Shockwave Medical Inc. (NASDAQ:SWAV)

The analysis of property, plant, and equipment data over the five-year period reveals several distinct trends and notable changes.

Equipment

There is a consistent upward trajectory in the value of equipment from 2019 through 2023. The amount increased from 5,254 thousand US dollars in 2019 to 19,687 thousand US dollars in 2023, indicating a substantial investment in equipment assets, more than tripling over the period.

Office Furniture

The value of office furniture grew steadily each year, advancing from 76 thousand US dollars in 2019 to 1,839 thousand US dollars in 2023. This reflects an expanding expenditure pattern likely related to office expansion or refurbishment.

Software

Software assets show a rise from 97 thousand US dollars in 2019 to a peak of 904 thousand US dollars in 2022, followed by a slight decline to 848 thousand US dollars in 2023. This minor reduction could be due to amortization or a slowdown in new software capitalization.

Building and Land

Values for building and land assets appear only in 2023, with 12,166 thousand and 2,268 thousand US dollars, respectively. Their absence in prior years suggests acquisitions or capitalizations in 2023, marking a strategic expansion or new property investment.

Leasehold Improvements

Leasehold improvements exhibit significant growth from 1,329 thousand US dollars in 2019 to 38,168 thousand US dollars in 2023. The accelerated increases each year, especially between 2020 to 2022, indicate ongoing enhancements to leased properties likely supporting business growth.

Construction in Progress

The value of construction in progress rises from 553 thousand US dollars in 2019 to a peak of 7,800 thousand in 2020, then fluctuates to 3,544 thousand in 2021 and rebounds to 11,016 thousand in 2023. This pattern reflects active capital projects, with phases of increased and decreased spending possibly tied to project timelines or shifting priorities.

Property and Equipment, Gross

Total gross property and equipment increased markedly from 7,309 thousand US dollars in 2019 to 85,992 thousand US dollars in 2023, reflecting overall asset base growth driven by the increases in individual categories noted above.

Accumulated Depreciation and Amortization

Accumulated depreciation rose steadily in magnitude, from -2,399 thousand US dollars in 2019 to -17,069 thousand US dollars in 2023, consistent with expanding asset holdings and the passage of time leading to increased amortization and depreciation charges.

Property and Equipment, Net

Net property and equipment values increased continuously, from 4,910 thousand US dollars in 2019 to 68,923 thousand US dollars in 2023. This sharp escalation underscores significant capital investments surpassing depreciation impacts, demonstrating substantial asset growth and potential operational expansion.

Average Age Ratio

The average age ratio shows a decline from 32.82% in 2019 to a low point of 16.05% in 2020, indicating a significant reduction in the relative age of the property, plant, and equipment. After 2020, it fluctuates, increasing to 20.19% in 2021, then decreasing slightly to 17.44% in 2022, followed by a rise again to 20.39% in 2023. This pattern suggests some variability in the age composition of the assets over time, with a generally lower average age ratio after 2019 compared to the starting point.

Estimated Total Useful Life

The estimated total useful life of assets experiences notable fluctuations throughout the period. Initially, it increases significantly from 6 years in 2019 to 10 years in 2020, then decreases to 8 years in 2021. A sharp increase to 12 years is observed in 2022, followed by a slight decline to 11 years in 2023. This trend indicates periodic reassessments of asset longevity, possibly reflecting changes in asset composition, maintenance practices, or technological updates.

Estimated Age, Time Elapsed Since Purchase

The estimated age remains constant at 2 years across all periods, suggesting a consistent approach to asset age estimation or a relatively steady pace of asset replacement or acquisition within the company.

Estimated Remaining Life

The estimated remaining life of the assets shows an overall increasing trend from 4 years in 2019 to 9 years in 2023, with a peak of 10 years in 2022. This rise in remaining life aligns inversely with the estimated age and usable life fluctuations, indicating that despite a stable asset age, the company estimates longer useful lives, which may imply improvements in asset maintenance or changes in asset type favoring durability.

The analysis of the property, plant, and equipment data from 2019 to 2023 reveals significant growth and changes in asset composition and depreciation patterns.

Property and Equipment, Gross

The gross value of property and equipment has experienced a substantial increase over the five-year period. Starting at $7.3 million in 2019, the value rose markedly to $85.99 million by the end of 2023. This trend indicates considerable investment and expansion in fixed assets, with the most notable acceleration occurring between 2021 and 2023.

Accumulated Depreciation and Amortization

The accumulated depreciation and amortization figures have similarly trended upward, increasing from $2.4 million in 2019 to $17.07 million in 2023. The growth in accumulated depreciation, especially pronounced from 2021 onwards, reflects the aging and usage of the expanded asset base, aligning with the increases in gross property and equipment.

