Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Shockwave Medical Inc., long-term (investment) activity ratios
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).
- Net fixed asset turnover
- The net fixed asset turnover ratio experienced a significant decline from 8.74 in 2019 to 4.14 in 2020, indicating a reduction in revenue generated per unit of fixed assets during that year. Subsequently, there was a marked recovery and consistent improvement over the following years, reaching 10.59 by 2023. This suggests enhanced efficiency in utilizing fixed assets to generate sales, surpassing the initial 2019 level.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- Considering operating leases and right-of-use assets, the turnover ratio showed a declining trend from 3.13 in 2019 to 2.83 in 2020, followed by a continuous upward trajectory to 7.4 in 2023. This pattern reflects improved operational effectiveness and asset utilization related to leased assets over time, with 2023 levels more than doubling those of 2020.
- Total asset turnover
- The total asset turnover ratio increased from 0.19 in 2019 to 0.76 in 2022, indicating an overall enhancement in the usage of total assets to generate revenue. However, there was a notable decline to 0.47 in 2023, which could signal a reduction in asset efficiency or a buildup in asset base that did not correspond to proportional revenue growth in the latest period.
- Equity turnover
- Equity turnover showed a steady increase from 0.22 in 2019 to 0.98 in 2021, maintaining a similar level at 0.96 in 2022 before rising again to 1.09 in 2023. This suggests an improving effectiveness in using shareholders' equity to generate revenue, with a solid upward trend implying better returns on equity investment over the years analyzed.
Net Fixed Asset Turnover
Shockwave Medical Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | 730,230) | 489,733) | 237,146) | 67,789) | 42,927) | |
| Property and equipment, net | 68,923) | 48,152) | 24,361) | 16,362) | 4,910) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 10.59 | 10.17 | 9.73 | 4.14 | 8.74 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | 3.95 | 4.76 | 4.81 | 3.83 | — | |
| Elevance Health Inc. | 39.05 | 36.07 | 34.94 | 34.69 | — | |
| Intuitive Surgical Inc. | 2.01 | 2.62 | 3.04 | 2.76 | — | |
| Medtronic PLC | 5.61 | 5.85 | 5.77 | 5.99 | — | |
| UnitedHealth Group Inc. | 32.10 | 31.81 | 31.81 | 29.64 | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | 17.57 | 17.82 | 17.31 | — | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Health Care | 7.22 | 7.88 | 7.74 | — | — | |
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 2023 Calculation
Net fixed asset turnover = Revenue ÷ Property and equipment, net
= 730,230 ÷ 68,923 = 10.59
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue demonstrated a substantial and consistent increase throughout the analyzed period. Starting at 42,927 thousand USD in 2019, it increased to 67,789 thousand USD in 2020, then experienced a more pronounced growth reaching 237,146 thousand USD in 2021. This upward trajectory continued with significant jumps to 489,733 thousand USD in 2022 and 730,230 thousand USD in 2023, indicating robust business expansion and increasing sales performance over the five-year span.
- Property and Equipment, Net
- The net value of property and equipment displayed a marked increase as well. It rose from 4,910 thousand USD in 2019 to 16,362 thousand USD in 2020, showing more than a threefold increase early in the period. This growth persisted in subsequent years, climbing to 24,361 thousand USD in 2021, then nearly doubling to 48,152 thousand USD in 2022, and further increasing to 68,923 thousand USD by 2023. The trend reflects continuous investment in fixed assets, possibly supporting capacity expansion and operational growth.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio exhibited fluctuations but generally remained strong and showed an improving trend. In 2019, the ratio was notably high at 8.74, indicating efficient use of fixed assets to generate revenue. However, it declined significantly to 4.14 in 2020, possibly due to rapid infrastructure investments outpacing immediate revenue growth. From 2021 onwards, the ratio increased consistently: 9.73 in 2021, 10.17 in 2022, and 10.59 in 2023. This improvement suggests enhanced efficiency in utilizing fixed assets to support rising revenue levels as the company matured its asset base.
