Stock Analysis on Net
Stock Analysis on Net

Shockwave Medical Inc. (NASDAQ:SWAV)

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Shockwave Medical Inc., balance sheet: goodwill and intangible assets

US$ in thousands

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Goodwill 39,568 — — — —
Customer relationships 2,900 — — — —
Developed technology 61,200 — — — —
In-process research and development 31,400 — — — —
Intangible assets, gross carrying amount 95,500 — — — —
Accumulated amortization (2,643) — — — —
Intangible assets, net 92,857 — — — —
Goodwill and intangible assets 132,425 — — — —

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).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
Intangible assets, net Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.
Goodwill and intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.

Adjustments to Financial Statements: Removal of Goodwill

Shockwave Medical Inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 1,566,563 646,089 345,682 272,042 231,938
Less: Goodwill 39,568 — — — —
Total assets (adjusted) 1,526,995 646,089 345,682 272,042 231,938
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 668,677 511,316 241,830 225,654 192,653
Less: Goodwill 39,568 — — — —
Stockholders’ equity (adjusted) 629,109 511,316 241,830 225,654 192,653

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).

Shockwave Medical Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Shockwave Medical Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total Asset Turnover
Reported total asset turnover 0.47 0.76 0.69 0.25 0.19
Adjusted total asset turnover 0.48 0.76 0.69 0.25 0.19
Financial Leverage
Reported financial leverage 2.34 1.26 1.43 1.21 1.20
Adjusted financial leverage 2.43 1.26 1.43 1.21 1.20
Return on Equity (ROE)
Reported ROE 22.03% 42.24% -3.78% -29.11% -26.53%
Adjusted ROE 23.41% 42.24% -3.78% -29.11% -26.53%
Return on Assets (ROA)
Reported ROA 9.40% 33.43% -2.64% -24.15% -22.04%
Adjusted ROA 9.64% 33.43% -2.64% -24.15% -22.04%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Shockwave Medical Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Shockwave Medical Inc. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Shockwave Medical Inc. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Shockwave Medical Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Shockwave Medical Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Revenue 730,230 489,733 237,146 67,789 42,927
Total assets 1,566,563 646,089 345,682 272,042 231,938
Activity Ratio
Total asset turnover1 0.47 0.76 0.69 0.25 0.19
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Revenue 730,230 489,733 237,146 67,789 42,927
Adjusted total assets 1,526,995 646,089 345,682 272,042 231,938
Activity Ratio
Adjusted total asset turnover2 0.48 0.76 0.69 0.25 0.19

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).

2023 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 730,230 ÷ 1,566,563 = 0.47

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 730,230 ÷ 1,526,995 = 0.48

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Shockwave Medical Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total assets 1,566,563 646,089 345,682 272,042 231,938
Stockholders’ equity 668,677 511,316 241,830 225,654 192,653
Solvency Ratio
Financial leverage1 2.34 1.26 1.43 1.21 1.20
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets 1,526,995 646,089 345,682 272,042 231,938
Adjusted stockholders’ equity 629,109 511,316 241,830 225,654 192,653
Solvency Ratio
Adjusted financial leverage2 2.43 1.26 1.43 1.21 1.20

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).

2023 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 1,566,563 ÷ 668,677 = 2.34

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 1,526,995 ÷ 629,109 = 2.43

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Shockwave Medical Inc. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) 147,278 215,996 (9,136) (65,699) (51,109)
Stockholders’ equity 668,677 511,316 241,830 225,654 192,653
Profitability Ratio
ROE1 22.03% 42.24% -3.78% -29.11% -26.53%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income (loss) 147,278 215,996 (9,136) (65,699) (51,109)
Adjusted stockholders’ equity 629,109 511,316 241,830 225,654 192,653
Profitability Ratio
Adjusted ROE2 23.41% 42.24% -3.78% -29.11% -26.53%

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).

2023 Calculations

1 ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 147,278 ÷ 668,677 = 22.03%

2 Adjusted ROE = 100 × Net income (loss) ÷ Adjusted stockholders’ equity
= 100 × 147,278 ÷ 629,109 = 23.41%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Shockwave Medical Inc. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) 147,278 215,996 (9,136) (65,699) (51,109)
Total assets 1,566,563 646,089 345,682 272,042 231,938
Profitability Ratio
ROA1 9.40% 33.43% -2.64% -24.15% -22.04%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income (loss) 147,278 215,996 (9,136) (65,699) (51,109)
Adjusted total assets 1,526,995 646,089 345,682 272,042 231,938
Profitability Ratio
Adjusted ROA2 9.64% 33.43% -2.64% -24.15% -22.04%

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).

2023 Calculations

1 ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 147,278 ÷ 1,566,563 = 9.40%

2 Adjusted ROA = 100 × Net income (loss) ÷ Adjusted total assets
= 100 × 147,278 ÷ 1,526,995 = 9.64%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Shockwave Medical Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.