Shockwave Medical Inc. (NASDAQ:SWAV)

Asset Turnover

The reported total asset turnover ratio exhibits a rising trend from 0.19 in 2019 to a peak of 0.76 in 2022, followed by a decline to 0.47 in 2023. The adjusted total asset turnover follows a similar pattern but achieves a higher value of 0.89 in 2022 before declining to 0.50 in 2023. This indicates an improvement in the efficiency of asset utilization up to 2022, with a noticeable slowdown or decrease in 2023.

Current Ratio

The reported current ratio starts at a very high level of 9.03 in 2019, increases slightly to 9.63 in 2020, then declines sharply to 5.54 in 2021. Following this decline, it rises again to 7.25 in 2022 and further surges to 11.76 in 2023. The adjusted current ratio mirrors this pattern closely. Overall, liquidity remains strong throughout the period, with a notable increase by the end of 2023, signaling enhanced short-term financial stability.

Debt to Equity Ratio

Debt to equity remains stable and very low from 2019 through 2022, ranging between 0.05 and 0.07 reported ratios. However, in 2023 there is a significant increase, with the ratio rising sharply to 1.09 reported and 1.34 adjusted. This indicates a major shift towards greater leverage or borrowing in the most recent year compared to previous years.

Debt to Capital Ratio

Similar to debt to equity, the debt to capital ratio stays minimal and relatively constant from 2019 to 2022, between 0.05 and 0.07 reported. A substantial increase occurs in 2023, jumping to 0.52 reported and 0.57 adjusted. This again highlights a marked increase in debt financing relative to the total capital structure in the latest year.

Financial Leverage

Financial leverage ratios show a modest increase from about 1.20 in 2019 to 1.43 in 2021, with a slight drop to 1.26 reported in 2022. A pronounced rise occurs in 2023, with reported leverage reaching 2.34 and adjusted 2.55. This suggests that the company has substantially increased its use of debt financing or financial obligations relative to equity during this period.

Net Profit Margin

The net profit margin improves significantly from deeply negative values in 2019 and 2020 (around -119% and -97%) to nearly breakeven by 2021 (-3.85% reported). In 2022, the margin shifts dramatically positive to 44.1% reported, before moderating to 20.17% in 2023. Adjusted margins follow a similar trajectory but show a somewhat smaller peak in 2022 and slight improvement in 2023. This pattern reflects a strong turnaround in profitability after initial heavy losses, with sustained but reduced profits in the last year.

Return on Equity (ROE)

The ROE mirrors the pattern seen in profitability metrics, beginning with large negative returns (-26.53% reported in 2019, and worsening to -29.11% in 2020). It improves markedly by 2021 (-3.78%) and shifts to positive territory in 2022 with a reported 42.24%, although adjusted ROE is lower at 28.57%. In 2023, reported ROE declines to 22.03%, while adjusted ROE increases slightly to 28.61%. This suggests substantial improvement in shareholder value creation over the period with some variability in the most recent year.

Return on Assets (ROA)

ROA demonstrates a similar trend to ROE and net profit margin, starting with negative returns in 2019 (-22.04% reported) and declining further in 2020 (-24.15%). Improvement is observable by 2021 (-2.64%) followed by a strong positive jump in 2022 (33.43% reported) and a decrease to 9.4% in 2023. Adjusted figures mirror these movements with a somewhat lower peak and higher 2023 result. This indicates improved asset profitability over the period, but a reduction in asset-based returns in the latest year.

The analysis of the financial data reveals substantial growth in revenue over the five-year period. Revenue increased consistently from $42,927 thousand in 2019 to $730,230 thousand in 2023, indicating strong expansion and higher sales volume.

Total Assets

Total assets showed a continuous upward trend, rising from $231,938 thousand in 2019 to $1,566,563 thousand in 2023. This signifies considerable asset growth, potentially due to investments, acquisitions, or expansion of operational capacity.

