Return on Equity (ROE)
since 2019
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Shockwave Medical Inc. pages available for free this week:
- Statement of Comprehensive Income
- Common-Size Income Statement
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Net Profit Margin since 2019
- Analysis of Debt
- Aggregate Accruals
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Calculation
Shockwave Medical Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | = | 100 | × | ÷ | |||
| Dec 31, 2022 | = | 100 | × | ÷ | |||
| Dec 31, 2021 | = | 100 | × | ÷ | |||
| Dec 31, 2020 | = | 100 | × | ÷ | |||
| Dec 31, 2019 | = | 100 | × | ÷ |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 US$ in thousands
- Net Income (Loss)
- The net income displayed a significant improvement over the five-year period. Starting with a loss of $51.1 million in 2019, the negative earnings deepened to approximately $65.7 million in 2020. This was followed by a considerable reduction in the loss to about $9.1 million in 2021. The trend shifted dramatically in 2022, with the company reporting a substantial profit of approximately $216.0 million, which then decreased to $147.3 million in 2023, while remaining strongly positive.
- Stockholders’ Equity
- Stockholders’ equity consistently increased each year. Beginning at $192.7 million in 2019, the equity base expanded steadily, reaching $225.7 million in 2020 and $241.8 million in 2021. There was a marked acceleration in growth from 2021 onwards, with equity more than doubling in 2022 to $511.3 million and further increasing to $668.7 million in 2023. This reflects a strengthening capital structure and retained earnings accumulation.
- Return on Equity (ROE)
- The return on equity exhibited a negative performance in the initial three years, declining from -26.53% in 2019 to -29.11% in 2020, and then improving to -3.78% in 2021. A pronounced positive turnaround occurred in 2022 with ROE reaching 42.24%, driven by the significant net income turnaround. This positive momentum decreased to 22.03% in 2023 but still indicates solid profitability relative to the equity base.
- Summary of Trends and Insights
- Over the observed period, the company experienced a notable transition from sustained losses to substantial profitability. The escalation in net income beginning in 2021 reflects a potential operational and/or strategic shift that led to positive earnings in subsequent years. The growth in stockholders’ equity supports this improvement, evidencing enhanced financial stability and increased shareholder value. ROE trends correspond closely with the net income developments, demonstrating an improved capacity to generate returns on shareholders’ investments post-2021. Despite a decline in profitability margins in 2023 compared to 2022, the firm maintains a strong positive return, indicating continued efficient equity utilization.
Comparison to Competitors
Shockwave Medical Inc., ROE, long-term trends, comparison to competitors
| Shockwave Medical Inc. | Abbott Laboratories | CVS Health Corp. | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | |||||||
| Dec 31, 2022 | |||||||
| Dec 31, 2021 | |||||||
| Dec 31, 2020 | |||||||
| Dec 31, 2019 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
Comparison to Sector (Health Care Equipment & Services)
Shockwave Medical Inc., ROE, long-term trends, comparison to sector (health care equipment & services)
| Shockwave Medical Inc. | Health Care Equipment & Services | |
|---|---|---|
| Dec 31, 2023 | ||
| Dec 31, 2022 | ||
| Dec 31, 2021 | ||
| Dec 31, 2020 | ||
| Dec 31, 2019 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
Comparison to Industry (Health Care)
Shockwave Medical Inc., ROE, long-term trends, comparison to industry (health care)
| Shockwave Medical Inc. | Health Care | |
|---|---|---|
| Dec 31, 2023 | ||
| Dec 31, 2022 | ||
| Dec 31, 2021 | ||
| Dec 31, 2020 | ||
| Dec 31, 2019 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).