Stock Analysis on Net

Boeing Co. (NYSE:BA)

Analysis of Property, Plant and Equipment

Microsoft Excel

Property, Plant and Equipment Disclosure

Boeing Co., balance sheet: property, plant and equipment

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Land 377 376 377 512 527
Buildings and land improvements 14,795 14,404 14,152 14,415 14,288
Machinery and equipment 16,055 15,844 15,692 16,060 15,723
Construction in progress 1,679 1,368 1,235 1,340 1,306
Gross property, plant and equipment 32,906 31,992 31,456 32,327 31,844
Accumulated depreciation (22,245) (21,442) (20,538) (20,507) (19,342)
Property, plant and equipment, net 10,661 10,550 10,918 11,820 12,502

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).

Item Description The company
Gross property, plant and equipment Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Boeing Co. gross property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.
Property, plant and equipment, net Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Boeing Co. property, plant and equipment, net decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Asset Age Ratios (Summary)

Boeing Co., asset age ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Average age ratio 68.39% 67.82% 66.08% 64.46% 61.76%
Estimated total useful life (years) 24 23 21 21 20
Estimated age, time elapsed since purchase (years) 17 15 14 13 12
Estimated remaining life (years) 8 7 7 7 8

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).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. Boeing Co. average age ratio of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. Boeing Co. estimated total useful life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Boeing Co. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.
Estimated remaining life Boeing Co. estimated remaining life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.

Average Age

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Accumulated depreciation 22,245 21,442 20,538 20,507 19,342
Gross property, plant and equipment 32,906 31,992 31,456 32,327 31,844
Land 377 376 377 512 527
Asset Age Ratio
Average age1 68.39% 67.82% 66.08% 64.46% 61.76%

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).

2023 Calculations

1 Average age = 100 × Accumulated depreciation ÷ (Gross property, plant and equipment – Land)
= 100 × 22,245 ÷ (32,906377) = 68.39%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. Boeing Co. average age ratio of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.

Estimated Total Useful Life

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Gross property, plant and equipment 32,906 31,992 31,456 32,327 31,844
Land 377 376 377 512 527
Depreciation expense 1,328 1,396 1,488 1,533 1,567
Asset Age Ratio (Years)
Estimated total useful life1 24 23 21 21 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).

2023 Calculations

1 Estimated total useful life = (Gross property, plant and equipment – Land) ÷ Depreciation expense
= (32,906377) ÷ 1,328 = 24

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. Boeing Co. estimated total useful life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Accumulated depreciation 22,245 21,442 20,538 20,507 19,342
Depreciation expense 1,328 1,396 1,488 1,533 1,567
Asset Age Ratio (Years)
Time elapsed since purchase1 17 15 14 13 12

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).

2023 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 22,245 ÷ 1,328 = 17

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Boeing Co. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.

Estimated Remaining Life

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Property, plant and equipment, net 10,661 10,550 10,918 11,820 12,502
Land 377 376 377 512 527
Depreciation expense 1,328 1,396 1,488 1,533 1,567
Asset Age Ratio (Years)
Estimated remaining life1 8 7 7 7 8

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).

2023 Calculations

1 Estimated remaining life = (Property, plant and equipment, net – Land) ÷ Depreciation expense
= (10,661377) ÷ 1,328 = 8

Asset age ratio Description The company
Estimated remaining life Boeing Co. estimated remaining life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.