Net Profit Margin
since 2019
Calculation
Shockwave Medical Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss)1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 20.17% | = | 100 | × | 147,278) | ÷ | 730,230) |
| Dec 31, 2022 | 44.10% | = | 100 | × | 215,996) | ÷ | 489,733) |
| Dec 31, 2021 | -3.85% | = | 100 | × | (9,136) | ÷ | 237,146) |
| Dec 31, 2020 | -96.92% | = | 100 | × | (65,699) | ÷ | 67,789) |
| Dec 31, 2019 | -119.06% | = | 100 | × | (51,109) | ÷ | 42,927) |
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).
1 US$ in thousands
The net profit margin exhibited a significant and evolving trend between 2019 and 2023. Initially, the company experienced substantial net losses, resulting in negative net profit margins. However, a marked improvement occurred in subsequent years, culminating in positive and increasingly robust margins.
- Net Profit Margin Trend
- In 2019 and 2020, the net profit margin was significantly negative, registering at -119.06% and -96.92% respectively. These values indicate substantial net losses relative to revenue. The negative margin decreased in magnitude from 2019 to 2020, suggesting a lessening of losses, but remained considerably unfavorable.
- A substantial shift occurred in 2021, with the net profit margin improving to -3.85%. While still negative, this represents a considerable reduction in the loss ratio, indicating improved operational performance or cost management.
- The year 2022 witnessed a dramatic positive change, with the net profit margin surging to 44.10%. This signifies a transition to profitability and a strong ability to generate profit from revenue.
- The net profit margin continued to be positive in 2023, although it decreased to 20.17%. While lower than the previous year, this margin still demonstrates a healthy level of profitability.
The progression from substantial net losses to positive profitability, and the subsequent moderation of the margin, suggests a company undergoing a period of significant operational and financial transformation. The increasing revenue figures, coupled with the improving net income, support this interpretation.
- Revenue and Net Income Relationship
- The company’s revenue increased consistently throughout the period, growing from US$42,927 thousand in 2019 to US$730,230 thousand in 2023. This revenue growth appears to be a key driver of the improvement in net profit margin.
- Net income moved from a loss of US$51,109 thousand in 2019 to a profit of US$147,278 thousand in 2023. The magnitude of the increase in net income is substantially greater than the increase in revenue, particularly between 2020 and 2022, indicating improved cost control or operational efficiencies.
The observed trend in net profit margin suggests a strengthening financial position, although the decrease from 2022 to 2023 warrants further investigation to determine the underlying causes and potential implications for future performance.
Comparison to Competitors
Shockwave Medical Inc., net profit margin, long-term trends, comparison to competitors
| Shockwave Medical Inc. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Dec 31, 2023 | 20.17% | 14.27% | 3.52% | 25.24% | 12.03% | 6.09% |
| Dec 31, 2022 | 44.10% | 15.88% | 3.87% | 21.25% | 15.90% | 6.25% |
| Dec 31, 2021 | -3.85% | 16.42% | 4.46% | 29.85% | 11.97% | 6.06% |
| Dec 31, 2020 | -96.92% | 12.99% | 3.78% | 24.33% | 16.56% | 6.03% |
| Dec 31, 2019 | -119.06% | 11.56% | 4.66% | 30.80% | 15.16% | 5.76% |
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).
Comparison to Sector (Health Care Equipment & Services)
Shockwave Medical Inc., net profit margin, long-term trends, comparison to sector (health care equipment & services)
| Shockwave Medical Inc. | Health Care Equipment & Services | |
|---|---|---|
| Dec 31, 2023 | 20.17% | 6.43% |
| Dec 31, 2022 | 44.10% | 7.05% |
| Dec 31, 2021 | -3.85% | 7.14% |
| Dec 31, 2020 | -96.92% | 6.82% |
| Dec 31, 2019 | -119.06% | 6.91% |
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).
Comparison to Industry (Health Care)
Shockwave Medical Inc., net profit margin, long-term trends, comparison to industry (health care)
| Shockwave Medical Inc. | Health Care | |
|---|---|---|
| Dec 31, 2023 | 20.17% | 11.49% |
| Dec 31, 2022 | 44.10% | 14.65% |
| Dec 31, 2021 | -3.85% | 15.24% |
| Dec 31, 2020 | -96.92% | 10.27% |
| Dec 31, 2019 | -119.06% | 14.56% |
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).