Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Return on Equity (ROE) since 2019
- Price to Book Value (P/BV) since 2019
- Price to Sales (P/S) since 2019
- Analysis of Revenues
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Profitability Ratios (Summary)
Shockwave Medical Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Gross Profit Margin
- The gross profit margin exhibits a consistent upward trend over the entire period. Starting at approximately 61.19% in the first quarter of 2020, it increased steadily each quarter, reaching close to 87.0% by the first quarter of 2024. This continuous improvement suggests enhanced efficiency in production or cost management related to goods sold.
- Operating Profit Margin
- The operating profit margin shows a remarkable improvement from a significantly negative position in early 2020, at around -115.35%, to positive territory by the first quarter of 2022. It peaked around 26.67% in early 2023 but then exhibited a moderate decline through 2023 and into early 2024, settling near 20.52%. This pattern reflects a transition from substantial operational losses to operating profitability, followed by stabilization with slight fluctuations.
- Net Profit Margin
- The net profit margin mirrors the operating profit margin trend, starting from deeply negative values exceeding -112% in early 2020 to a positive surge over time. It achieved notable growth, surpassing 44% in the first quarter of 2023. Following this peak, the margin declined but remained firmly positive, around 20.75% in the first quarter of 2024. The variation may indicate one-time effects or volatility in non-operating items influencing net profitability.
- Return on Equity (ROE)
- Return on equity initially was negative and declined to about -34.53% in early 2021, indicating substantial losses. Thereafter, ROE improved markedly, turning positive by early 2022 and reaching a high of roughly 42.24% by the first quarter of 2023. Post-peak, ROE decreased but stayed positive, around 21.75% at the start of 2024. This suggests significant enhancement in generating shareholder value over the period, despite some volatility.
- Return on Assets (ROA)
- Return on assets followed a similar trajectory to ROE. Beginning with negative returns around -25.86%, the figure improved steadily, crossing into positive figures near the start of 2022. It peaked above 33% in early 2023 before trending downward to approximately 9.95% by early 2024. This reflects improved efficiency in asset utilization to generate profits, though recent quarters indicate a moderation in this efficiency.
Return on Sales
Return on Investment
Gross Profit Margin
Shockwave Medical Inc., gross profit margin calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Gross profit | |||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Gross profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2024 Calculation
Gross profit margin = 100
× (Gross profitQ1 2024
+ Gross profitQ4 2023
+ Gross profitQ3 2023
+ Gross profitQ2 2023)
÷ (RevenueQ1 2024
+ RevenueQ4 2023
+ RevenueQ3 2023
+ RevenueQ2 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data reveals a notably positive trend in both revenue and gross profit across the observed periods. Revenue has exhibited consistent growth from approximately $15.2 million at the beginning of 2020 to nearly $218.8 million by the first quarter of 2024. This steady increase indicates expanding sales or successful market penetration over the examined timeframe.
Gross profit follows a similar upward trajectory, moving from roughly $9.5 million at the start of 2020 to about $190.6 million by the first quarter of 2024. The acceleration in gross profit aligns with the growth in revenue, suggesting effective cost management or improvement in product mix contributing to higher profitability at the gross level.
The gross profit margin has shown a consistent and sustained improvement, beginning at 61.19% in the first quarter of 2020 and climbing to approximately 87% by early 2024. This margin expansion indicates enhanced operational efficiency, higher pricing power, or cost reductions that have improved the percentage of revenue retained as gross profit. The margin increases were particularly notable starting in 2021, with values reaching above 80% and continuing to rise slightly but steadily thereafter.
The combination of strong revenue growth and expanding gross margins points to a robust financial performance trend over this period. The company appears to have successfully scaled its operations while managing costs effectively to enhance profitability. Such financial dynamics suggest favorable market conditions or strategic improvements leading to enhanced value generation at the gross profit level.