- Overall Insights
- Overall, the data reveals a company undergoing significant growth, characterized by expanding revenues and substantial investment in property and equipment. After an initial dip in asset turnover, efficiency in utilizing fixed assets to generate sales improved and exceeded previous levels, indicating successful operational scaling. The upward revenue trend, coupled with increased asset investment and improving turnover ratios, suggests effective management of growth, asset utilization, and capacity enhancement over the five-year period.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Shockwave Medical Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | 730,230) | 489,733) | 237,146) | 67,789) | 42,927) | |
| Property and equipment, net | 68,923) | 48,152) | 24,361) | 16,362) | 4,910) | |
| Operating lease right-of-use assets | 29,707) | 32,365) | 27,496) | 7,568) | 8,825) | |
| Property and equipment, net (including operating lease, right-of-use asset) | 98,630) | 80,517) | 51,857) | 23,930) | 13,735) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 7.40 | 6.08 | 4.57 | 2.83 | 3.13 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Abbott Laboratories | 3.56 | 4.25 | 4.26 | 3.42 | — | |
| Elevance Health Inc. | 34.43 | 31.64 | 30.12 | 29.26 | — | |
| Intuitive Surgical Inc. | 1.97 | 2.53 | 2.93 | 2.66 | — | |
| Medtronic PLC | 4.72 | 5.06 | 4.84 | 5.02 | — | |
| UnitedHealth Group Inc. | 22.48 | 21.54 | 21.54 | 19.55 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Health Care Equipment & Services | 14.40 | 14.39 | 13.89 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Health Care | 6.36 | 6.90 | 6.75 | — | — | |
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 2023 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Property and equipment, net (including operating lease, right-of-use asset)
= 730,230 ÷ 98,630 = 7.40
2 Click competitor name to see calculations.
- Revenue
- The revenue exhibited a consistent and significant upward trend over the analyzed period. Starting at 42,927 thousand US dollars in 2019, revenue grew by approximately 58% to 67,789 thousand US dollars in 2020. A more pronounced increase occurred in 2021, with revenue reaching 237,146 thousand US dollars, more than tripling from the previous year. This upward momentum continued into 2022 and 2023, with revenues of 489,733 thousand and 730,230 thousand US dollars, respectively, indicating a strong expansion in the company's market presence and sales volume.
- Property and Equipment, Net (including operating lease, right-of-use asset)
- The net value of property and equipment including right-of-use assets steadily increased each year. Starting from 13,735 thousand US dollars in 2019, it rose to 23,930 thousand in 2020, showing a significant investment in fixed assets. This growth accelerated in subsequent years, reaching 51,857 thousand in 2021, 80,517 thousand in 2022, and 98,630 thousand US dollars in 2023. The consistent rise suggests ongoing capital expenditures and asset acquisitions, likely supporting the company's operational expansion.
- Net Fixed Asset Turnover (including operating lease, right-of-use asset)
- The net fixed asset turnover ratio demonstrates increasing efficiency in generating revenue from fixed assets. It started at 3.13 in 2019 and slightly declined to 2.83 in 2020, potentially due to increased asset base outpacing revenue growth in that year. However, the ratio sharply improved in the following years, reaching 4.57 in 2021, 6.08 in 2022, and 7.4 in 2023. This upward trajectory indicates that the company has been able to leverage its fixed assets more effectively to generate higher sales, reflecting improved operational efficiency and asset utilization.
Total Asset Turnover
Shockwave Medical Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | 730,230) | 489,733) | 237,146) | 67,789) | 42,927) | |
| Total assets | 1,566,563) | 646,089) | 345,682) | 272,042) | 231,938) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.47 | 0.76 | 0.69 | 0.25 | 0.19 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Abbott Laboratories | 0.55 | 0.59 | 0.57 | 0.48 | — | |
| Elevance Health Inc. | 1.56 | 1.51 | 1.41 | 1.39 | — | |
| Intuitive Surgical Inc. | 0.46 | 0.48 | 0.42 | 0.39 | — | |
| Medtronic PLC | 0.34 | 0.35 | 0.32 | 0.32 | — | |
| UnitedHealth Group Inc. | 1.34 | 1.31 | 1.34 | 1.30 | — | |
| Total Asset Turnover, Sector | ||||||
| Health Care Equipment & Services | 1.10 | 1.06 | 1.02 | — | — | |
| Total Asset Turnover, Industry | ||||||
| Health Care | 0.63 | 0.66 | 0.62 | — | — | |
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 2023 Calculation
Total asset turnover = Revenue ÷ Total assets
= 730,230 ÷ 1,566,563 = 0.47
2 Click competitor name to see calculations.
The total asset turnover ratio exhibited a notable upward trend from 2019 through 2022, followed by a decline in the most recent period. This indicates a changing relationship between revenue generated and the assets employed to produce that revenue.
