Name: Shockwave Medical Inc. (NASDAQ:SWAV) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Shockwave Medical Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Accounts payable	8,868)	6,721)	3,520)	1,466)	2,790)
Debt, current portion	—)	—)	5,500)	3,300)	6,667)
Employee compensation	49,706)	32,885)	25,749)	10,885)	8,139)
Asset purchases	7,788)	4,600)	4,101)	2,527)	—)
Professional services	6,269)	4,044)	2,636)	1,325)	804)
Research and development costs	8,122)	4,007)	4,605)	3,057)	3,090)
Excise, sales, income and other taxes	12,320)	4,036)	1,232)	—)	—)
Sales and marketing	3,495)	2,012)	—)	—)	—)
Other	3,996)	3,791)	2,547)	2,148)	1,744)
Accrued liabilities	91,696)	55,375)	40,870)	19,942)	13,777)
Operating lease liability, current portion	3,641)	1,278)	1,738)	873)	774)
Current liabilities	104,205)	63,374)	51,628)	25,581)	24,008)
Operating lease liability, noncurrent portion	35,103)	34,928)	28,321)	7,488)	8,125)
Convertible debt, noncurrent portion	731,863)	—)	—)	—)	—)
Debt, noncurrent portion	—)	24,198)	11,630)	13,319)	7,152)
Related party contract liability, noncurrent portion	12,273)	12,273)	12,273)	—)	—)
Deferred tax liabilities	3,609)	—)	—)	—)	—)
Long-term income tax liability	1,526)	—)	—)	—)	—)
Other liabilities	9,307)	—)	—)	—)	—)
Noncurrent liabilities	793,681)	71,399)	52,224)	20,807)	15,277)
Total liabilities	897,886)	134,773)	103,852)	46,388)	39,285)
Preferred stock, $0.001 par value per share; no shares issued and outstanding	—)	—)	—)	—)	—)
Common stock, $0.001 par value per share	37)	36)	35)	35)	31)
Additional paid-in capital	557,882)	548,960)	494,806)	469,283)	370,561)
Accumulated other comprehensive income (loss)	293)	(867)	(202)	9)	35)
Retained earnings (accumulated deficit)	110,465)	(36,813)	(252,809)	(243,673)	(177,974)
Stockholders’ equity	668,677)	511,316)	241,830)	225,654)	192,653)
Total liabilities and stockholders’ equity	1,566,563)	646,089)	345,682)	272,042)	231,938)

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).

The balance sheet exhibits a period of rapid expansion and a significant shift in capital structure between 2019 and 2023. Total liabilities grew from 39.3 million to 897.9 million, while stockholders' equity increased from 192.7 million to 668.7 million. This overall expansion indicates a transition from a lean operational scale to a significantly more capital-intensive structure, characterized by a strategic pivot in financing and an improvement in earnings.

Current Liability Trends: Current liabilities increased more than fourfold, rising from 24.0 million in 2019 to 104.2 million in 2023. This growth is primarily driven by accrued liabilities, which surged from 13.8 million to 91.7 million. Within these accruals, employee compensation showed the most consistent growth, increasing from 8.1 million to 49.7 million, while excise, sales, and income taxes rose sharply in 2023 to 12.3 million, suggesting increased operational scale and taxable income.
Long-term Debt and Noncurrent Obligations: Noncurrent liabilities remained relatively stable until 2023, when they jumped from 71.4 million to 793.7 million. This spike is almost entirely attributable to the issuance of convertible debt totaling 731.9 million in the final year of the period. Operating lease liabilities also trended upward, growing from 8.1 million in 2019 to 35.1 million in 2023, reflecting an expansion of the company's physical footprint.
Stockholders' Equity and Retained Earnings: Total stockholders' equity grew from 192.7 million to 668.7 million over the five-year period. A critical financial milestone is observed in retained earnings, which shifted from an accumulated deficit of 178.0 million in 2019 to a positive balance of 110.5 million by the end of 2023. This reversal indicates a fundamental transition from a loss-making growth phase to a period of sustained profitability.
Capital Structure and Solvency: The company's financing strategy evolved from relying primarily on equity and small amounts of debt to incorporating substantial convertible debt in 2023. While the total liabilities to equity ratio increased significantly in 2023 due to the convertible debt, the simultaneous growth in additional paid-in capital and the elimination of the accumulated deficit suggest a strengthened equity base relative to the company's early operational years.

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