Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Paying user area
Try for free
Shockwave Medical Inc. pages available for free this week:
- Statement of Comprehensive Income
- Common-Size Income Statement
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Net Profit Margin since 2019
- Analysis of Debt
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Shockwave Medical Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Solvency Ratios (Summary)
Shockwave Medical Inc., solvency 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
- Debt to Equity Ratios
- The debt to equity ratio remained relatively low and stable from March 2019 through December 2022, fluctuating between 0.04 and 0.18. A notable spike occurred in the first quarter of 2023, where the ratio sharply increased to 1.22, followed by a gradual decline over the next three quarters, ending at 0.97 in March 2024. When including operating lease liabilities, a similar pattern emerges, with values generally slightly higher than the base ratio and a comparable spike in early 2023.
- Debt to Capital Ratios
- Debt to capital ratios followed a pattern consistent with debt to equity, showing low leverage levels under 0.1 up to late 2022, with a small increase from 0.04 to 0.15 seen around early 2023. The inclusion of operating lease liabilities again results in slightly higher ratios, peaking at 0.56 in late 2023 and tapering off slightly afterward.
- Debt to Assets Ratios
- Debt to assets ratios were also low prior to 2023, maintaining levels around 0.03 to 0.13. Beginning in early 2023, a marked increase is observable, rising quickly to peaks near 0.50, indicating a higher proportion of assets financed by debt. As with other ratios, including operating lease liabilities shows consistently higher values but similar trends.
- Financial Leverage
- Financial leverage ratios maintained moderate levels around 1.2 to 1.4 through 2022. Beginning in early 2023, these ratios increased sharply to values exceeding 2.0, indicating a significant rise in the use of debt relative to equity. This elevated leverage level persists through the first quarter of 2024, though a slight downward trend is noticeable near the end of the period.
- Interest Coverage
- Interest coverage ratios were negative and deteriorating from late 2019 through most of 2020, reaching extreme negative values (around -60) which suggests an inability to cover interest expenses by operating earnings during that period. Starting in 2021, the ratio improved substantially, turning positive in early 2022 and peaking above 74 in the second quarter of 2022. Though it subsequently declined throughout 2023 and into early 2024, it remained positive, indicating improved capacity to meet interest obligations compared to earlier periods.
Debt Ratios
Coverage Ratios
Debt to Equity
Shockwave Medical Inc., debt to equity 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Debt, current portion | ||||||||||||||||||||||||||||
| Convertible debt, noncurrent portion | ||||||||||||||||||||||||||||
| Debt, noncurrent portion | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||
| Abbott Laboratories | ||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||
| 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt remained relatively stable from March 2019 through December 2022, fluctuating between approximately $13.8 million and $24.2 million. However, a substantial spike occurred starting in the first quarter of 2023, with total debt escalating sharply to a peak of over $730 million by December 2023 and remaining at a similar level into March 2024.
- Stockholders’ Equity
- Stockholders’ equity showed a general upward trend throughout the entire period. Beginning near $129 million in early 2019, it experienced fluctuations but consistently grew, reaching approximately $511 million by the end of 2022. This growth accelerated in 2023 and continued into 2024, with equity increasing to over $750 million by the first quarter of 2024.
- Debt to Equity Ratio
- The debt to equity ratio was generally low and stable, ranging between 0.04 and 0.14 from 2019 through 2022, indicating a conservative leverage position. However, in early 2023, this ratio surged dramatically, peaking at 1.22 in March 2023, reflecting the significant increase in debt relative to equity. Post this peak, the ratio showed a slight decline but remained elevated near 0.97 by March 2024, which is still substantially higher than historical levels.
- Summary
- The data reflects a period of low and stable leverage with gradually increasing equity up to the end of 2022. Starting in 2023, there was a pronounced and sharp increase in total debt, coinciding with a rise in the debt to equity ratio, signaling a notable change in the company’s capital structure toward greater leverage. Despite this increase in debt, stockholders’ equity continued to grow, suggesting capital infusion or retained earnings growth accompanying the higher debt levels.
Debt to Equity (including Operating Lease Liability)
Shockwave Medical Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Debt, current portion | ||||||||||||||||||||||||||||
| Convertible debt, noncurrent portion | ||||||||||||||||||||||||||||
| Debt, noncurrent portion | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Operating lease liability, current portion | ||||||||||||||||||||||||||||
| Operating lease liability, noncurrent portion | ||||||||||||||||||||||||||||
| Total debt (including operating lease liability) | ||||||||||||||||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||
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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
-
Total debt remained relatively stable from the first quarter of 2019 through the second quarter of 2021, fluctuating between approximately $17.6 million and $29.8 million. A significant increase is observed in the fourth quarter of 2021 when total debt sharply rose to $47.2 million, continuing an upward trend through 2022, reaching over $60 million by year-end.
