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.

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).

Liabilities Overview: There is a marked increase in total liabilities over the period, rising from $39.3 million in 2019 to $897.9 million in 2023. This substantial growth is primarily driven by a significant escalation in noncurrent liabilities, which surged from $15.3 million in 2019 to $793.7 million in 2023. Current liabilities also increased, almost quadrupling from $24.0 million in 2019 to $104.2 million in 2023.
Current Liabilities Details: Accounts payable exhibited fluctuations with a decrease in 2020 followed by continuous growth to $8.9 million in 2023. Accrued liabilities showed a strong upward trend, increasing over fivefold to nearly $91.7 million by 2023. Current operating lease liabilities varied over time but ended higher in 2023 at $3.6 million compared to $0.8 million in 2019. Debt in its current portion declined by 2022 and was not reported thereafter.
Noncurrent Liabilities Details: Noncurrent debt showed variability, rising until 2022 but falling off by 2023 with no reported values. Notably, convertible debt surged dramatically to $731.9 million in 2023, becoming the dominant component of noncurrent liabilities. Related party contract liabilities remained stable at approximately $12.3 million from 2021 onward. Other noncurrent liabilities appeared for the first time in 2023 with an amount of $9.3 million.
Equity and Capital Structure: Common stock showed marginal increase from $31,000 to $37,000 over the period. Additional paid-in capital consistently rose, from $370.6 million in 2019 to $557.9 million in 2023, reflecting capital injections or stock issuance. Retained earnings moved from negative $178.0 million in 2019 to a positive $110.5 million by 2023, indicating a recovery in accumulated profitability or equity retention. Accumulated other comprehensive income fluctuated but turned positive in 2023 to $0.3 million. Overall stockholders' equity more than tripled, reaching $668.7 million in 2023.
Income and Expense Trends: Employee compensation expenses increased markedly, rising from $8.1 million in 2019 to $49.7 million in 2023, signifying expansion in workforce or compensation levels. Professional services costs also rose steadily, nearly eightfold, to $6.3 million by 2023. Research and development outlays showed variability but doubled from $3.1 million in 2019 to $8.1 million in 2023. Sales and marketing expenses appeared in the data from 2022 onward, increasing from $2.0 million to $3.5 million in 2023. Taxes (excise, sales, income, and other) increased drastically from $1.2 million in 2021 to $12.3 million in 2023, suggesting increased revenue or taxable events.
Asset Investment: Asset purchases were recorded starting in 2020 and showed a clear upward trend, reaching $7.8 million in 2023, indicative of investment in fixed or capital assets over the period.
Financial Position Summary: Total assets and liabilities plus equity grew considerably from 2019 ($232.0 million) to 2023 ($1.57 billion), indicating substantial organizational growth or financing events. The rise in liabilities, especially convertible debt, suggests increased leverage or complex financing arrangements to support growth initiatives. Improved retained earnings and increased equity reflect strengthening financial health despite rising liabilities. The growth in operational expenses, including employee costs and professional services, aligns with expansion activities.

Download chart

Shockwave Medical Inc. (NASDAQ:SWAV)

Balance Sheet: Liabilities and Stockholders’ Equity