Shockwave Medical Inc. (NASDAQ:SWAV)

Goodwill

Goodwill is reported only for the year ending December 31, 2023, with a value of 39,568 thousand US dollars. There is no data for prior years, indicating a possible acquisition or revaluation event in 2023.

Customer Relationships

Customer relationships intangible asset appears solely in 2023, valued at 2,900 thousand US dollars. Its absence in earlier years suggests this asset was recognized recently, potentially as part of a business combination.

Developed Technology

Developed technology is recorded only in 2023, with an amount of 61,200 thousand US dollars. This sizeable figure likely reflects capitalization of technology assets following a significant transaction or reassessment.

In-Process Research and Development

The in-process research and development intangible asset is also reported exclusively in 2023, valued at 31,400 thousand US dollars, consistent with the pattern of newly recognized intangible assets.

Intangible Assets, Gross Carrying Amount

For 2023, the gross carrying amount of intangible assets totals 95,500 thousand US dollars, representing the aggregate value of intangible asset components recognized in that year.

Accumulated Amortization

Accumulated amortization appears only in 2023 as a negative amount of 2,643 thousand US dollars, indicating the commencement of amortization on intangible assets within the reporting period.

Intangible Assets, Net

The net intangible assets amount to 92,857 thousand US dollars at the end of 2023, their first reporting year, which is consistent with gross intangible assets less accumulated amortization.

Goodwill and Intangible Assets

The combined total of goodwill and intangible assets reaches 132,425 thousand US dollars in 2023. This figure signifies a considerable intangible asset base that was not present in the prior years’ financial data.

Total Assets

The reported total assets show a steady increase from 231,938 thousand US dollars at the end of 2019 to 345,682 thousand US dollars by the end of 2021. There is a significant jump in 2022, with total assets reaching 646,089 thousand US dollars, nearly doubling the previous year. This upward trend continues sharply into 2023, where total assets more than double again to 1,566,563 thousand US dollars. The adjusted total assets follow the same pattern closely, with minimal differences observed in 2023, indicating that goodwill adjustments have a modest impact on asset valuation.

Stockholders’ Equity

The reported stockholders’ equity also increases consistently from 192,653 thousand US dollars at the end of 2019 to 241,830 thousand US dollars by the end of 2021. A pronounced rise occurs in 2022, with equity reaching 511,316 thousand US dollars, more than doubling compared to the previous year. This growth continues in 2023, with reported equity reaching 668,677 thousand US dollars. The adjusted stockholders’ equity mirrors these increases, with a slight reduction in the 2023 figure to 629,109 thousand US dollars, which suggests some goodwill-related deductions affect equity but do not materially change the overall equity growth trend.

Overall Trends and Insights

The data reveals strong asset growth between 2019 and 2023, with the most substantial increases occurring in the last two reported years. This suggests significant business expansion or acquisitions during this period. Stockholders’ equity trends reflect similar growth patterns, indicating that the company is potentially financing growth through equity or retained earnings rather than debt. The minimal difference between reported and adjusted figures points to goodwill adjustments having a limited impact on the financial position, implying that intangible assets such as goodwill are not excessively inflating the company's asset base or equity.

Total Asset Turnover

The reported total asset turnover exhibited a marked improvement from 0.19 in 2019 to 0.76 in 2022, indicating increased efficiency in generating revenue from assets over this period. However, in 2023, there was a noticeable decline to 0.47, suggesting a reduction in the efficiency. The adjusted total asset turnover values closely mirrored the reported figures throughout the entire period, reflecting minimal impact from goodwill adjustments.

Financial Leverage

The reported financial leverage remained relatively stable around 1.2 to 1.43 from 2019 to 2022, implying a consistent use of debt relative to equity during these years. In 2023, a significant increase to 2.34 was observed, indicating a higher reliance on debt financing. The adjusted financial leverage showed a similar pattern but was slightly higher at 2.43 in 2023, pointing to some effect of goodwill adjustments on leverage ratio calculations.

Return on Equity (ROE)

ROE displayed a negative trend in the early years, with values of -26.53% and -29.11% for 2019 and 2020 respectively, signaling losses or inefficiencies in generating returns for shareholders. The negative trend moderated significantly in 2021 (-3.78%), followed by a strong positive turnaround to 42.24% in 2022. In 2023, ROE decreased to 22.03%, which, although lower than the previous year, still represents a healthy return. Adjusted ROE values followed the same trajectory, with a slightly higher final value of 23.41% in 2023, indicating goodwill adjustments have a positive influence on the equity return metric.

Return on Assets (ROA)

The ROA mirrored the ROE trends, with deeply negative returns in 2019 and 2020 (-22.04% and -24.15%), improving dramatically by 2022 to 33.43%, and subsequently decreasing but remaining positive at 9.4% in 2023. The adjusted ROA figures were consistent with reported values across all years, with a minor increase to 9.64% in 2023, underlining the modest effect of goodwill adjustments on asset efficiency in generating profits.

The financial data reveals significant growth in total assets over the five-year period from 2019 to 2023. Reported total assets increased steadily, reaching a peak of 1,566,563 thousand US dollars in 2023, which represents nearly a sevenfold increase compared to 2019. Adjusted total assets, which account for goodwill adjustments, follow a closely similar pattern, ending slightly lower at 1,526,995 thousand US dollars in 2023. This indicates that goodwill adjustments had a minor impact on the asset base in the most recent year.

