Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Apple Inc. (NASDAQ:AAPL)

Analysis of Property, Plant and Equipment

Advanced level

Property, Plant and Equipment Disclosure

Apple Inc., balance sheet: property, plant and equipment

US$ in millions

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Land and buildings 17,952  17,085  16,216  13,587  10,185  6,956 
Machinery, equipment and internal-use software 75,291  69,797  65,982  54,210  44,543  37,038 
Leasehold improvements 10,283  9,075  8,205  7,279  6,517  5,263 
Gross property, plant and equipment 103,526  95,957  90,403  75,076  61,245  49,257 
Accumulated depreciation and amortization (66,760) (58,579) (49,099) (41,293) (34,235) (26,786)
Property, plant and equipment, net 36,766  37,378  41,304  33,783  27,010  22,471 

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

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. Apple Inc.’s gross property, plant and equipment increased from 2018 to 2019 and from 2019 to 2020.
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. Apple Inc.’s property, plant and equipment, net decreased from 2018 to 2019 and from 2019 to 2020.

Asset Age Ratios (Summary)

Apple Inc., asset age ratios

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Average age ratio 64.49% 61.05% 54.31% 55.00% 55.90% 54.38%
Estimated total useful life (years) 11 8 10 9 7 5
Estimated age, time elapsed since purchase (years) 7 5 5 5 4 3
Estimated remaining life (years) 4 3 4 4 3 2

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

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’s fixed asset base is old or new. Newer assets are likely to be more efficient. Apple Inc.’s average age ratio of depreciable property, plant and equipment deteriorated from 2018 to 2019 and from 2019 to 2020.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. Apple Inc.’s estimated total useful life of depreciable property, plant and equipment decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Apple Inc.’s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Estimated remaining life Apple Inc.’s estimated remaining life of depreciable property, plant and equipment decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.

Average Age

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization 66,760  58,579  49,099  41,293  34,235  26,786 
Gross property, plant and equipment 103,526  95,957  90,403  75,076  61,245  49,257 
Asset Age Ratio
Average age1 64.49% 61.05% 54.31% 55.00% 55.90% 54.38%

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

2020 Calculations

1 Average age = 100 × Accumulated depreciation and amortization ÷ Gross property, plant and equipment
= 100 × 66,760 ÷ 103,526 = 64.49%

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’s fixed asset base is old or new. Newer assets are likely to be more efficient. Apple Inc.’s average age ratio of depreciable property, plant and equipment deteriorated from 2018 to 2019 and from 2019 to 2020.

Estimated Total Useful Life

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Selected Financial Data (US$ in millions)
Gross property, plant and equipment 103,526  95,957  90,403  75,076  61,245  49,257 
Depreciation and amortization expense on property and equipment 9,700  11,300  9,300  8,200  8,300  9,200 
Asset Age Ratio (Years)
Estimated total useful life1 11 8 10 9 7 5

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

2020 Calculations

1 Estimated total useful life = Gross property, plant and equipment ÷ Depreciation and amortization expense on property and equipment
= 103,526 ÷ 9,700 = 11

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. Apple Inc.’s estimated total useful life of depreciable property, plant and equipment decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization 66,760  58,579  49,099  41,293  34,235  26,786 
Depreciation and amortization expense on property and equipment 9,700  11,300  9,300  8,200  8,300  9,200 
Asset Age Ratio (Years)
Time elapsed since purchase1 7 5 5 5 4 3

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

2020 Calculations

1 Time elapsed since purchase = Accumulated depreciation and amortization ÷ Depreciation and amortization expense on property and equipment
= 66,760 ÷ 9,700 = 7

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Apple Inc.’s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Estimated Remaining Life

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Selected Financial Data (US$ in millions)
Property, plant and equipment, net 36,766  37,378  41,304  33,783  27,010  22,471 
Depreciation and amortization expense on property and equipment 9,700  11,300  9,300  8,200  8,300  9,200 
Asset Age Ratio (Years)
Estimated remaining life1 4 3 4 4 3 2

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

2020 Calculations

1 Estimated remaining life = Property, plant and equipment, net ÷ Depreciation and amortization expense on property and equipment
= 36,766 ÷ 9,700 = 4

Asset age ratio Description The company
Estimated remaining life Apple Inc.’s estimated remaining life of depreciable property, plant and equipment decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.