Reported Total Asset Turnover

The reported total asset turnover ratio improved from 0.19 in 2019 to a peak of 0.76 in 2022 before declining to 0.47 in 2023. This suggests that asset efficiency increased over time, reaching a high point in 2022, but somewhat declined in 2023, indicating assets were generating fewer revenues per dollar invested in the most recent period.

Adjusted Total Assets

Adjusted total assets followed a similar rising trend as reported total assets, increasing from $232,132 thousand in 2019 to $1,469,573 thousand in 2023. The adjusted figures are slightly lower than reported totals beginning in 2022, possibly reflecting some revaluation or exclusion of certain assets for a more conservative measure.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio increased from 0.18 in 2019 to 0.89 in 2022, surpassing the reported asset turnover at that point, but decreased to 0.50 in 2023. This pattern indicates a peak in asset utilization efficiency in 2022 followed by a moderate decrease in 2023, though still higher than earlier years.

Overall, the data depicts rapid growth in both revenue and asset base over the five-year span. The efficiency of asset utilization improved significantly until 2022, after which there was a notable decline in 2023 despite continued expansion of assets and revenue. The decline in turnover ratios in the most recent year may warrant further investigation to understand the underlying causes, such as asset underutilization or slower revenue growth relative to asset increases during that period.

The financial data reveals a significant upward trend in the company's liquidity position over the analyzed period. Current assets have displayed a consistent and marked increase, starting from approximately $217 million in 2019 and rising to nearly $1.23 billion by the end of 2023. This substantial growth suggests an expanding asset base available to meet short-term obligations.

Current liabilities have also increased but at a considerably slower rate compared to current assets. Beginning at around $24 million in 2019, current liabilities rose to just over $104 million by 2023. Although this represents an increase, the pace is moderate relative to the growth in current assets.

Current Ratio

The reported current ratio exhibits fluctuating values but maintains an overall increasing trajectory. It peaked initially at 9.63 in 2020, declined to 5.54 in 2021, and then steadily climbed to a high of 11.76 in 2023. This ratio indicates an improving capacity to cover short-term liabilities with current assets, with the most recent figure reflecting a very robust liquidity position.

Adjusted Current Assets and Ratio

The adjusted current assets closely mirror the values of the reported current assets, with only minor differences noted. Correspondingly, the adjusted current ratio follows a very similar pattern to the reported current ratio, reinforcing the observation of significant liquidity enhancement over the period.

Overall, the company demonstrates strengthening financial stability in terms of short-term asset coverage relative to liabilities. The substantial increase in current assets outpacing liabilities and the improved current ratio suggest a more secure liquidity margin, potentially providing greater flexibility and financial resilience going forward.

The financial data over the period from 2019 to 2023 reveals notable shifts in the company's capital structure and debt management. There is a clear upward trend in both total and adjusted debt, with a significant spike observed in 2023. This sharp increase in debt contrasts with the more moderate growth in stockholders' equity, leading to considerable changes in leverage ratios.

Total debt

Total debt experienced moderate increases from 2019 to 2022, rising from approximately US$13.8 million to US$24.2 million. However, in 2023, total debt surged dramatically to around US$731.9 million, marking an unprecedented rise compared to prior years.

Stockholders' equity

Stockholders' equity demonstrated consistent growth from 2019 through 2021, increasing from about US$192.7 million to US$241.8 million. In 2022, equity saw a substantial jump to approximately US$511.3 million and continued to grow to US$668.7 million in 2023, albeit at a slower pace than debt in the final year.

Reported debt to equity ratio

This ratio remained quite stable and low between 2019 and 2021, consistently around 0.07. It declined slightly in 2022 to 0.05, suggesting a conservative leverage position during these years. However, the ratio increased dramatically to 1.09 in 2023, reflecting the large escalation in debt relative to equity.

Adjusted total debt

When considering adjusted total debt, a similar pattern emerges. Starting at US$22.7 million in 2019, this figure increased steadily to US$60.4 million in 2022, followed by a sharp rise to approximately US$770.6 million in 2023. This adjustment further underscores the substantial growth in debt obligations in the latest period.

