Operating Profit Margin
since 2019
Calculation
Shockwave Medical Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Income (loss) from operations1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 21.79% | = | 100 | × | 159,093) | ÷ | 730,230) |
| Dec 31, 2022 | 25.35% | = | 100 | × | 124,134) | ÷ | 489,733) |
| Dec 31, 2021 | -0.37% | = | 100 | × | (871) | ÷ | 237,146) |
| Dec 31, 2020 | -96.86% | = | 100 | × | (65,663) | ÷ | 67,789) |
| Dec 31, 2019 | -120.76% | = | 100 | × | (51,839) | ÷ | 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 operating profit margin exhibited a dramatic improvement over the period examined, transitioning from substantial losses to significant profitability. This shift is directly correlated with substantial revenue growth and a corresponding increase in income from operations.
- Operating Profit Margin Trend
- In 2019 and 2020, the operating profit margin was negative, registering at -120.76% and -96.86% respectively. These figures indicate significant operational losses relative to revenue. A slight improvement occurred in 2021, with the margin moving to -0.37%, suggesting a near-breakeven operational performance. A substantial positive change is then observed in 2022, with the operating profit margin reaching 25.35%. This trend continued into 2023, although with a slight decrease to 21.79%, still representing a strong level of profitability.
- Income from Operations
- Income from operations mirrored the trend in the operating profit margin. From losses of US$51.839 million in 2019 and US$65.663 million in 2020, it improved to a loss of US$0.871 million in 2021. By 2022, income from operations had become positive, reaching US$124.134 million, and further increased to US$159.093 million in 2023. This demonstrates a clear progression towards operational efficiency and profitability.
- Revenue Growth
- Revenue increased significantly throughout the period. Starting at US$42.927 million in 2019, it grew to US$67.789 million in 2020, then experienced substantial growth to US$237.146 million in 2021. This growth accelerated further in 2022, reaching US$489.733 million, and continued in 2023 to US$730.230 million. The consistent revenue growth appears to be a primary driver of the improved operating profit margin.
The decrease in operating profit margin from 2022 to 2023, despite continued revenue growth, warrants further investigation. While still positive, the slight reduction suggests potential increases in operating expenses or a shift in the revenue mix that may have impacted profitability.
Comparison to Competitors
Shockwave Medical Inc., operating profit margin, long-term trends, comparison to competitors
| Shockwave Medical Inc. | Abbott Laboratories | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2023 | 21.79% | 16.15% | 24.80% | 17.56% | 8.80% |
| Dec 31, 2022 | 25.35% | 19.16% | 25.35% | 18.15% | 8.83% |
| Dec 31, 2021 | -0.37% | 19.56% | 31.89% | 14.89% | 8.40% |
| Dec 31, 2020 | -96.86% | 15.48% | 24.09% | 16.57% | 8.76% |
| Dec 31, 2019 | -120.76% | 14.21% | 30.69% | 20.51% | 8.19% |
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).