Amazon.com Inc. (NASDAQ:AMZN)

The data indicates a consistent upward trend in the company's investment in property, plant, and equipment over the five-year period under review. Each category of assets shows notable growth, suggesting ongoing capital expenditures and asset acquisitions to support operational capacity and expansion.

Land and Buildings

There is a steady increase in the value of land and buildings, rising from US$57,324 million in 2020 to US$123,039 million in 2024. This represents more than a doubling of the asset base in this category, with particularly strong growth between 2023 and 2024.

Equipment

Equipment values also exhibit significant growth, from US$97,224 million in 2020 to US$218,893 million in 2024. The increase each year is substantial and consistent, indicating sustained investment in machinery and technology assets.

Other Assets

This category shows a more modest but steady increase, from US$3,772 million in 2020 to US$5,487 million by 2024. The growth rate here is less pronounced compared to other asset categories but still positive.

Construction in Progress

The value of construction in progress fluctuates slightly but overall demonstrates a strong upward movement, ending at US$46,636 million in 2024 compared to US$15,228 million in 2020. Notably, there was a minor decline in 2023 before rising sharply again in 2024, reflecting ongoing capital projects nearing completion or being initiated.

Gross Property and Equipment

The aggregate gross property and equipment balance increases markedly from US$173,548 million in 2020 to US$394,055 million in 2024. This near doubling over five years confirms a significant expansion in fixed assets.

Accumulated Depreciation and Amortization

Accumulated depreciation and amortization increase from -US$60,434 million in 2020 to -US$141,390 million in 2024, indicating the aging of the asset base and the regular charging of depreciation expenses against these assets. The rising figure is consistent with the growing asset base and expected usage over time.

Property and Equipment, Net

Net property and equipment values show a robust upward trend from US$113,114 million in 2020 to US$252,665 million in 2024. This net increase demonstrates that asset additions and improvements substantially outpace depreciation and amortization, highlighting ongoing investments that strengthen the company's asset base.

In summary, the financial data reflects aggressive capital investment and expansion in the company's physical assets, with all major categories advancing steadily. The increase in accumulated depreciation aligns with the growth in assets but does not offset the significant rise in net property and equipment, which more than doubles over the period. These trends indicate a strategic focus on enhancing operational capacity and infrastructure.

Average Age Ratio

The average age ratio demonstrates fluctuations over the observed periods, initially decreasing from 34.82% in 2020 to 32.88% in 2021, suggesting a relatively younger asset base during that year. Subsequently, it increased to 34.19% in 2022 and further to 37.04% in 2023, indicating an aging asset pool. In 2024, a slight decline to 35.88% suggests some renewal or disposal activity, yet the ratio remains elevated compared to early periods.

Estimated Total Useful Life

The estimated total useful life of property, plant, and equipment remains fairly consistent, fluctuating slightly between 10 and 12 years. It was lowest at 10 years in 2021 and peaked at 12 years in 2024, indicating adjustments in asset longevity assumptions or changes in the asset mix towards longer-use assets by the end of the period.

Estimated Age, Time Elapsed Since Purchase

This metric reflects a relatively stable average asset age, predominantly around 4 years, except for a decrease to 3 years in 2021. The data implies consistent asset acquisition activity to maintain an average asset age around this level, with no significant aging spikes.

Estimated Remaining Life

The estimated remaining life of assets is steady at 7 years from 2020 through 2023, followed by a modest increase to 8 years in 2024. This extension corresponds with the increased total useful life estimate, suggesting either acquisitions of assets with longer service lives or revised depreciation policies extending the expected usability of existing assets.

Accumulated Depreciation and Amortization

The accumulated depreciation and amortization have shown a continuous upward trend over the analyzed periods. Starting from $60,434 million in 2020, the value increased each year, reaching $141,390 million by 2024. This steady rise suggests ongoing depreciation charges consistent with the expansion of property and equipment assets.

Gross Property and Equipment

The gross property and equipment balance also increased significantly over the same period. Beginning at $173,548 million in 2020, it rose to $394,055 million by 2024. This consistent increase indicates substantial investments in capital assets, reflecting growth and expansion activities.

Average Age Ratio

The average age ratio, which is indicative of the relative average age of the company's property and equipment, exhibited some fluctuations. It started at 34.82% in 2020, decreased slightly to 32.88% in 2021, increased to 37.04% in 2023, and then slightly declined to 35.88% in 2024. These variations suggest a dynamic asset base with additions and retirements affecting the overall average age, though the ratio remains within a relatively narrow range.