Total asset turnover, a measure of efficiency in using assets to generate revenue, showed initial improvement from 0.19 in 2019 to 0.25 in 2020, followed by a marked increase to 0.69 in 2021 and 0.76 in 2022. This upward trend suggests enhanced operational efficiency or revenue growth relative to asset size during these years. However, in 2023, the total asset turnover ratio declined to 0.47, indicating a lower efficiency or revenue generation per dollar of assets compared to the preceding two years. The adjusted total asset turnover ratio mirrors this trend with marginally higher values, concluding at 0.48 in 2023.

Overall, the data indicates rapid growth in the company’s asset base over the period, accompanied by improving asset utilization efficiency until 2022, followed by a notable decline in turnover ratio in 2023. The minimal divergence between reported and adjusted figures suggests that goodwill adjustments have had limited influence on the reported asset and turnover metrics.

Total Assets

The total assets of the company demonstrated a consistent upward trend from 2019 through 2023. Reported total assets increased from $231.9 million in 2019 to $1.57 billion in 2023, representing a more than sixfold growth over five years. Adjusted total assets, which exclude goodwill, showed a similar pattern and closely track the reported totals. Notably, the largest jump occurred between 2022 and 2023, with assets more than doubling from approximately $646 million to over $1.5 billion.

Stockholders’ Equity

Stockholders’ equity also experienced growth year-over-year, increasing from $192.7 million in 2019 to $668.7 million in 2023 on a reported basis. Adjusted equity figures, which factor out goodwill, remain slightly lower but follow the same trajectory, reaching $629.1 million in 2023. The equity growth was particularly significant between 2021 and 2023, where equity more than doubled from roughly $242 million to around $630-$669 million, indicating a strengthening capital base.

Financial Leverage

The financial leverage ratio, defined as total assets divided by stockholders’ equity, exhibited fluctuations over the observed period. Initially stable at around 1.2 from 2019 to 2020, leverage rose to 1.43 in 2021 before declining somewhat to 1.26 in 2022. However, in 2023, there was a substantial increase in leverage to 2.34 on a reported basis and 2.43 on an adjusted basis. This suggests that the company increased its use of debt or other liabilities relative to equity in the most recent year, potentially as a result of asset growth outpacing equity increases.

Goodwill Adjustment Impact

The difference between reported and adjusted figures is minimal for both assets and equity, implying that goodwill represents a relatively small portion of the total asset base. This minimal impact extends to the financial leverage ratio, where adjusted leverage is slightly higher in 2023 compared to reported leverage. Overall, the adjustment for goodwill does not materially change the interpretation of the company’s financial position or leverage trends.

The data reveals notable changes in the equity and profitability metrics over the five-year period ending in 2023. Both reported and adjusted stockholders' equity demonstrate a consistent upward trajectory, indicating growth in the company's net assets.

Stockholders’ Equity Trends

Reported stockholders’ equity increased steadily from US$192,653 thousand in 2019 to US$668,677 thousand in 2023. The adjusted stockholders’ equity, which accounts for goodwill adjustments, follows a similar pattern but shows a slightly lower value in 2023 at US$629,109 thousand compared to the reported figure. This divergence suggests a recognition of goodwill impairments or revaluations that reduce the net asset base.

Return on Equity (ROE) Trends

Both reported and adjusted ROE percentages convey a markedly volatile profitability profile. In 2019 and 2020, the company experienced negative returns on equity of approximately -26.53% and -29.11%, respectively, indicating losses relative to equity. By 2021, the loss had narrowed significantly to around -3.78%, reflecting an improvement in operational performance.

A significant turnaround is observed in 2022, with ROE surging to positive territory at about 42.24%, implying substantial profitability gains. This positive trend persists in 2023, albeit with a decline to approximately 22.03% reported and 23.41% adjusted, indicating a moderation but sustained profitability. The adjusted ROE is slightly higher than the reported figure in 2023, possibly due to the effect of excluding goodwill impairments from equity calculation.

Overall, the company demonstrates robust growth in equity value accompanied by a transition from substantial negative returns to strong positive profitability within the analyzed period. The divergence between reported and adjusted equity and ROE in the final year suggests prudence in accounting measures related to goodwill, while underlying operational profitability remains strong.

Total Assets

The reported total assets exhibit a consistent upward trend over the five-year period from 2019 to 2023. Beginning at US$231,938 thousand in 2019, total assets increased moderately to US$272,042 thousand in 2020 and US$345,682 thousand in 2021. There was a significant jump in 2022, with assets reaching US$646,089 thousand, followed by a substantial rise to US$1,566,563 thousand in 2023. The adjusted total assets follow a near-identical pattern, with the only notable deviation in 2023 where adjusted assets are slightly lower at US$1,526,995 thousand compared to reported figures, indicating a minor goodwill adjustment.

Return on Assets (ROA)

The ROA percentages show marked fluctuation and improvement over the years. Negative returns characterize the years 2019 and 2020, with reported ROA at -22.04% and -24.15%, respectively, reflecting losses relative to total assets during these periods. In 2021, the loss was significantly reduced, with ROA improving to -2.64%. A notable turnaround occurs in 2022 when ROA jumps to a positive 33.43%, signaling a substantial gain relative to assets. In 2023, ROA declines to 9.4%, yet remains positive, indicating continued profitability though at a reduced level compared to the prior year. The adjusted ROA figures closely mirror the reported ones throughout, with a slight increase in 2023 to 9.64%, reflecting minor adjustments likely related to goodwill.

Overall Insights

The company demonstrated strong asset growth, particularly from 2021 onward, suggesting aggressive expansion or acquisition activity. The significant positive shift in ROA starting in 2022 indicates improved operational efficiency or profitability, reversing earlier years of negative returns. Despite some ROA decline in 2023 compared to 2022, the profitability remains positive and substantially better than in preceding years. The close alignment between reported and adjusted figures suggests minor impact of goodwill adjustments on overall asset valuation and return metrics.