Stock Analysis on Net
Stock Analysis on Net

Shockwave Medical Inc. (NASDAQ:SWAV)

This company has been moved to the archive! The financial data has not been updated since May 6, 2024.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Shockwave Medical Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 22.03% = 9.40% × 2.34
Dec 31, 2022 42.24% = 33.43% × 1.26
Dec 31, 2021 -3.78% = -2.64% × 1.43
Dec 31, 2020 -29.11% = -24.15% × 1.21
Dec 31, 2019 -26.53% = -22.04% × 1.20

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).

The primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Shockwave Medical Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 22.03% = 20.17% × 0.47 × 2.34
Dec 31, 2022 42.24% = 44.10% × 0.76 × 1.26
Dec 31, 2021 -3.78% = -3.85% × 0.69 × 1.43
Dec 31, 2020 -29.11% = -96.92% × 0.25 × 1.21
Dec 31, 2019 -26.53% = -119.06% × 0.19 × 1.20

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).

The primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Shockwave Medical Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 22.03% = 0.85 × 0.96 × 24.81% × 0.47 × 2.34
Dec 31, 2022 42.24% = 1.79 × 0.98 × 25.06% × 0.76 × 1.26
Dec 31, 2021 -3.78% = — × — × -3.26% × 0.69 × 1.43
Dec 31, 2020 -29.11% = — × — × -95.01% × 0.25 × 1.21
Dec 31, 2019 -26.53% = — × — × -116.72% × 0.19 × 1.20

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).

The primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in effect of taxes measured by tax burden ratio.

Two-Component Disaggregation of ROA

Shockwave Medical Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 9.40% = 20.17% × 0.47
Dec 31, 2022 33.43% = 44.10% × 0.76
Dec 31, 2021 -2.64% = -3.85% × 0.69
Dec 31, 2020 -24.15% = -96.92% × 0.25
Dec 31, 2019 -22.04% = -119.06% × 0.19

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).

The primary reason for the decrease in return on assets ratio (ROA) over 2023 year is the decrease in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Shockwave Medical Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2023 9.40% = 0.85 × 0.96 × 24.81% × 0.47
Dec 31, 2022 33.43% = 1.79 × 0.98 × 25.06% × 0.76
Dec 31, 2021 -2.64% = — × — × -3.26% × 0.69
Dec 31, 2020 -24.15% = — × — × -95.01% × 0.25
Dec 31, 2019 -22.04% = — × — × -116.72% × 0.19

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).

The primary reason for the decrease in return on assets ratio (ROA) over 2023 year is the decrease in effect of taxes measured by tax burden ratio.

Disaggregation of Net Profit Margin

Shockwave Medical Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2023 20.17% = 0.85 × 0.96 × 24.81%
Dec 31, 2022 44.10% = 1.79 × 0.98 × 25.06%
Dec 31, 2021 -3.85% = — × — × -3.26%
Dec 31, 2020 -96.92% = — × — × -95.01%
Dec 31, 2019 -119.06% = — × — × -116.72%

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).

The primary reason for the decrease in net profit margin ratio over 2023 year is the decrease in effect of taxes measured by tax burden ratio.