Stock Analysis on Net
Stock Analysis on Net

Shockwave Medical Inc. (NASDAQ:SWAV)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Shockwave Medical Inc., income tax expense (benefit), continuing operations

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Federal 1,638 403 — — —
State 5,418 1,446 84 3 —
Foreign 5,239 259 217 77 62
Current provision for income taxes 12,295 2,108 301 80 62
Federal 21,855 (85,618) — — —
State 1,625 (11,658) — — —
Foreign (8,772) — — — —
Deferred tax provision (benefit) 14,708 (97,276) — — —
Provision (benefit) for income taxes 27,003 (95,168) 301 80 62

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
Current provision for income taxes Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Shockwave Medical Inc. current provision for income taxes increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax provision (benefit) Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Shockwave Medical Inc. deferred tax provision (benefit) decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Provision (benefit) for income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Shockwave Medical Inc. provision (benefit) for income taxes decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Effective Income Tax Rate (EITR)

Shockwave Medical Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Statutory federal income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Effective tax rate 73.78% -375.00% -16.22% -0.58% -0.58%

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
Effective tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Shockwave Medical Inc. effective tax rate decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Components of Deferred Tax Assets and Liabilities

Shockwave Medical Inc., components of deferred tax assets and liabilities

US$ in thousands

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net operating loss carryovers 60,636 60,467 85,764 73,453 49,862
Fixed and intangible assets — — 512 718 450
Accruals and reserves 12,856 10,876 7,603 2,245 1,619
Stock-based compensation 8,745 8,504 5,523 2,060 780
Research and development credits 20,736 15,250 4,698 3,379 2,336
Contributions — — 42 42 20
Lease liability 9,816 9,316 7,398 2,004 2,135
Capitalized research and development 34,511 17,791 — — —
Convertible note 22,841 — — — —
Other 92 — — — —
Deferred tax assets 170,233 122,204 111,540 83,901 57,202
Valuation allowance (57,848) (13,371) (104,773) (82,087) (55,085)
Gross deferred tax assets 112,385 108,833 6,767 1,814 2,117
Fixed and intangible assets (5,624) (1,105) — — —
Right-of-use-assets (7,592) (8,327) (6,767) (1,814) (2,117)
In process research and development (3,609) — — — —
Other — (1,833) — — —
Gross deferred tax liabilities (16,825) (11,265) (6,767) (1,814) (2,117)
Net deferred tax assets (liabilities) 95,560 97,568 — — —

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
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Shockwave Medical Inc. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Gross deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Shockwave Medical Inc. gross deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Shockwave Medical Inc. net deferred tax assets (liabilities) increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Deferred Tax Assets and Liabilities, Classification

Shockwave Medical Inc., deferred tax assets and liabilities, classification

US$ in thousands

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Deferred tax assets 99,169 97,568 — — —
Deferred tax liabilities 3,609 — — — —

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
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Shockwave Medical Inc. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.

Adjustments to Financial Statements: Removal of Deferred Taxes

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: Noncurrent deferred tax assets, net 99,169 97,568 — — —
Total assets (adjusted) 1,467,394 548,521 345,682 272,042 231,938
Adjustment to Total Liabilities
Total liabilities (as reported) 897,886 134,773 103,852 46,388 39,285
Less: Noncurrent deferred tax liabilities, net 3,609 — — — —
Total liabilities (adjusted) 894,277 134,773 103,852 46,388 39,285
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 668,677 511,316 241,830 225,654 192,653
Less: Net deferred tax assets (liabilities) 95,560 97,568 — — —
Stockholders’ equity (adjusted) 573,117 413,748 241,830 225,654 192,653
Adjustment to Net Income (loss)
Net income (loss) (as reported) 147,278 215,996 (9,136) (65,699) (51,109)
Add: Deferred income tax expense (benefit) 14,708 (97,276) — — —
Net income (loss) (adjusted) 161,986 118,720 (9,136) (65,699) (51,109)

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 Deferred Taxes (Summary)

Shockwave Medical Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net Profit Margin
Reported net profit margin 20.17% 44.10% -3.85% -96.92% -119.06%
Adjusted net profit margin 22.18% 24.24% -3.85% -96.92% -119.06%
Total Asset Turnover
Reported total asset turnover 0.47 0.76 0.69 0.25 0.19
Adjusted total asset turnover 0.50 0.89 0.69 0.25 0.19
Financial Leverage
Reported financial leverage 2.34 1.26 1.43 1.21 1.20
Adjusted financial leverage 2.56 1.33 1.43 1.21 1.20
Return on Equity (ROE)
Reported ROE 22.03% 42.24% -3.78% -29.11% -26.53%
Adjusted ROE 28.26% 28.69% -3.78% -29.11% -26.53%
Return on Assets (ROA)
Reported ROA 9.40% 33.43% -2.64% -24.15% -22.04%
Adjusted ROA 11.04% 21.64% -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 net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Shockwave Medical Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
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 adjusted 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 adjusted 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.

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

Adjusted Net Profit Margin

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)
Revenue 730,230 489,733 237,146 67,789 42,927
Profitability Ratio
Net profit margin1 20.17% 44.10% -3.85% -96.92% -119.06%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) 161,986 118,720 (9,136) (65,699) (51,109)
Revenue 730,230 489,733 237,146 67,789 42,927
Profitability Ratio
Adjusted net profit margin2 22.18% 24.24% -3.85% -96.92% -119.06%

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 Net profit margin = 100 × Net income (loss) ÷ Revenue
= 100 × 147,278 ÷ 730,230 = 20.17%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Revenue
= 100 × 161,986 ÷ 730,230 = 22.18%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Shockwave Medical Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

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 Deferred Taxes
Selected Financial Data (US$ in thousands)
Revenue 730,230 489,733 237,146 67,789 42,927
Adjusted total assets 1,467,394 548,521 345,682 272,042 231,938
Activity Ratio
Adjusted total asset turnover2 0.50 0.89 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 ÷ 1,467,394 = 0.50

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 Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets 1,467,394 548,521 345,682 272,042 231,938
Adjusted stockholders’ equity 573,117 413,748 241,830 225,654 192,653
Solvency Ratio
Adjusted financial leverage2 2.56 1.33 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
= 1,467,394 ÷ 573,117 = 2.56

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 Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) 161,986 118,720 (9,136) (65,699) (51,109)
Adjusted stockholders’ equity 573,117 413,748 241,830 225,654 192,653
Profitability Ratio
Adjusted ROE2 28.26% 28.69% -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 × Adjusted net income (loss) ÷ Adjusted stockholders’ equity
= 100 × 161,986 ÷ 573,117 = 28.26%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted 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 Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) 161,986 118,720 (9,136) (65,699) (51,109)
Adjusted total assets 1,467,394 548,521 345,682 272,042 231,938
Profitability Ratio
Adjusted ROA2 11.04% 21.64% -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 × Adjusted net income (loss) ÷ Adjusted total assets
= 100 × 161,986 ÷ 1,467,394 = 11.04%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted 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.