Analysis of Property, Plant and Equipment
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- Cash Flow Statement
- Analysis of Liquidity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
- Analysis of Revenues
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Property, Plant and Equipment Disclosure
Intel Corp., balance sheet: property, plant and equipment
US$ in millions
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
- Land and buildings
- The value of land and buildings has shown a consistent upward trend over the observed period. It increased from $37,536 million in 2020 to $56,544 million in 2024, reflecting steady growth each year. The increase between 2023 and 2024 is notably significant, suggesting ongoing investments or revaluations in this asset category.
- Machinery and equipment
- Machinery and equipment also experienced continuous growth from $79,384 million in 2020 to $103,150 million in 2024. The year-over-year increases are steady, indicating ongoing capital expenditures to maintain or expand operational capacity.
- Construction in progress
- The construction in progress category shows the most pronounced increase, starting at $17,309 million in 2020 and rising sharply to $50,418 million by 2024. This suggests a substantial ramp-up in capital projects and development activities in recent years, potentially indicating future capacity expansion or modernization.
- Property, plant, and equipment, gross
- The gross value of property, plant, and equipment has grown significantly from $134,229 million in 2020 to $210,112 million in 2024. This upward movement reflects the combined increases across land and buildings, machinery and equipment, and construction in progress, highlighting a broad-based asset growth strategy.
- Accumulated depreciation
- Accumulated depreciation has increased in magnitude from -$77,645 million in 2020 to -$102,193 million in 2024, evidencing the aging of assets and ongoing depreciation charges. The steady rise is consistent with the expanding asset base but suggests that the depreciation expense is well-managed relative to asset growth.
- Property, plant, and equipment, net
- The net property, plant, and equipment value has seen robust growth, increasing from $56,584 million in 2020 to $107,919 million in 2024. This near doubling reflects significant investments exceeding depreciation effects, further supporting the view of an active capital expansion strategy and asset base strengthening over the period.
Asset Age Ratios (Summary)
Intel Corp., asset age ratios
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
- Average Age Ratio
- The average age ratio demonstrates a consistent decreasing trend over the five-year period, declining from 57.85% in 2020 to 48.64% in 2024. This decline suggests that the property, plant, and equipment are relatively younger or that newer assets have been added, effectively reducing the overall average age of the asset base.
- Estimated Total Useful Life
- The estimated total useful life of the assets shows an initial increase from 13 years in 2020 to 25 years in 2023, followed by a slight decrease to 21 years in 2024. This pattern indicates a revising or updating of asset longevity assumptions, potentially reflecting changes in asset composition or improvements in asset durability assessments over time.
- Estimated Age (Time Elapsed Since Purchase)
- The estimated age fluctuates within the range of 7 to 12 years over the period. After increasing from 7 years in 2020 to 9 years in 2021, it decreases slightly to 8 years in 2022, then rises to 12 years in 2023 before declining again to 10 years in 2024. These variations imply periodic asset retirements, acquisitions, or reclassifications affecting the average age of the equipment.
- Estimated Remaining Life
- The estimated remaining life generally increases from 5 years in 2020 to 12 years in 2023, before a small reduction to 11 years in 2024. This trend corresponds with the changes in total useful life and asset age, suggesting an extension in the expected service period of the assets, possibly due to upgrades, improved maintenance practices, or investment in newer equipment.
Average Age
| Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | Dec 26, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Accumulated depreciation | ||||||
| Property, plant, and equipment, gross | ||||||
| Asset Age Ratio | ||||||
| Average age1 | ||||||
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
2024 Calculations
1 Average age = 100 × Accumulated depreciation ÷ Property, plant, and equipment, gross
= 100 × ÷ =
- Property, Plant, and Equipment, Gross
- The gross value of property, plant, and equipment demonstrates a consistent upward trend over the observed five-year period. Beginning at approximately 134.2 billion US dollars in 2020, it increased steadily to reach around 210.1 billion US dollars by the end of 2024. This represents a substantial growth of over 56%, indicating significant capital investment and asset acquisition activities.
- Accumulated Depreciation
- Accumulated depreciation also shows a continual rise, increasing from about 77.6 billion US dollars in 2020 to roughly 102.2 billion US dollars by 2024. This increase reflects the aging and usage of the assets over time. The growth in accumulated depreciation is expected and in line with the expanding asset base, suggesting a systematic allocation of asset costs.
- Average Age Ratio
- The average age ratio, expressed as a percentage, declines steadily from 57.85% in 2020 to 48.64% in 2024. This decreasing trend implies that, relative to total asset life or possibly asset replacement cycles, the overall property, plant, and equipment portfolio is becoming younger. This could result from the acquisition of new assets or retirement of older ones, indicating proactive asset management and modernization efforts.
- Overall Insights
- The combination of increasing gross asset values and accumulated depreciation alongside a decreasing average age ratio suggests a dynamic asset base undergoing expansion and renewal. The company appears to be investing substantially in tangible assets while managing depreciation responsibly. The declining average age ratio further suggests effective asset refresh strategies, contributing to potentially improved operational efficiency and capacity.
