WDCNEUTRAL

Return on Equity (ROE)

85.9%

Updated 270h ago

Sector Performance

95th percentile

WDC

85.9%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for every dollar of shareholders' equity, and WDC's current ROE of 85.9% means it earned $0.859 per dollar of equity over the past year.

This is well above the sector median of 13.9%, placing WDC in the 95th percentile among its sector peers. Trend data for the metric is not available: both the year-over-year change and quarter-over-quarter change are listed as N/A, and there are no historical quarterly values to assess direction. The combination of an exceptionally high ROE with no trend information creates an opportunity in the form of strong current profitability, but the lack of trend data introduces uncertainty about whether that performance is repeatable. This high ROE alone does not contradict the overall NEUTRAL verdict, as the absence of trend context prevents taking a more decisive bullish or bearish stance.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about WDC?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are WDC's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.