Shockwave Medical Inc. (NASDAQ:SWAV)

The financial data reveals significant trends in the company's capital structure over the five-year period ending in 2023.

Total debt

The total debt remained relatively stable from 2019 to 2021, increasing slightly from 13,819 thousand US dollars to 17,130 thousand US dollars. In 2022, there was a more noticeable rise to 24,198 thousand US dollars. However, in 2023, total debt surged dramatically to 731,863 thousand US dollars, indicating a substantial increase in financial leverage or borrowing during that year.

Stockholders’ equity

Stockholders’ equity showed a robust upward trend throughout the period. It increased steadily from 192,653 thousand US dollars in 2019 to 241,830 thousand US dollars in 2021. The growth accelerated in 2022 to 511,316 thousand US dollars and continued in 2023, reaching 668,677 thousand US dollars. This suggests strengthening of the company's net asset base and possibly retained earnings accumulation or capital injections.

Debt to equity ratio

This ratio was stable at 0.07 during the first three years, declining to 0.05 in 2022, reflecting a relatively low leverage position compared to equity. The ratio then increased sharply to 1.09 in 2023, consistent with the large increase in total debt. This shift represents a significant change in the company's financial risk profile, as debt now surpasses equity by a notable margin.

Overall, the data indicates that while the company enhanced its equity base substantially over the years, 2023 marked a turning point with a major increase in debt levels and a corresponding rise in leverage. This change warrants close attention to the implications for financial stability and interest obligations going forward.