Adjusted stockholders’ equity

Adjusted equity started near US$192.8 million in 2019 and grew to US$242.2 million by 2021. Thereafter, it increased to US$414.5 million in 2022 but decreased relative to the reported equity level in 2023 at US$575.3 million, highlighting differences in adjustments applied, although the overall increasing trend remains evident.

Adjusted debt to equity ratio

This ratio rose from 0.12 in 2019 to 0.19 in 2021, then declined to 0.15 in 2022, indicating some variability in leverage when accounting for adjustments. The ratio sharply escalated to 1.34 in 2023, reflecting a considerable increase in adjusted debt relative to adjusted equity, consistent with observations from other debt-related measures.

Overall, the data suggests that the company maintained relatively conservative leverage from 2019 through 2022, with controlled debt levels and growing equity. However, the year 2023 marks a pronounced shift toward higher leverage, with debt growing disproportionately compared to equity. This shift is evident in both reported and adjusted figures, as the debt-to-equity ratios increased markedly, suggesting a strategic or operational change impacting the company's capital structure.

The financial data reveals significant changes in the company's debt and capital structure over the five-year period. Notably, total debt shows a relatively stable and moderate increase from 2019 through 2022, ranging between approximately $13.8 million and $24.2 million. However, in 2023, total debt experiences an extraordinary surge, rising sharply to $731.9 million, which is a substantial increase compared to previous years.

Total capital concurrently grows steadily from about $206.5 million in 2019 to $535.5 million in 2022, demonstrating consistent capital accumulation. In 2023, total capital more than doubles, reaching approximately $1.4 billion. This indicates major capital expansion aligned with the dramatic rise in total debt.

The reported debt to capital ratio remains relatively low and stable from 2019 to 2021, staying around 0.07, suggesting controlled leverage during this period. It further decreases to 0.05 in 2022, indicating a relatively stronger capital base compared to debt. However, in 2023 this ratio escalates significantly to 0.52, reflecting the sharp increase in debt relative to capital and a marked shift in the company’s leverage profile.

When considering adjusted figures, adjusted total debt increases gradually from $22.7 million in 2019 to $47.2 million in 2021, followed by a moderate rise to $60.4 million in 2022. Similar to reported debt, adjusted total debt soars in 2023 to $770.6 million. Adjusted total capital follows a consistent upward trend through 2022, growing from $215.6 million to $474.9 million, and then expands significantly to $1.35 billion in 2023.

The adjusted debt to capital ratio shows a slight decline from 0.11 in 2019 to 0.10 in 2020, followed by an increase to 0.16 in 2021. It decreases somewhat to 0.13 in 2022, before climbing sharply to 0.57 in 2023. This pattern indicates a generally stable leverage position with some fluctuations until 2022, followed by a pronounced increase in leverage in 2023 based on adjusted metrics as well.

Overall, the data indicates a stable financial structure with relatively low leverage from 2019 through 2022. The significant increases in both debt and capital in 2023, alongside the corresponding jumps in debt to capital ratios, suggest a strategic shift or substantial financing event that has markedly affected the company’s capital structure and leverage. This change warrants further investigation into its causes and implications for financial risk and capital management going forward.

Over the analyzed period, the company exhibited significant growth in both total assets and stockholders’ equity, with total assets increasing from approximately $232 million at the end of 2019 to nearly $1.57 billion by the end of 2023. This represents a compound and accelerating expansion, particularly notable between 2021 and 2023.

Total Assets

Total assets rose consistently each year, with a moderate increase from 2019 to 2021, followed by a sharp escalation in 2022 and an even more pronounced growth in 2023. This pattern suggests accelerated asset accumulation or acquisition in recent years.

Stockholders’ Equity

Stockholders’ equity also increased steadily, moving from about $193 million in 2019 to approximately $669 million in 2023. While this growth is significant, the equity expansion was more gradual compared to total asset growth, especially notable between 2022 and 2023 where the asset base surged more rapidly than equity capital.