Notably, in the first quarter of 2023, total debt surged dramatically to nearly $140 million, followed by subsequent irregular fluctuations but staying at elevated levels in the hundreds of millions through the last quarter of the data in 2024. This sudden and substantial rise contrasts markedly with prior periods of moderate debt levels.
- Stockholders’ Equity
-
Stockholders’ equity shows a generally upward trajectory over the entire period. Starting at approximately $129 million in early 2019, equity declined slightly by late 2019 before steadily increasing again through 2020 and 2021.
The trend accelerated significantly through 2022 and into 2023 and early 2024, with equity rising from around $268 million in early 2022 to over $751 million by the first quarter of 2024. This consistent growth in equity suggests retained earnings accumulation or new equity financing contributing to a stronger capital base over time.
- Debt to Equity Ratio (including operating lease liability)
-
The debt-to-equity ratio remained low and stable, generally below 0.2, from early 2019 through late 2022, reflecting conservative leverage levels relative to equity.
However, a pronounced spike occurred in the first quarter of 2023 when the ratio surged to 1.27, indicating a substantial increase in debt relative to equity. This was followed by a gradual decrease to around 1.03 by the first quarter of 2024, though still significantly higher than historical averages.
This pattern mirrors the dramatic increase in total debt observed in early 2023 and suggests a major financing event or capital restructuring that temporarily increased leverage substantially before some deleveraging or equity growth moderated the ratio thereafter.
Debt to Capital
Shockwave Medical Inc., debt to capital calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Debt, current portion | ||||||||||||||||||||||||||||
| Convertible debt, noncurrent portion | ||||||||||||||||||||||||||||
| Debt, noncurrent portion | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||||||||||
| Total capital | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||
| Abbott Laboratories | ||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||
| 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt remained relatively stable from March 2019 through June 2022, fluctuating within a narrow range around $15,000 to $17,000 thousand. A significant increase was observed starting in December 2022, where total debt surged dramatically to over $104,000 thousand in March 2023 and further peaked above $730,000 thousand by December 2023 and March 2024. This sharp rise indicates substantial new debt issuance or borrowing during the last year of the period.
- Total Capital
- Total capital showed variability over the period with an initial decline from $144,340 thousand in March 2019 to a low of $123,622 thousand in September 2019. Subsequent quarters showed a general upward trend, culminating in a significant increase from $370,783 thousand in December 2022 to $1,404,540 thousand by March 2024. This reflects strong growth in the capital base across the most recent years, especially the last year, consistent with the increase in debt levels.
- Debt to Capital Ratio
- The debt to capital ratio stayed within a low range (0.04 to 0.12) through June 2022, indicating conservative leverage. A noticeable uptick began in early 2023, with the ratio increasing sharply to 0.15 in March 2023 and then trending back down briefly before rising considerably to 0.55 in December 2023 and settling near 0.49 in March 2024. This pattern suggests a marked change in the capital structure, with the company taking on significantly more debt relative to its total capital in the latest periods.
Debt to Capital (including Operating Lease Liability)
Shockwave Medical Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Debt, current portion | ||||||||||||||||||||||||||||
| Convertible debt, noncurrent portion | ||||||||||||||||||||||||||||
| Debt, noncurrent portion | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Operating lease liability, current portion | ||||||||||||||||||||||||||||
| Operating lease liability, noncurrent portion | ||||||||||||||||||||||||||||
| Total debt (including operating lease liability) | ||||||||||||||||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||||||||||
| Total capital (including operating lease liability) | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||
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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- The total debt showed a relatively stable pattern from March 2019 through June 2021, fluctuating mostly between approximately $17.6 million and $29.7 million. Starting from September 2021, a noticeable increase occurred, reaching $47.2 million by December 2021 and rising further to $60.4 million by December 2022. A sharp and substantial spike is observed starting in March 2023 with debt surging dramatically to over $139 million, peaking at $776.8 million by March 2024, indicating significant new debt accumulation within this period.
- Total Capital (including operating lease liability)
- Total capital varied initially with a slight downward trend from March 2019 ($147.1 million) to September 2019 ($125.9 million), followed by an increase to $215.4 million by December 2019. From early 2020 through mid-2022, total capital generally increased, reaching $410.6 million in September 2022. This upward trend continued more sharply through late 2022 and early 2023, with total capital rising steadily to about $1.53 billion by March 2024. The capital growth, particularly sharp after early 2023, mirrors the surge in total debt levels over the same period.
- Debt to Capital Ratio (including operating lease liability)
- This ratio was relatively low and stable, fluctuating mostly between 0.09 and 0.16 from March 2019 through December 2022, indicating a conservative use of debt relative to total capital. However, starting in March 2023, there was a marked increase in leverage. The ratio rose dramatically to 0.20 in March 2023 and then further escalated to a peak of 0.56 in September 2023 before slightly declining to 0.51 by March 2024. This indicates a substantial increase in the proportion of debt financing relative to overall capital structure in the most recent periods.
