Shockwave Medical Inc. (NASDAQ:SWAV)

Revenue

The revenue demonstrates a significant upward trend over the five-year period. Starting from approximately 42.9 million US dollars in 2019, it increased to nearly 67.8 million in 2020, marking a substantial growth. The following years continued this sharp rise, with revenue reaching 237.1 million in 2021, 489.7 million in 2022, and peaking at 730.2 million in 2023. This consistent and substantial increase indicates strong sales growth and expanding business operations.

Income (loss) from operations

The operational income shows an improving trend, transitioning from negative to positive territory. In 2019 and 2020, the company reported significant operating losses of 51.8 million and 65.7 million US dollars, respectively. However, by 2021, the losses dramatically reduced to just 0.9 million, indicating a move toward operational efficiency. The years 2022 and 2023 saw a positive turnaround with operational incomes of 124.1 million and 159.1 million US dollars, respectively, reflecting a strong improvement in operational profitability aligned with the revenue growth.

Net income (loss)

Net income trends parallel operational income but show greater volatility. The company recorded net losses of 51.1 million and 65.7 million US dollars in 2019 and 2020, respectively, followed by a reduced loss of 9.1 million in 2021. A notable improvement is observed in 2022, with net income turning positive at 216.0 million US dollars. This positive performance slightly declined in 2023 to 147.3 million but remains substantially higher than in earlier years. The shift from net losses to substantial net profits highlights enhanced overall financial performance and profitability, despite a minor dip in net income from 2022 to 2023.

Current Assets

The current assets exhibited a consistent upward trajectory over the five-year period. Starting at approximately 216.7 million US dollars at the end of 2019, there was a moderate increase to around 246.3 million in 2020, followed by a further rise to about 285.9 million in 2021. The growth became more pronounced in 2022, with current assets reaching roughly 459.3 million, and then significantly surged to approximately 1.23 billion by the close of 2023. This trend indicates a substantial improvement in liquid resources or assets expected to be converted into cash within a year.

Total Assets

Total assets displayed a similar growth pattern, beginning at approximately 231.9 million US dollars at the end of 2019. The figure increased steadily to about 272.0 million in 2020 and further to 345.7 million in 2021. In 2022, total assets saw a marked increase to around 646.1 million, nearly doubling from the previous year. By the end of 2023, total assets dramatically grew to approximately 1.57 billion. This considerable expansion suggests significant asset accumulation, possibly due to investments, acquisitions, or enhanced asset valuation.

Overall Insights

The data reveals a strong upward trend in both current and total assets, with especially notable acceleration in growth during the last two reported years. The substantial increase in current assets relative to total assets in 2023 points toward an improved asset liquidity position, which could enhance operational flexibility and financial stability. The patterns suggest an expansion phase potentially supported by increased financial resources.

The financial data over the five-year period reveals significant changes in liabilities, debt levels, and equity, indicating evolving financial structure and potential shifts in capital management.

Current Liabilities

Current liabilities show a steady increase from $24.0 million in 2019 to $25.6 million in 2020, followed by a sharp rise to $51.6 million in 2021. This upward trend continued through 2022, reaching $63.4 million, and then spiked substantially to $104.2 million by the end of 2023. This pattern suggests growing short-term obligations that may reflect increased operational activity or changes in working capital management.

Total Liabilities

Total liabilities nearly tripled from $39.3 million in 2019 to $46.4 million in 2020, then more than doubled to $103.9 million in 2021 and further increased to $134.8 million in 2022. The most notable change occurred in 2023 when total liabilities surged dramatically to $897.9 million, indicating a substantial increase in the company’s obligations, which may be due to significant borrowing or new financial commitments.

Total Debt

Total debt rose modestly from $13.8 million in 2019 to $16.6 million in 2020 and to $17.1 million in 2021. In 2022, the debt increased to $24.2 million but escalated sharply to $731.9 million in 2023. This extraordinary increase in debt level in 2023 accounts for a large portion of the rise in total liabilities, signifying possible major debt financing or leveraged strategies undertaken by the company during that year.

