 2025, Western Digital (WDC) had $2.1B in cash and equivalents against $2.5B in long-term debt.

What is Western Digital's gross margin?

Western Digital (WDC) had a gross margin of 38.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

What is Western Digital's operating margin?

Western Digital (WDC) had an operating margin of 24.5% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

What is Western Digital's net profit margin?

Western Digital (WDC) had a net profit margin of 19.8% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Does Western Digital pay dividends?

Yes, Western Digital (WDC) paid $0.10 per share in dividends during fiscal year 2025.

What is Western Digital's return on equity (ROE)?

Western Digital (WDC) has a return on equity of 35.6% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Western Digital's free cash flow?

Western Digital (WDC) generated $1.3B in free cash flow during fiscal year 2025. This represents a 263.8% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is Western Digital's operating cash flow?

Western Digital (WDC) generated $1.7B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Western Digital's total assets?

Western Digital (WDC) had $14.0B in total assets as of fiscal year 2025, including both current and long-term assets.

What are Western Digital's capital expenditures?

Western Digital (WDC) invested $412.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

How much does Western Digital spend on research and development?

Western Digital (WDC) invested $994.0M in research and development during fiscal year 2025.

Does Western Digital buy back shares?

Yes, Western Digital (WDC) spent $149.0M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

How many shares does Western Digital have outstanding?

Western Digital (WDC) had 347M shares outstanding as of fiscal year 2025.

What is Western Digital's current ratio?

Western Digital (WDC) had a current ratio of 1.08 as of fiscal year 2025, which is considered adequate.

What is Western Digital's debt-to-equity ratio?

Western Digital (WDC) had a debt-to-equity ratio of 0.47 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Western Digital's return on assets (ROA)?

Western Digital (WDC) had a return on assets of 13.5% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Western Digital's Altman Z-Score?

Western Digital (WDC) has an Altman Z-Score of 8.50, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

What is Western Digital's Piotroski F-Score?

Western Digital (WDC) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Western Digital's earnings high quality?

Western Digital (WDC) has an earnings quality ratio of 0.90x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Can Western Digital cover its interest payments?

Western Digital (WDC) has an interest coverage ratio of 6.5x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

How financially healthy is Western Digital?

Western Digital (WDC) scores 72 out of 100 on our Financial Profile, indicating strong overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.