Overall Insights

The data reflects a pattern of substantial capital investment accompanied by accelerating depreciation charges consistent with asset growth. While the gross property and equipment almost doubled over the five-year span, the accumulated depreciation more than doubled, indicating that additions are balanced with aging assets. The relatively stable average age ratio points to a moderate aging of the asset base without abrupt changes, suggesting a consistent asset renewal and expansion strategy.

The analysis of the property, plant, and equipment data over the five-year period reveals a distinct upward trend in the company's asset base, as well as changes in the depreciation and amortization expenses relative to the growth of gross property and equipment.

Gross Property and Equipment

The gross value of property and equipment has shown consistent and substantial growth each year. Starting from US$173,548 million in 2020, it increased to US$238,800 million in 2021, then to US$283,730 million in 2022, followed by US$324,288 million in 2023, and reaching US$394,055 million in 2024. This progression indicates a strong and continuous investment in fixed assets, suggesting expansion, capacity increase, or upgrading of infrastructure over the period.

Depreciation and Amortization Expense

Depreciation and amortization expense has also risen year-over-year from US$16,239 million in 2020 to US$32,067 million in 2024. This increase corresponds with the growth in the property and equipment base, reflecting higher expense recognition as assets age or new assets are added. The growth rate in depreciation is somewhat aligned with the increase in gross property and equipment, although the latter has increased at a somewhat higher pace, especially between 2023 and 2024.

Estimated Total Useful Life

The estimated useful life of the property and equipment has remained relatively stable, fluctuating only slightly from 11 years in 2020 to 10 years in 2021, and then back to 11 years for 2022 and 2023, increasing to 12 years in 2024. This suggests consistent asset longevity assumptions over the period, with a slight lengthening of useful life in the most recent year, which could impact depreciation calculations and expense recognition going forward.

Overall, the data indicates a significant and steady expansion in capital assets, with depreciation expenses rising correspondingly. The relatively stable useful life estimates imply consistent asset management policies. The substantial investments in property and equipment point toward ongoing growth initiatives, while the depreciable life extension in the most recent year could moderate depreciation expense growth in subsequent periods.

Accumulated Depreciation and Amortization

The accumulated depreciation and amortization has shown a consistent upward trajectory over the five-year period. Starting from approximately $60.4 billion at the end of 2020, it increased each year, reaching about $141.4 billion by the end of 2024. This represents more than a doubling of the accumulated figure, indicating ongoing and substantial depreciation of property and equipment assets over time.

Depreciation and Amortization Expense on Property and Equipment

The annual depreciation and amortization expense also depicts a rising trend. It grew from approximately $16.2 billion in 2020 to around $32.1 billion in 2024. The expenses increased steadily year over year, with the most significant increments between 2020 to 2021 and 2022 to 2023. This trend suggests expanding asset bases or higher depreciation rates applied to the existing assets.

Time Elapsed Since Purchase

The time elapsed since purchase remained relatively stable, averaging around 3 to 4 years throughout the period analyzed. This consistency implies that the property and equipment assets are relatively young, indicating an ongoing investment in new assets replacing or supplementing older ones.

Summary of Trends

The data demonstrates a clear pattern of continuous investment in property and equipment, evidenced by increasing depreciation expenses and accumulated depreciation values. The regular increase in accumulated depreciation signifies sustained asset utilization, while the stable average asset age suggests active asset management and replacement strategies. Overall, the company appears to be maintaining and expanding its asset base consistently over the examined period.

Property and Equipment, Net

The net value of property and equipment shows a consistent upward trend over the reported periods. Starting at 113,114 million US dollars in 2020, it increased significantly to 252,665 million US dollars by 2024. This growth indicates substantial investments in physical assets over the five-year span, reflecting an expansion or modernization of infrastructure.

Depreciation and Amortization Expense on Property and Equipment

Depreciation and amortization expenses also increased steadily from 16,239 million US dollars in 2020 to 32,067 million US dollars in 2024. The rising expense corresponds with the growing asset base, as higher asset values generally lead to increased depreciation charges. This pattern suggests an ongoing utilization and aging of assets, consistent with the company's asset growth.

Estimated Remaining Life of Property and Equipment

The estimated remaining life of the property and equipment remained stable at 7 years from 2020 through 2023 but extended to 8 years in 2024. The increase in remaining life may indicate either the acquisition of new assets with longer useful lives or an update in the depreciation policy or asset revaluation.