Dollar Amounts
USD (Millions)
Balance sheet data in USD (millions)
Doing some research...
Over the five-year span Western Digital’s balance sheet shows two distinct phases. From 2021–2022 the company slightly grew total assets (from $26,132m to $26,259m, +0.5%) while materially lowering liabilities (from $15,411m to $14,038m, −8.9%), which boosted equity by about 13.9% (to $12,221m). Through 2023–2024 assets and equity drifted modestly lower (assets to $24,188m, equity roughly stable at ~$10.8bn) as liabilities moderated but then ticked up in 2024. Equity as a share of assets peaked in 2022 (~46.5%) and stayed in the mid‑40% range through 2024, consistent with relatively conservative capitalization and a period of partial deleveraging. 2025 shows a large, abrupt contraction across the balance sheet: assets fell ~42% year-over-year to $14,002m (−46% versus 2021), liabilities declined ~36% to $8,462m, and equity plunged ~51% to $5,311m. The equity ratio drops to ~38% and liabilities/asset ratio increases back above 60%, reversing the prior improvement in leverage. Such pronounced simultaneous reductions typically reflect one or more significant events (large asset disposals or divestitures, major impairment/write-downs, or a combination of substantial net losses and balance-sheet reclassification) rather than normal cyclical change. In the context of the storage/semiconductor supply cycle, these moves would be consistent with inventory write‑downs, restructuring or strategic asset sales; the outcome materially reduces book capital and would warrant close scrutiny of cash generation, contingent liabilities, and any one‑time items disclosed in the notes.
This analysis is for informational purposes only and does not constitute financial advice or recommendations for any investment decisions. Please consult with a qualified financial professional for personalized guidance.