Estimated Total Useful Life
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
2024 Calculations
1 Estimated total useful life = Property, plant, and equipment, gross ÷ Depreciation expense
= ÷ =
The analysis of the annual property, plant, and equipment data reveals several key trends and notable changes over the five-year period.
- Property, Plant, and Equipment, Gross
- There is a consistent upward trend in the gross value of property, plant, and equipment. Starting at $134,229 million in 2020, this figure steadily increased each year, reaching $210,112 million by 2024. This growth suggests ongoing investment and expansion in the company’s physical assets, reflecting potentially increased capacity, modernization, or acquisition of new facilities.
- Depreciation Expense
- The depreciation expense demonstrates a more variable pattern. Initially, there is a slight decrease from $10,482 million in 2020 to $9,953 million in 2021. It then rises modestly to $11,128 million in 2022, followed by a significant drop to $7,847 million in 2023. In 2024, depreciation expense increases again to $9,951 million. This variability could be linked to changes in asset composition, depreciation methods, or revisions in the estimated useful life of assets.
- Estimated Total Useful Life
- There is an observable increase in the estimated total useful life of the assets, starting from 13 years in 2020, gradually increasing to 15 and 16 years in subsequent years, peaking at 25 years in 2023 before slightly decreasing to 21 years in 2024. The increase in useful life correlates with the reduction in depreciation expense observed in 2023, as a longer useful life typically results in lower annual depreciation charges.
Overall, the data indicates substantial asset growth accompanied by adjustments in depreciation practices and asset life estimates. The fluctuation in depreciation expense is primarily influenced by changes in the estimated useful life, which impacts how depreciation is recognized annually. The company appears to be extending the assumed useful life of its assets, potentially reflecting newer, more durable equipment or a strategic decision to spread depreciation costs over a longer horizon.
Estimated Age, Time Elapsed since Purchase
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
2024 Calculations
1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= ÷ =
The data on property, plant, and equipment over the five-year period reveals several noteworthy trends and variations.
- Accumulated Depreciation
- The accumulated depreciation consistently increased each year from 77,645 million USD in 2020 to 102,193 million USD in 2024. This steady rise reflects ongoing depreciation of assets over time and suggests a continuous allocation of asset cost against revenue.
- Depreciation Expense
- The annual depreciation expense exhibits some fluctuations. It started at 10,482 million USD in 2020, dropped slightly to 9,953 million USD in 2021, then rose to 11,128 million USD in 2022. In 2023, there was a notable decrease to 7,847 million USD, followed by a recovery to 9,951 million USD in 2024. This volatility may indicate changes in asset acquisition, disposal activities, or adjustments in depreciation methods or estimates.
- Time Elapsed Since Purchase
- The average age of assets indicated by the time elapsed since purchase shows some variation, increasing from 7 years in 2020 to 9 years in 2021, then decreasing to 8 years in 2022, peaking at 12 years in 2023 before slightly declining to 10 years in 2024. These changes suggest a dynamic asset base, involving both acquisitions of newer assets and retention of older assets.
Overall, the consistent increase in accumulated depreciation aligns with the company's ongoing use and aging of fixed assets. However, the inconsistency in depreciation expense and the fluctuating average asset age imply periods of changes in asset management strategy, either through significant acquisitions, disposals, or changes in estimated useful lives. The sharp dip in depreciation expense in 2023 paired with the rise in asset age to 12 years may indicate an unusual event or accounting treatment affecting that year’s depreciation calculation.
Estimated Remaining Life
Based on: 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25), 10-K (reporting date: 2020-12-26).
2024 Calculations
1 Estimated remaining life = Property, plant, and equipment, net ÷ Depreciation expense
= ÷ =
The data reveals several noteworthy trends in the property, plant, and equipment (PP&E) and related metrics over the five-year period from December 2020 to December 2024.
- Net Property, Plant, and Equipment
- The net PP&E shows a consistent upward trajectory throughout the period. Starting at $56,584 million in December 2020, the figure increased steadily each year, reaching $107,919 million by December 2024. This represents an overall growth of approximately 90.7% over the five years, indicating substantial investments in physical assets.
- Depreciation Expense
- Depreciation expense exhibits some variability. It began at $10,482 million in 2020, then slightly declined to $9,953 million in 2021. In 2022, the expense rose to $11,128 million, followed by a notable decrease to $7,847 million in 2023. The figure then rebounded to $9,951 million in 2024. This fluctuation suggests changes in asset composition or depreciation methods, with the significant drop in 2023 possibly reflecting a shift in asset life or accelerated depreciation policies in previous years.
- Estimated Remaining Life
- The estimated remaining life of the PP&E increased from 5 years in 2020 to 11 years in 2024, doubling over the period. The increase is gradual, rising to 6 years in 2021, 7 years in 2022, reaching a peak of 12 years in 2023 before slightly decreasing to 11 years in 2024. This trend indicates that newer assets or asset improvements have longer useful lives, which may contribute to lower annual depreciation expenses in certain years.
Overall, the rising net PP&E alongside the extension of estimated asset life suggests ongoing capital investment with a focus on longer-lived assets. Meanwhile, the inconsistent depreciation expense might reflect timing differences in asset acquisition and the adoption of different depreciation strategies or asset turnover rates during the timeframe.