- Overall Observations
- The data indicates that the organization maintained a relatively stable and conservative financial structure through 2019 to early 2023. However, the significant increases in total debt and capital beginning in early 2023 suggest major financing activities or strategic investments were undertaken. The rapidly rising debt to capital ratio during this period suggests higher financial leverage and potentially increased financial risk. This change likely reflects a strategic shift or market conditions requiring increased debt financing, warranting close monitoring of debt sustainability and capital efficiency in future periods.
Debt to Assets
Shockwave Medical Inc., debt to assets calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Debt, current portion | ||||||||||||||||||||||||||||
| Convertible debt, noncurrent portion | ||||||||||||||||||||||||||||
| Debt, noncurrent portion | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||
| Abbott Laboratories | ||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||
| 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt remained relatively stable from March 2019 through December 2022, fluctuating generally between approximately $15 million and $24 million, with a notable decrease to around $14.8 million in September 2022. However, starting from the quarter ending December 2022, there is a dramatic increase in total debt, jumping sharply to over $730 million by the end of March 2024. This represents a significant change in the company's financial leverage in a very short period.
- Total Assets
- Total assets showed a steady upward trend from March 2019 through December 2022, rising from about $157 million to nearly $646 million. This growth continued, with assets surpassing $1.5 billion by the first quarter of 2024. The asset base expanded significantly, particularly after the quarter ending December 2022, mirroring the substantial increase observed in total debt during the same period.
- Debt to Assets Ratio
- The debt to assets ratio was relatively low and stable from March 2019 through December 2022, generally ranging between 0.03 and 0.1, indicating modest leverage. There was a slight declining trend reaching a low of approximately 0.03 in September 2022. However, starting in December 2022, this ratio rose sharply, reaching values close to or exceeding 0.45 by the first quarter of 2024. This significant increase signals a rapid escalation in financial leverage, as debt levels grew at a much faster pace relative to assets.
- Overall Analysis
- From 2019 to late 2022, the company demonstrated a pattern of steady asset growth coupled with controlled debt levels, maintaining a conservative debt to assets ratio that suggested prudent financial management and increasing asset base. The sharp rise in both total debt and assets beginning in late 2022 suggests a major financing event or strategic initiative that involved substantial borrowing to acquire assets or fund operations. The accompanying rise in the debt to assets ratio highlights increased financial risk due to higher leverage. Observers should monitor future disclosures and performance indicators to assess the sustainability of this changed capital structure and its impact on financial stability.
Debt to Assets (including Operating Lease Liability)
Shockwave Medical Inc., debt to assets (including operating lease liability) 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Debt, current portion | ||||||||||||||||||||||||||||
| Convertible debt, noncurrent portion | ||||||||||||||||||||||||||||
| Debt, noncurrent portion | ||||||||||||||||||||||||||||
| Total debt | ||||||||||||||||||||||||||||
| Operating lease liability, current portion | ||||||||||||||||||||||||||||
| Operating lease liability, noncurrent portion | ||||||||||||||||||||||||||||
| Total debt (including operating lease liability) | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||
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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (Including Operating Lease Liability)
- The total debt exhibited a generally increasing trend over the periods from March 2019 to March 2024. Initially, debt levels were relatively stable around the range of approximately $17,000 to $25,000 thousand through 2019 and 2020. From late 2020 onward, a gradual rise was observed, reaching about $60,000 thousand by the first quarter of 2023. Notably, there was an extraordinary surge in debt starting mid-2023, with values escalating sharply to over $700,000 thousand by the end of 2023 and early 2024. This substantial increase indicates significant leveraging or financing activities during the latter part of the timeline.
- Total Assets
- Total assets displayed consistent growth across the reviewed periods. Starting at approximately $157,500 thousand in March 2019, assets fluctuated slightly in 2019 but generally trended upward throughout 2020 and 2021. This growth accelerated notably from 2022 onwards, with asset values rising from roughly $372,500 thousand in early 2022 to over $1,640,000 thousand by March 2024. This continuous asset expansion suggests ongoing investment or acquisition activities, contributing to an increased asset base over time.
- Debt to Assets Ratio (Including Operating Lease Liability)
- The debt to assets ratio remained relatively low and stable in the early years, fluctuating mostly between 0.09 and 0.14 from 2019 through early 2022. This indicates a conservative capital structure with debt constituting a minor proportion of total assets. However, a marked change took place starting mid-2023, where the ratio abruptly increased to approximately 0.18 and rapidly surged to exceed 0.5 by the third quarter of 2023 through early 2024. This sharp rise reflects the rapid debt accumulation outpacing asset growth during this period, signaling increased financial leverage and potential changes in financing strategy.
