Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Shockwave Medical Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity
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).
- Liabilities Overview
- Total liabilities as a percentage of total liabilities and stockholders’ equity exhibit significant fluctuations over the analyzed period. Starting at 16.94% in 2019, liabilities increased sharply to a peak of 30.04% in 2021, followed by a decline to 20.86% in 2022, and a marked surge to 57.32% in 2023. This final increase is primarily driven by the exponential rise in noncurrent liabilities, which surged from 11.05% in 2022 to 50.66% in 2023. The introduction of convertible debt classified as noncurrent portion at 46.72% in 2023 represents a substantial new liability component absent in prior years.
- Current Liabilities
- Current liabilities as a share of total liabilities and stockholders’ equity show a variable trend. After moderate movement from 10.35% in 2019 down to 9.4% in 2020, there was a considerable jump to 14.94% in 2021 before a decline to 6.65% by 2023. Components such as accrued liabilities experience a peak of 11.82% in 2021, subsequently diminishing to 5.85% in 2023, indicating a reduction in short-term obligations. Accounts payable fluctuate modestly with no evident upward trend. Debt classified as current portion decreases over time and eventually drops out of the data by 2022.
- Noncurrent Liabilities
- Noncurrent liabilities increase notably during the period, escalating from 6.59% in 2019 to 15.11% in 2021, then retracting slightly to 11.05% in 2022, before a sharp rise to 50.66% in 2023, primarily attributable to the emergence of convertible debt. Debt in the noncurrent portion remains relatively stable but absent in 2023, suggesting possible refinancing or reclassification. The related party contract liability shows a declining trend from 3.55% in 2021 down to 0.78% in 2023. Operating lease liabilities decrease over time, especially the noncurrent portion, which falls from 8.19% in 2021 to 2.24% in 2023.
- Stockholders’ Equity and Capital Structure
- Stockholders’ equity demonstrates a declining pattern, moving from 83.06% in 2019 to 42.68% in 2023. This decrease is influenced by a substantial reduction in additional paid-in capital, which declines steadily from 159.77% in 2019 to 35.61% in 2023. Conversely, retained earnings improve dramatically, shifting from a negative position of -76.73% in 2019 to a positive 7.05% by 2023, indicating a recovery from accumulated deficits. The common stock percentage remains negligible throughout, and accumulated other comprehensive income shows minor fluctuations around zero.
- Expense and Cost Trends
- Employee compensation as a percentage of total liabilities and stockholders’ equity peaks at 7.45% in 2021 before reducing to 3.17% in 2023, reflecting potential changes in workforce size or compensation policies. Research and development costs decrease steadily from 1.33% in 2019 to 0.52% in 2023, possibly indicating a shift in investment priorities or efficiencies gained. Professional services expense increases until 2021 at 0.76% and then declines to 0.4% in 2023. Sales and marketing expenses appear only in 2022 and 2023, showing a decreasing trend from 0.31% to 0.22%. Tax-related liabilities and expenses increase from 0.36% in 2021 to 0.79% in 2023, signaling higher tax obligations or recognition of deferred tax items.
- Asset Purchases and Other Items
- Asset purchases peak at 1.19% in 2021 but decline steadily thereafter to 0.5% in 2023, suggesting reduced capital expenditures or asset investments. Other liabilities and miscellaneous items reduce over time, with “Other” liabilities declining from 0.75% in 2019 to 0.26% in 2023, reflecting a tightening of less significant liability categories.