Stockholders’ Equity

Stockholders’ equity showed consistent growth over the period, increasing from $192.7 million in 2019 to $225.7 million in 2020, then to $241.8 million in 2021. A significant jump occurred in 2022, when equity more than doubled to $511.3 million. The upward trend continued into 2023 reaching $668.7 million, illustrating strengthening net assets and potentially retained earnings or equity financing contributing to the company’s capital base.

Overall, the data indicates a period of substantial expansion in financial liabilities and debt, particularly in the final year, alongside increasing equity. The sharp rise in debt and total liabilities in 2023 suggests notable changes in capital structure, potentially reflecting strategic financing decisions or acquisitions. Meanwhile, the sustained growth in stockholders’ equity points to an improving or growing asset base supporting the company’s financial health despite the heavier debt burden.

Operating Activities

The net cash flow from operating activities exhibited considerable fluctuations over the observed periods. In 2019 and 2020, the company experienced significant negative cash flows, amounting to -48,107 and -71,184 thousand US dollars respectively, indicating operational cash outflows. However, from 2021 onwards, a positive turnaround is evident, with net cash provided by operating activities increasing to 15,036 thousand in 2021, then sharply rising to 117,732 thousand in 2022 and further to 196,053 thousand in 2023. This reflects improved operational efficiency and potentially higher profitability or improved working capital management during these years.

Investing Activities

Cash flows related to investing activities were predominantly negative, indicating consistent investment expenditures. In 2019 and 2020, cash used in investing activities were -59,543 thousand and -107,473 thousand US dollars respectively, showing increased investment outlays. In contrast, 2021 saw a positive cash inflow of 26,416 thousand, which may represent asset disposals or other investing returns. However, this was followed by negative cash flows again in 2022 and a substantial decline in 2023 to -625,727 thousand US dollars. The steep increase in outflows in 2023 signals significant capital expenditures or acquisitions during that year.

Financing Activities

Net cash flows from financing activities displayed marked volatility. In 2019 and 2020, the company generated strong cash inflows of 208,052 thousand and 90,035 thousand US dollars respectively, suggesting fundraising or debt issuance. In 2021, there was a slight net outflow of -2,451 thousand, indicating possible debt repayments or dividends. The following years show a return to positive net cash flows, with moderate inflows in 2022 of 12,999 thousand, followed by a significant increase to 600,401 thousand in 2023. This peak likely reflects substantial capital raising or debt financing to support growth or other strategic initiatives.

The financial data reveals a notable positive shift in the earnings per share (EPS) of the company over the five-year period from 2019 to 2023. Both basic and diluted EPS figures start with negative values in 2019 and 2020, indicating losses during these years. Specifically, the basic EPS was -2.14 USD in 2019 and improved slightly to -1.99 USD in 2020. The diluted EPS mirrors this pattern exactly, reflecting the same values in those years.

In 2021, a significant improvement is observed as the EPS turns considerably less negative, reaching -0.26 USD for both basic and diluted earnings, suggesting a reduction in net losses and movement toward profitability. This transition is further confirmed by the data for 2022, where both basic and diluted EPS become positive, with values of 6.02 USD and 5.7 USD respectively. This marks a substantial turnaround in the company's financial performance, indicating that the company became profitable in 2022.

Although there is a slight decline in 2023, the EPS remains positive at 4.01 USD for basic and 3.85 USD for diluted earnings, maintaining profitability but at a lower level compared to the previous year. This could indicate challenges or increased expenses impacting net income, but overall sustained positive earnings.

Regarding dividends, no payments were made throughout the entire period, as the dividend per share remained unreported or zero. This suggests that despite the eventual profitability, the company has elected to retain earnings, potentially to support growth or other financial strategies.

Summary of Trends:

- Transition from consistent losses in 2019 and 2020 to a near break-even position in 2021.

- Achievement of positive and substantial earnings in 2022.

- Slight reduction in EPS in 2023 while maintaining profitability.

- Absence of dividend distribution throughout the period despite profitability gains.