Operating Profit Margin
Shockwave Medical Inc., operating profit margin calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Income (loss) from operations | |||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2024 Calculation
Operating profit margin = 100
× (Income (loss) from operationsQ1 2024
+ Income (loss) from operationsQ4 2023
+ Income (loss) from operationsQ3 2023
+ Income (loss) from operationsQ2 2023)
÷ (RevenueQ1 2024
+ RevenueQ4 2023
+ RevenueQ3 2023
+ RevenueQ2 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data displays notable improvements and shifts over the analyzed periods, revealing a company progressing from operational losses towards sustained profitability.
- Income (loss) from operations
- Initially, the company faced significant operating losses, with negative values peaking around early 2020. A clear upward trend is visible starting in the middle of 2021, transitioning into positive operating income. From that point, the reported quarterly income steadily increased, reaching a peak in late 2022 and maintaining elevated levels through early 2024. This progression suggests enhanced operational efficiency and cost management over the periods.
- Revenue
- Revenue exhibited a consistent growth trajectory throughout the series. Beginning with moderate figures in early 2020, the revenue showed progressive increments each quarter. There was an especially strong growth phase from mid-2021 onward, with several quarters posting substantial increases. By early 2024, revenue more than doubled compared to the initial periods, indicating expanding sales volume or pricing improvements contributing to top-line growth.
- Operating profit margin
- The operating profit margin mirrors the improvement in operating income, starting from deeply negative margins exceeding -100% in early 2020. These deficits gradually narrowed over the subsequent quarters, approaching break-even territory by late 2021. From early 2022 onward, the margin turned positive and continued to improve, stabilizing between approximately 20% and 27%. This progression denotes not only increased profitability but also a more scalable and efficient cost structure relative to revenue generation.
Overall, the data reflects a transition from a loss-making phase to sustained profitability with robust revenue growth and expanding operating margins. The strengthening operational profitability paired with rising revenue highlights an improving business model and effective disruption of prior challenges faced in early periods.
Net Profit Margin
Shockwave Medical Inc., net profit margin calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net income (loss) | |||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2024 Calculation
Net profit margin = 100
× (Net income (loss)Q1 2024
+ Net income (loss)Q4 2023
+ Net income (loss)Q3 2023
+ Net income (loss)Q2 2023)
÷ (RevenueQ1 2024
+ RevenueQ4 2023
+ RevenueQ3 2023
+ RevenueQ2 2023)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data reveals a significant evolution in key performance measures over the examined periods. Revenue shows a clear upward trend, growing steadily from approximately $15.2 million in the first quarter of 2020 to around $218.8 million by the first quarter of 2024. This consistent increase reflects strong sales growth across the analyzed timeframe.
Net income (loss) exhibits a notable transformation. In early periods, the company experienced substantial losses, with net income figures consistently in negative territory from March 2020 through June 2021, peaking at a loss of about $23.6 million in March 2021. Starting in September 2021, net income turned positive, and from that point onward, the company reported increasing profitability, rising sharply to approximately $55.3 million by the first quarter of 2024. This marks a significant improvement from earlier losses, indicating enhanced operational efficiency or higher-margin sales.
The net profit margin aligns with these observations, beginning with deep negative margins exceeding -100% in early 2020. These margins gradually improved, crossing into positive territory by March 2022 at 9.7%. The margin continued to increase sharply thereafter, reaching a peak of 44.1% in the last quarter of 2022, before settling into a range between roughly 20% and 43% in subsequent quarters. This suggests a transition from loss-making to highly profitable operations, although there is some variability in margin performance in the most recent periods.
Overall, the data illustrate a company moving from significant losses with negative profitability margins and relatively low revenue in early 2020 to strong revenue growth accompanied by improving net income and net profit margins. The trajectory highlights successful business scaling and operational improvement over time, culminating in sustained profitability and significant revenue gains through early 2024.
Return on Equity (ROE)
Shockwave Medical Inc., ROE calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net income (loss) | |||||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROE1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2024 Calculation
ROE = 100
× (Net income (loss)Q1 2024
+ Net income (loss)Q4 2023
+ Net income (loss)Q3 2023
+ Net income (loss)Q2 2023)
÷ Stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial performance over the observed periods demonstrates a significant improvement in profitability and shareholder returns. Initially, the company experienced consistent net losses from the first quarter of 2020 through mid-2021, with the net loss peaking around the first quarter of 2021. However, beginning in the third quarter of 2021, net income shifted into positive territory and exhibited a strong upward trend, reaching substantial profitability by the end of 2022 and maintaining robust positive net income through early 2024. This recovery and growth in net income indicate effective operational or strategic improvements.
