Stock Analysis on Net
Stock Analysis on Net

Apple Inc. (NASDAQ:AAPL)

Analysis of Property, Plant and Equipment

Microsoft Excel

Property, Plant and Equipment Disclosure

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

US$ in millions

Microsoft Excel
Sep 30, 2023 Sep 24, 2022 Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018
Land and buildings 23,446 22,126 20,041 17,952 17,085 16,216
Machinery, equipment and internal-use software 78,314 81,060 78,659 75,291 69,797 65,982
Leasehold improvements 12,839 11,271 11,023 10,283 9,075 8,205
Gross property, plant and equipment 114,599 114,457 109,723 103,526 95,957 90,403
Accumulated depreciation (70,884) (72,340) (70,283) (66,760) (58,579) (49,099)
Property, plant and equipment, net 43,715 42,117 39,440 36,766 37,378 41,304

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

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. 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. Apple Inc. property, plant and equipment, net increased from 2021 to 2022 and from 2022 to 2023.

Asset Age Ratios (Summary)

Apple Inc., asset age ratios

Microsoft Excel
Sep 30, 2023 Sep 24, 2022 Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018
Average age ratio 61.85% 63.20% 64.05% 64.49% 61.05% 54.31%
Estimated total useful life (years) 13 13 12 11 8 10
Estimated age, time elapsed since purchase (years) 8 8 7 7 5 5
Estimated remaining life (years) 5 5 4 4 3 4

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

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. Apple Inc. average age ratio of depreciable property, plant and equipment improved 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. Apple Inc. 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. Apple Inc. estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2021 to 2022 and from 2022 to 2023.
Estimated remaining life Apple Inc. estimated remaining life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.

Average Age

Microsoft Excel
Sep 30, 2023 Sep 24, 2022 Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018
Selected Financial Data (US$ in millions)
Accumulated depreciation 70,884 72,340 70,283 66,760 58,579 49,099
Gross property, plant and equipment 114,599 114,457 109,723 103,526 95,957 90,403
Asset Age Ratio
Average age1 61.85% 63.20% 64.05% 64.49% 61.05% 54.31%

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

2023 Calculations

1 Average age = 100 × Accumulated depreciation ÷ Gross property, plant and equipment
= 100 × 70,884 ÷ 114,599 = 61.85%

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. Apple Inc. average age ratio of depreciable property, plant and equipment improved from 2021 to 2022 and from 2022 to 2023.

Estimated Total Useful Life

Microsoft Excel
Sep 30, 2023 Sep 24, 2022 Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018
Selected Financial Data (US$ in millions)
Gross property, plant and equipment 114,599 114,457 109,723 103,526 95,957 90,403
Depreciation expense on property, plant and equipment 8,500 8,700 9,500 9,700 11,300 9,300
Asset Age Ratio (Years)
Estimated total useful life1 13 13 12 11 8 10

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

2023 Calculations

1 Estimated total useful life = Gross property, plant and equipment ÷ Depreciation expense on property, plant and equipment
= 114,599 ÷ 8,500 = 13

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. Apple Inc. 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
Sep 30, 2023 Sep 24, 2022 Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018
Selected Financial Data (US$ in millions)
Accumulated depreciation 70,884 72,340 70,283 66,760 58,579 49,099
Depreciation expense on property, plant and equipment 8,500 8,700 9,500 9,700 11,300 9,300
Asset Age Ratio (Years)
Time elapsed since purchase1 8 8 7 7 5 5

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

2023 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense on property, plant and equipment
= 70,884 ÷ 8,500 = 8

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. Apple Inc. 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
Sep 30, 2023 Sep 24, 2022 Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018
Selected Financial Data (US$ in millions)
Property, plant and equipment, net 43,715 42,117 39,440 36,766 37,378 41,304
Depreciation expense on property, plant and equipment 8,500 8,700 9,500 9,700 11,300 9,300
Asset Age Ratio (Years)
Estimated remaining life1 5 5 4 4 3 4

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

2023 Calculations

1 Estimated remaining life = Property, plant and equipment, net ÷ Depreciation expense on property, plant and equipment
= 43,715 ÷ 8,500 = 5

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