Financial Leverage (Reported)

The reported financial leverage ratio fluctuated but trended upward overall, starting at 1.2 in 2019, peaking at 1.43 in 2021, dipping to 1.26 in 2022, and then rising sharply to 2.34 in 2023. This indicates an increasing reliance on debt or other liabilities relative to equity, particularly in the most recent year, implying greater financial risk or more aggressive financing strategies.

Adjusted Figures

Adjusted total assets and adjusted stockholders’ equity mirror the trends observed in reported values, with adjusted assets rising from approximately $232 million in 2019 to nearly $1.47 billion in 2023, and adjusted equity increasing from about $193 million to $575 million over the same period.

Adjusted Financial Leverage

The adjusted financial leverage ratio follows a similar trajectory to the reported leverage, starting at 1.2 in 2019, peaking at 1.43 in 2021, slightly higher than the reported figure in 2022 at 1.33, and then increasing markedly to 2.55 in 2023. The adjusted ratio indicates a somewhat greater level of leverage than the reported values, highlighting an intensification of financial leverage.

Overall, the financial data demonstrates a period of robust growth in asset base and shareholder equity, accompanied by a rising leverage ratio, especially in the most recent year observed. The sharp appreciation of financial leverage suggests increased borrowing or obligations, which may contribute to higher financial risk but potentially also higher growth opportunities through leverage. The consistency between reported and adjusted figures affirms the reliability of the trends and the substantial expansion in scale and financial structuring of the company.

Net income (loss) trend

The net income shows a significant improvement over the analyzed period. Initially, substantial losses were recorded, with a peak loss of -65,699 thousand US dollars in 2020. However, there is a marked turnaround observed in 2022, where net income shifted to a considerable profit of 215,996 thousand US dollars, followed by a slight decline yet still maintaining a positive net income of 147,278 thousand US dollars in 2023.

Revenue growth

Revenue exhibited strong growth throughout the period. Starting at 42,927 thousand US dollars in 2019, it more than doubled by 2020 and surged significantly in subsequent years, reaching 730,230 thousand US dollars in 2023. This growth trajectory indicates a rapid expansion in sales and market presence.

Reported net profit margin analysis

The reported net profit margin moved from deeply negative figures in 2019 and 2020, reflecting substantial losses relative to revenue, to a near-break-even point in 2021 with -3.85%. A positive margin of 44.1% was achieved in 2022, before declining to 20.17% in 2023. This indicates improved profitability but with some fluctuation in margins post-2021.

Adjusted net income (loss) dynamics

Adjusted net income, which likely excludes certain non-recurring or non-operational items, mirrors the net income trend but with generally less extreme values. Losses peaked in 2020 at -65,539 thousand US dollars and improved steadily thereafter. By 2022, adjusted net income turned positive at 118,415 thousand US dollars and further increased to 164,615 thousand US dollars in 2023, suggesting ongoing operational profitability.

Adjusted net profit margin evolution

Adjusted net profit margin followed a similar pattern to reported net profit margin, with heavy losses around -119% in 2019 and nearly -97% in 2020. Improvement continues with a margin close to -4% in 2021, then a rise to 24.18% in 2022 and a slight increase to 22.54% in 2023, indicating solid operational margin recovery and stabilization.

Overall insights

The data illustrates a company transitioning from significant losses to solid profitability, supported by strong revenue growth. The substantial improvement in both reported and adjusted net income and their corresponding profit margins from 2021 onward highlights effective cost management or operational enhancements. While the margins peaked in 2022, a slight reduction in 2023 suggests competitive pressures or increased costs but profitability remains healthy. The adjusted figures confirm that underlying business operations have become profitable, with improved financial performance sustained over the last two years.

The financial data reveals significant fluctuations and notable recovery trends over the period analyzed. Initially, from 2019 through 2021, the company experienced consistent net losses, although the magnitude of these losses decreased substantially by 2021.