Land

Land value appears only in the final year, 2023, with a recorded amount of $2.27 million. This suggests recent acquisition or reclassification of land assets, contributing to the overall increase in gross property and equipment.

Average Age Ratio

The average age ratio, representing the proportion of accumulated depreciation to gross asset value, has fluctuated between 16% and 33%. Starting at approximately 33% in 2019, it decreased significantly in 2020 to around 16%. Subsequent years show moderate increases, ending at about 20% in 2023. This indicates that although the asset base has expanded considerably, newer assets have been added, moderating the average age of the overall asset pool.

In summary, the company has aggressively expanded its property, plant, and equipment holdings over the observed period, accompanied by a corresponding increase in accumulated depreciation. The introduction of land assets in 2023 and the moderation in the average age ratio suggest a strategy focused on both growth and asset renewal.

Property and Equipment, Gross

The gross value of property and equipment demonstrated a consistent and significant upward trend over the five-year period. Starting at $7,309 thousand in 2019, this figure nearly tripled by 2020 to $19,490 thousand, then increased steadily each subsequent year, reaching $85,992 thousand by the end of 2023. This suggests substantial capital investment or asset acquisition activities during the period.

Land

Land value was only reported in 2023, amounting to $2,268 thousand. The absence of data in previous years could indicate either an acquisition of land in 2023 or a prior classification under a different asset category, pointing to a possible strategic expansion or diversification of asset holdings in the latest year.

Depreciation and Amortization Expense

The depreciation and amortization expense increased steadily from $1,300 thousand in 2019 to $7,700 thousand in 2023. The rising expense aligns with the growth in gross property and equipment, reflecting the higher asset base on which depreciation is calculated. The increasing rate also suggests either additions of assets with shorter useful lives or a growing share of depreciable assets.

Estimated Total Useful Life

The estimated total useful life of the assets showed some fluctuations, starting at 6 years in 2019, peaking at 12 years in 2022, and slightly decreasing to 11 years in 2023. These changes may indicate adjustments in asset composition or revised depreciation schedules, potentially due to the nature of newly acquired assets or updated management estimates regarding asset longevity.

Analysis of the property, plant, and equipment financial data reveals a consistent upward trend in both accumulated depreciation and depreciation expense over the five-year period from 2019 to 2023.

Accumulated Depreciation and Amortization

This figure has increased steadily each year, starting from 2,399 thousand US dollars at the end of 2019 and rising to 17,069 thousand US dollars by the end of 2023. The growth notably accelerated after 2020, with an apparent sharp increase between 2021 and 2023, reflecting significant cumulative depreciation on the company's assets.

Depreciation and Amortization Expense

Annual depreciation expense has more than quintupled during the same period, growing from 1,300 thousand US dollars in 2019 to 7,700 thousand US dollars in 2023. The increase in expense aligns closely with the accumulated depreciation trend, indicating higher consumption of the company's tangible and intangible assets, possibly due to asset additions or changes in amortization policies.

Time Elapsed Since Purchase

This metric remains constant at 2 years throughout all periods covered, suggesting that the company consistently applies a two-year estimate for the useful life of its assets or the particular asset group analyzed here.

Overall, the data indicates an aggressive allocation of depreciation expense relative to the asset base's useful life assumption, reflecting either accelerated depreciation methods or frequent replacement or addition of assets. This pattern suggests ongoing capital investment leading to rising expenses that affect profitability but also contribute to asset renewal and operational capacity.

Property and Equipment, Net

The net value of property and equipment has shown a consistent and significant increase over the reviewed period. Beginning at $4.9 million in 2019, the figure rose sharply to $16.4 million in 2020 and continued to grow to $24.4 million in 2021. The upward trajectory accelerated in subsequent years, reaching $48.2 million in 2022 and further expanding to $68.9 million by 2023. This pattern indicates substantial investment and asset accumulation in property and equipment over the five years.

Land

Data on land value is only available for 2023, with an amount of $2.3 million. This suggests either a recent acquisition or reporting change, as no amounts were recorded in previous years.

Depreciation and Amortization Expense

Depreciation and amortization expenses have increased steadily throughout the period. Starting from $1.3 million in 2019, the expense rose to $1.9 million in 2020, nearly doubling to $3.6 million in 2021. This upward trend continued with $4.9 million in 2022 and reached $7.7 million in 2023. The growth in these expenses aligns with the expansion of property and equipment assets, reflecting higher amortization charges due to increased asset base and possibly shorter asset lifecycles.

Estimated Remaining Life

The estimated remaining life of property and equipment in years shows some fluctuations without a clear directional trend. It increased from 4 years in 2019 to 9 years in 2020, then declined slightly to 7 years in 2021. The estimated life rose again to 10 years in 2022 and settled at 9 years in 2023. These variations might indicate changes in asset composition or re-evaluations of asset useful lives during the period.