Financial Leverage
Shockwave Medical Inc., financial leverage calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Financial leverage1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||
| Abbott Laboratories | ||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||
| 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Assets
-
Total assets exhibited a general upward trend throughout the period analyzed. Starting at US$157.5 million at the end of Q1 2019, the assets initially decreased, reaching a low of approximately US$137.9 million by Q3 2019. Subsequently, there was a notable increase with fluctuations, reaching US$345.7 million by Q4 2021. From 2022 onward, total assets expanded significantly, culminating at US$1.64 billion by Q1 2024, demonstrating accelerated growth particularly in the last four quarters.
- Stockholders' Equity
-
Stockholders' equity followed a pattern broadly consistent with total assets, although the magnitude of growth was less pronounced in early periods. Equity decreased from US$129.2 million in Q1 2019 to about US$108.3 million by Q3 2019, paralleling the asset contraction. Post this period, equity increased steadily, reaching US$241.8 million in Q4 2021. Growth accelerated further in subsequent years, with equity reaching approximately US$751.8 million by Q1 2024, signaling a robust increase in net asset value and capitalization.
- Financial Leverage
-
The financial leverage ratio remained relatively stable and moderately above 1 during most of the earlier period, varying between 1.17 and 1.43 from Q1 2019 through Q4 2022. This indicates a moderate amount of liabilities relative to equity during this time. However, from Q1 2023, there was a marked increase in financial leverage, peaking at 2.45 in Q1 2023, and remaining elevated above 2.1 through Q1 2024. This sharp increase suggests a significant rise in the company’s use of debt or other liabilities relative to equity during the most recent periods, which could imply higher financial risk or a strategic increase in leveraging for growth.
- Overall Insights
-
The data indicates a period of initial contraction in asset base and equity through 2019, followed by sustained growth starting in late 2019 and especially accelerating after 2021. The substantial asset and equity growth in the last few quarters, coupled with rising financial leverage, suggests aggressive expansion possibly funded by increased borrowing. While growth is strong, the elevated leverage ratio in recent quarters warrants attention to the company’s risk profile and capital structure management.
Interest Coverage
Shockwave Medical Inc., interest coverage calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Net income (loss) | ||||||||||||||||||||||||||||
| Add: Income tax expense | ||||||||||||||||||||||||||||
| Add: Interest expense | ||||||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | ||||||||||||||||||||||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Interest coverage1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||||||
| Abbott Laboratories | ||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||
| Elevance Health 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), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
1 Q1 2024 Calculation
Interest coverage
= (EBITQ1 2024
+ EBITQ4 2023
+ EBITQ3 2023
+ EBITQ2 2023)
÷ (Interest expenseQ1 2024
+ Interest expenseQ4 2023
+ Interest expenseQ3 2023
+ Interest expenseQ2 2023)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT values display significant fluctuation over the reported quarters. Initially, from March 2019 to March 2021, EBIT remained negative, indicating consistent operating losses, with the lowest point occurring around March 2021 at -23,245 thousand US dollars. Beginning the second quarter of 2021, the trend reversed with EBIT turning positive and showing a strong upward trajectory through to March 2024. This positive growth phase culminated in a peak EBIT of 58,410 thousand US dollars in December 2023, followed by a slight decrease to 52,942 thousand in the first quarter of 2024. The overall trend reflects a recovery and substantial improvement in operating profitability starting mid-2021.
- Interest expense
- Interest expense remained relatively stable across most periods until early 2022, fluctuating mostly between approximately 245 and 318 thousand US dollars per quarter. A notable increase in interest expense appears in the later periods, starting around December 2022, with expenses rising sharply to 969 thousand US dollars and continuing at elevated levels above 600 thousand in subsequent quarters, peaking at 2,950 thousand in December 2023. This indicates increased borrowing costs or higher debt levels in recent quarters.
- Interest coverage ratio
- The interest coverage ratio was predominantly negative or low negative from the earliest available data points through the first quarter of 2021, reflecting EBIT losses relative to interest expenses. Starting in March 2021, the ratio began to improve markedly, turning positive and increasing substantially to a high of 74.25 by September 2022. After this peak, the ratio generally declined but remained above 20 in the most recent periods, signifying that EBIT continued to exceed interest expenses comfortably, albeit with some moderation. This indicates improved ability to cover interest obligations from operating earnings compared to the earlier periods.
- Overall insights
- The data reflects a transition phase for the company from persistent operating losses and financial stress toward significant operational profitability and improved financial stability over the reported timeframe. The marked improvement in EBIT and interest coverage ratio from mid-2021 onwards indicates successful operational recovery and enhanced capacity to service debt. However, the rise in interest expense in recent quarters suggests increasing leverage or cost of borrowing, which warrants monitoring. The company's capacity to maintain high EBIT relative to growing interest expenses will be critical for sustaining financial health.