Specifically, net income (loss) worsened from -51,109 thousand USD in 2019 to a peak loss of -65,699 thousand USD in 2020, then improved sharply to a much lower loss of -9,136 thousand USD in 2021. Following this period of loss, a pronounced turnaround occurred with net income achieving positive results in 2022 and 2023, reaching 215,996 thousand USD and 147,278 thousand USD respectively. Despite a slight decrease in net income from 2022 to 2023, the profits remained substantial and reflective of a recovery.

Stockholders’ equity showed a consistent upward trend throughout the five-year span, rising from 192,653 thousand USD in 2019 to 668,677 thousand USD in 2023. There was a marked acceleration in the growth of equity from 2021 onwards, with a particularly strong increase recorded in 2022. This suggests that the company was able to strengthen its financial base significantly during the recovery period.

Reported return on equity (ROE) mirrored the trajectory of net income. The company experienced negative ROE values from 2019 through 2021, indicating unprofitable operations relative to equity. The ROE was at its lowest in 2020 at -29.11%. A substantial positive shift is evident in 2022 when the ROE climbed to 42.24%, followed by a reduction to 22.03% in 2023, though maintaining a strong return level relative to the earlier years.

Adjusted figures reflect a similar pattern. Adjusted net income follows the same trend as reported net income, with losses diminishing over the initial years and turning to profit in the last two years, rising to 118,415 thousand USD in 2022 and 164,615 thousand USD in 2023. The adjusted stockholders’ equity also increased consistently, though the values in 2022 and 2023 are slightly lower than the reported equity, indicating some adjustments made to equity components during these years.

The adjusted ROE follows the adjusted net income trend, with negative returns from 2019 to 2021 and a positive recovery phase thereafter. The adjusted ROE increased to 28.57% in 2022 and further slightly to 28.61% in 2023, indicating a robust profitability improvement on an adjusted basis, slightly better than the reported ROE in 2023.

In summary, the financial data reflect an initial period of losses and negative returns on equity followed by a strong recovery phase starting in 2022. Both net income and equity substantially improved, driving significant positive returns on equity. The adjusted metrics confirm the underlying improvement in operational profitability and equity value, signaling enhanced financial health and performance stability in the most recent years.

The financial data reveals significant fluctuations and notable trends over the five-year period under review. The net income (loss) demonstrates a progression from consistent losses in the years 2019 through 2021, with the magnitude of losses decreasing substantially by 2021. A remarkable turnaround occurs from 2021 to 2022, where the company reports a strong net income of $215,996 thousand, followed by a slight decline to $147,278 thousand in 2023.

Total assets show a steady and substantial increase over the years. Starting at $231,938 thousand in 2019, assets expand moderately through 2021 and experience an accelerated growth phase from 2021 onward, reaching $1,566,563 thousand by the end of 2023. This considerable asset growth could be indicative of increased capital investment, acquisitions, or expansion activities.

Return on assets (ROA), both reported and adjusted, mirrors the income trend but with more volatility. The reported ROA starts with negative values in 2019 and 2020 (-22.04% and -24.15%, respectively), improving substantially by 2021 (-2.64%). A notable positive spike is observed in 2022 (33.43%), which diminishes to 9.4% in 2023. Adjusted ROA follows a similar pattern, slightly lower in magnitude in later years but still indicating a marked improvement from negative returns to positive profitability from 2021 onward.

The adjusted net income data closely aligns with the reported net income figures, showing negative results through 2021, turning positive in 2022 and increasing further in 2023. The adjusted total assets trend similarly to the reported total assets but show slightly lower values starting in 2022, which may reflect recalibrations for non-operational items or asset revaluations.

In summary, the company experiences a transition from losses to profitability starting in 2022, coinciding with sharp asset growth and improved asset utilization efficiency. Despite the reduced net income in 2023 relative to 2022, returns remain positive. This indicates an overall strengthening financial position and enhanced operational performance over the analyzed period.