Analysis of Debt
Total Debt (Carrying Amount)
Shockwave Medical Inc., balance sheet: debt
US$ in thousands
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).
The company's debt profile exhibits a period of moderate growth followed by a substantial escalation in total liabilities during the final year of the analyzed period. Between December 31, 2019, and December 31, 2022, total debt increased steadily from $13.8 million to $24.2 million. However, a sharp inflection point occurred in 2023, where the total carrying amount of debt surged to $731.9 million.
- Debt Composition Shift
- From 2019 through 2022, the debt structure consisted of a combination of current and noncurrent long-term debt. By December 31, 2023, the debt composition transitioned entirely to noncurrent convertible debt, which accounts for the entirety of the company's long-term obligations.
- Current Liability Trends
- Current portions of debt were present from 2019 to 2021, fluctuating between $3.3 million and $6.7 million. By the end of 2022 and continuing through 2023, the current portion of debt was eliminated, indicating a shift toward longer-term financing structures.
- Magnitude of Expansion
- The total debt experienced an exponential increase in 2023, growing by approximately 2,920% compared to the 2022 balance. This indicates a significant capital raising event through the issuance of convertible instruments rather than organic growth in traditional long-term loans.
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Total Debt (Fair Value)
| Dec 31, 2023 | |
|---|---|
| Selected Financial Data (US$ in thousands) | |
| Convertible debt | 730,500) |
| Long-term debt, current and noncurrent | —) |
| Total convertible and long-term debt, current and noncurrent (fair value) | 730,500) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.00 |
Based on: 10-K (reporting date: 2023-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 1.50%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 1.50% | 731,863) | 10,978) | |
| Total | 731,863) | 10,978) | |
| 1.50% | |||
Based on: 10-K (reporting date: 2023-12-31).
1 US$ in thousands
2 Weighted-average interest rate = 100 × 10,978 ÷ 731,863 = 1.50%