Stock Analysis on Net

Intuitive Surgical Inc. (NASDAQ:ISRG)

Analysis of Property, Plant and Equipment

Microsoft Excel

Property, Plant and Equipment Disclosure

Intuitive Surgical Inc., balance sheet: property, plant and equipment

US$ in thousands

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Land 457,300 388,600 367,800 277,900 248,000
Building and building/leasehold improvements 1,002,100 866,500 812,500 773,800 408,300
Machinery and equipment 724,200 566,400 497,600 428,000 357,200
Operating lease assets, Intuitive System Leasing 1,149,700 806,400 616,100 419,900 293,800
Computer and office equipment 153,800 134,700 123,700 112,600 74,000
Capitalized software 257,800 240,900 217,600 205,400 182,200
Construction-in-process 1,354,700 608,600 209,700 117,400 272,500
Gross property, plant, and equipment 5,099,600 3,612,100 2,845,000 2,335,000 1,836,000
Accumulated depreciation (1,562,000) (1,237,900) (968,600) (757,700) (563,100)
Property, plant, and equipment, net 3,537,600 2,374,200 1,876,400 1,577,300 1,272,900

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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

Asset Age Ratios (Summary)

Intuitive Surgical Inc., asset age ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Average age ratio 33.65% 38.40% 39.10% 36.83% 35.46%
Estimated total useful life (years) 12 10 9 9 10
Estimated age, time elapsed since purchase (years) 4 4 3 3 4
Estimated remaining life (years) 8 6 5 6 7

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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. Intuitive Surgical 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. Intuitive Surgical 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. Intuitive Surgical 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 Intuitive Surgical Inc. estimated remaining life of depreciable property, plant and equipment increased from 2021 to 2022 and from 2022 to 2023.

Average Age

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Accumulated depreciation 1,562,000 1,237,900 968,600 757,700 563,100
Gross property, plant, and equipment 5,099,600 3,612,100 2,845,000 2,335,000 1,836,000
Land 457,300 388,600 367,800 277,900 248,000
Asset Age Ratio
Average age1 33.65% 38.40% 39.10% 36.83% 35.46%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Average age = 100 × Accumulated depreciation ÷ (Gross property, plant, and equipment – Land)
= 100 × 1,562,000 ÷ (5,099,600457,300) = 33.65%

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. Intuitive Surgical 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
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Gross property, plant, and equipment 5,099,600 3,612,100 2,845,000 2,335,000 1,836,000
Land 457,300 388,600 367,800 277,900 248,000
Depreciation expense 382,000 326,000 280,000 220,600 156,700
Asset Age Ratio (Years)
Estimated total useful life1 12 10 9 9 10

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Estimated total useful life = (Gross property, plant, and equipment – Land) ÷ Depreciation expense
= (5,099,600457,300) ÷ 382,000 = 12

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. Intuitive Surgical 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
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Accumulated depreciation 1,562,000 1,237,900 968,600 757,700 563,100
Depreciation expense 382,000 326,000 280,000 220,600 156,700
Asset Age Ratio (Years)
Time elapsed since purchase1 4 4 3 3 4

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 1,562,000 ÷ 382,000 = 4

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. Intuitive Surgical 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
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Property, plant, and equipment, net 3,537,600 2,374,200 1,876,400 1,577,300 1,272,900
Land 457,300 388,600 367,800 277,900 248,000
Depreciation expense 382,000 326,000 280,000 220,600 156,700
Asset Age Ratio (Years)
Estimated remaining life1 8 6 5 6 7

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Estimated remaining life = (Property, plant, and equipment, net – Land) ÷ Depreciation expense
= (3,537,600457,300) ÷ 382,000 = 8

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