Stockholders’ equity shows a steady and consistent increase throughout the entire period. Equity grew from approximately 178 million in early 2020 to over 750 million by the first quarter of 2024, reflecting retained earnings accumulation, possible capital injections, or asset growth. This steady growth in equity aligns with the improving net income trend and suggests strengthening financial health and increased investor confidence.
Return on equity (ROE) paints a clear picture of improved profitability relative to equity invested. Early in the period, ROE was significantly negative, reflecting the net losses incurred. From late 2021 onward, the ROE transitioned to positive territory and subsequently increased sharply, peaking at over 40% in late 2022 and remaining in the range of 20-40% through early 2024. This pattern indicates enhanced efficiency in generating profits from shareholders’ equity and overall improved financial performance.
- Net Income (Loss)
- Consistently negative from early 2020 through mid-2021, with losses reducing over time. Shifted to positive net income in the third quarter of 2021. Sizable growth in net income occurred through the end of 2022, followed by fluctuations but generally strong profits through the first quarter of 2024.
- Stockholders’ Equity
- Steady increase every quarter from 177,772 thousand USD in early 2020 to 751,757 thousand USD in early 2024, indicating sustained capital growth and possibly reinvestment of earnings or additional capital contributions.
- Return on Equity (ROE)
- Strongly negative through early 2021 due to losses, with a significant improvement starting late 2021. ROE peaked above 40% in late 2022 before settling to a range between 20% and 40% through early 2024, reflecting improved profitability efficiency.
Overall, the data reveals a transformation from loss-making operations to strong profitability, substantial equity growth, and improved returns to shareholders. The upward trends in net income and ROE alongside expanding equity suggest enhanced operational effectiveness and financial stability over the period analyzed.
Return on Assets (ROA)
Shockwave Medical Inc., ROA calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net income (loss) | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROA1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||
| Abbott Laboratories | |||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2024 Calculation
ROA = 100
× (Net income (loss)Q1 2024
+ Net income (loss)Q4 2023
+ Net income (loss)Q3 2023
+ Net income (loss)Q2 2023)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial performance and asset base demonstrate a significant evolution over the reported periods. Net income (loss) figures reveal a notable turnaround, shifting from consistent negative results in earlier quarters to positive and increasingly substantial earnings in later periods. The initial quarters show net losses ranging from approximately -18.8 million to -12.9 million, which then improve through to a modest positive net income around 2 million in late 2021. This trend continues with substantial growth in net income, peaking at over 140 million in the last quarter of 2022, followed by some fluctuations but maintaining strong positive earnings exceeding 55 million by the first quarter of 2024.
Total assets have shown a consistent increase throughout the quarters, suggesting ongoing growth and expansion. The asset base grew from approximately 220.7 million at the start of 2020 to over 1.64 billion by the first quarter of 2024. This steady accumulation indicates substantial investments, improving the company’s financial capacity and operational scale over time.
The return on assets (ROA) percentage reflects these changes in profitability relative to asset size. Early quarters exhibit negative ROA values, aligning with the net losses and indicating inefficiency in asset utilization. Over time, the ROA moves into positive territory starting in 2022, increasing sharply to above 33% in late 2022. Although there is some decline afterward, the ROA remains robustly positive, indicating improved profitability and effective asset use to generate earnings.
- Net Income Trend
- Transitioned from substantial losses to strong profitability, with a major earnings spike in late 2022.
- Total Assets Growth
- Demonstrated consistent expansion over the period, reflecting ongoing asset accumulation and scaling.
- Return on Assets (ROA)
- Improved from negative values, peaking sharply in late 2022, and remained positive thereafter, indicating more efficient asset utilization.
Overall, the data indicate a successful turnaround in profitability accompanied by growth in asset base and enhanced operational efficiency. This reflects positively on the company's financial health and strategic deployment of resources over the examined timeframe.