Analysis of Property, Plant and Equipment
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
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Property, Plant and Equipment Disclosure
Costco Wholesale Corp., balance sheet: property, plant and equipment
US$ in millions
Based on: 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01).
The data shows a consistent upward trend across all categories of property, plant, and equipment over the analyzed periods.
- Land
- The value of land holdings has steadily increased each year, starting at $6,417 million in 2019 and reaching $9,447 million in 2024. This indicates ongoing investment or acquisition of land assets over the six-year period, with an overall growth of approximately 47%.
- Buildings and improvements
- This category also exhibits continuous growth from $17,136 million in 2019 to $23,727 million in 2024. The increase reflects a sustained expansion or enhancement of building infrastructure, with the total rising by about 39% during the period.
- Equipment and fixtures
- The equipment and fixtures value rose from $7,801 million in 2019 to $12,387 million in 2024, marking a significant increase of nearly 59%. The growth trend suggests ongoing investment in operational assets, likely aimed at supporting expanded business activities or improving efficiency.
- Construction in progress
- Values for construction in progress fluctuate slightly but remain relatively stable, peaking at $1,582 million in 2022 before a decline to around $1,389 million in 2024. This indicates some variability in the level of active capital projects but no strong upward or downward trend.
- Property and equipment, gross
- The gross property and equipment amount shows a solid increase across the period, moving from $32,626 million in 2019 to $46,950 million in 2024. This 44% growth underscores an overall strategy of asset accumulation and expansion of physical capital.
- Accumulated depreciation and amortization
- Accumulated depreciation has increased in absolute terms (reported as a negative figure) from -$11,736 million in 2019 to -$17,918 million in 2024. This rise is consistent with the expanding asset base, reflecting increasing use and aging of fixed assets over time.
- Property and equipment, net
- The net value, combining gross assets and accumulated depreciation, shows an upward trend from $20,890 million in 2019 to $29,032 million in 2024. This 39% increase highlights the continued growth in productive fixed assets available after accounting for wear and depreciation.
Asset Age Ratios (Summary)
Costco Wholesale Corp., asset age ratios
Based on: 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01).
- Average Age Ratio
- The average age ratio of property, plant, and equipment exhibited a gradual upward trend from the fiscal year ending September 1, 2019, through September 3, 2023. It increased from 44.78% in 2019 to a peak of 47.97% in 2023. This rise indicates a steady aging of the asset base over this period.
- In the most recent year ending September 1, 2024, the ratio slightly declined to 47.78%, suggesting a modest renewal or replacement of assets during that fiscal year. The relatively stable plateau from 2022 through 2024 in the 47-48% range implies the company has maintained a consistent level of asset aging after several years of gradual increase.
- Overall, the data points to a maturing asset base with some recent efforts that may be geared towards balancing the aging equipment through capital investments or disposals, reflecting a strategic approach to asset management.
Average Age
Based on: 10-K (reporting date: 2024-09-01), 10-K (reporting date: 2023-09-03), 10-K (reporting date: 2022-08-28), 10-K (reporting date: 2021-08-29), 10-K (reporting date: 2020-08-30), 10-K (reporting date: 2019-09-01).
2024 Calculations
1 Average age = 100 × Accumulated depreciation and amortization ÷ (Property and equipment, gross – Land)
= 100 × ÷ ( – ) =
A review of the property, plant, and equipment data over the six-year period reveals several key trends and patterns that indicate consistent growth and steady asset utilization.
- Property and Equipment, Gross
- The gross value of property and equipment has shown a continuous upward trajectory, increasing from $32,626 million in 2019 to $46,950 million in 2024. This reflects a significant investment in fixed assets, suggesting expansion and capacity enhancement over the analyzed period.
- Accumulated Depreciation and Amortization
- Accumulated depreciation and amortization also rose steadily from $11,736 million in 2019 to $17,918 million in 2024. This increase corresponds with the growth in gross property and equipment, indicating ongoing usage and aging of assets as expected. The depreciation rate appears proportional to asset additions, which implies consistent asset management practices.
- Land
- The value of land increased from $6,417 million in 2019 to $9,447 million in 2024. This upward trend denotes acquisitions or revaluations of land holdings. Since land is a non-depreciable asset, the increase contributes to the gross property and equipment growth without affecting depreciation.
- Average Age Ratio
- The average age ratio, representing the relative aging of assets, rose from 44.78% in 2019 to a peak of 47.97% in 2023, before slightly declining to 47.78% in 2024. This suggests that while assets are aging, recent investments have helped moderate the overall asset age, maintaining a balance between newer and older equipment.
In summary, the data portrays a company actively investing in property and equipment, with steadily increasing asset values and a controlled rate of asset aging. The growth in gross property and equipment is matched by a proportionate rise in accumulated depreciation, indicating systematic asset consumption and replacement cycles. The increase in land value further supports expansion activities, while the average age ratio signifies an overall healthy asset profile with ongoing renewal.