- Total Asset Turnover Trend
- In 2019, the total asset turnover ratio was 0.19. This increased to 0.25 in 2020, suggesting improved asset utilization. A significant jump to 0.69 was observed in 2021, indicating a substantial increase in revenue generated per dollar of assets. The ratio continued to rise, reaching 0.76 in 2022, representing the peak value within the observed period. However, in 2023, the ratio decreased to 0.47, signaling a less efficient utilization of assets compared to the prior year.
The substantial increase in the ratio from 2020 to 2021 and 2022 aligns with the significant growth in revenue during those years. The decrease in 2023, despite continued revenue growth, suggests that asset growth outpaced revenue growth. This could be due to investments in new assets that have not yet fully contributed to revenue generation, or an increase in working capital requirements.
- Revenue and Asset Relationship
- The company demonstrated increasing efficiency in converting its assets into revenue from 2019 to 2022. However, the 2023 figures indicate a potential shift in this dynamic. While revenue continued to increase, the rate of asset accumulation was higher, resulting in a lower turnover ratio. This warrants further investigation to determine the nature of the asset investments and their expected impact on future revenue.
The observed decline in the total asset turnover ratio in 2023 should be monitored in subsequent periods to assess whether it represents a temporary fluctuation or a sustained trend. Continued monitoring will provide insights into the company’s ability to effectively manage its assets and generate revenue.
Equity Turnover
Shockwave Medical Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | 730,230) | 489,733) | 237,146) | 67,789) | 42,927) | |
| Stockholders’ equity | 668,677) | 511,316) | 241,830) | 225,654) | 192,653) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 1.09 | 0.96 | 0.98 | 0.30 | 0.22 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Abbott Laboratories | 1.04 | 1.19 | 1.20 | 1.06 | — | |
| Elevance Health Inc. | 4.33 | 4.29 | 3.80 | 3.64 | — | |
| Intuitive Surgical Inc. | 0.54 | 0.56 | 0.48 | 0.45 | — | |
| Medtronic PLC | 0.61 | 0.60 | 0.59 | 0.57 | — | |
| UnitedHealth Group Inc. | 4.14 | 4.14 | 3.98 | 3.90 | — | |
| Equity Turnover, Sector | ||||||
| Health Care Equipment & Services | 2.66 | 2.61 | 2.42 | — | — | |
| Equity Turnover, Industry | ||||||
| Health Care | 1.69 | 1.69 | 1.67 | — | — | |
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 2023 Calculation
Equity turnover = Revenue ÷ Stockholders’ equity
= 730,230 ÷ 668,677 = 1.09
2 Click competitor name to see calculations.
The financial data reveals significant growth in revenue over the five-year period. From 2019 to 2023, revenue increased markedly from approximately $42.9 million to about $730.2 million, reflecting a strong upward trajectory year-over-year. The most substantial jump occurred between 2020 and 2021, where revenue more than tripled, and this strong growth continued through 2022 and 2023.
Stockholders' equity also exhibited a considerable increase, rising from $192.7 million in 2019 to $668.7 million by the end of 2023. The growth in equity was steady, with a particularly sharp increase observed from 2021 to 2022, when equity more than doubled. This indicates an enhanced capitalization position and potentially accumulated retained earnings or additional equity financing during this period.
Equity turnover, defined as the ratio of revenue to stockholders’ equity, showed an increasing trend overall. Starting at a low of 0.22 in 2019, the ratio more than quadrupled by 2021 to 0.98, followed by a slight decline in 2022 to 0.96, and then a modest rise to 1.09 in 2023. The increasing equity turnover ratio suggests improving efficiency in generating revenue from equity. The peak near parity in recent years indicates that the company is generating revenue roughly equivalent to its shareholders' equity, which could reflect enhanced asset utilization or operational effectiveness.
Overall, the company demonstrated robust revenue growth while expanding its equity base. The trends imply both strong market performance and an increasing ability to use equity capital efficiently to generate sales. The consistent improvement in equity turnover underscores a positive operational dynamic concurrent with the expansion of the financial base.