Intuitive Surgical Inc. (NASDAQ:ISRG)

Land

The value of land has shown a consistent upward trend over the five-year period, increasing from $277.9 million in 2020 to $476.4 million in 2024. This represents a substantial growth, indicating ongoing acquisitions or revaluations of land assets.

Building and Building/Leasehold Improvements

This category has steadily increased each year, rising from $773.8 million in 2020 to $1.4863 billion in 2024. The most notable increase occurred between 2023 and 2024, suggesting significant investments or expansions in physical facilities during that time.

Machinery and Equipment

The machinery and equipment assets have grown consistently from $428 million in 2020 to $886.3 million in 2024. The accelerating growth, particularly after 2021, points to increased capital expenditure on production or operational equipment.

Operating Lease Assets, Intuitive System Leasing

The value of operating lease assets has experienced strong growth, starting at $419.9 million in 2020 and nearly quadrupling to approximately $1.5791 billion by the end of 2024. This indicates expanding leasing arrangements, possibly to support operational scaling.

Computer and Office Equipment

This asset category shows a steady but moderate increase from $112.6 million in 2020 to $184.5 million in 2024, reflecting gradual upgrades or additions aligned with business needs.

Capitalized Software

Capitalized software has increased incrementally from $205.4 million in 2020 to $283.7 million in 2024, suggesting continuous investment in internal software development or acquisition with capitalizable costs.

Construction-in-Process

There is a marked increase in construction-in-process assets, growing from $117.4 million in 2020 to $1.6316 billion in 2024. This substantial rise, notably between 2021 and 2024, reflects significant ongoing construction projects or major asset additions not yet completed.

Gross Property, Plant, and Equipment

Overall gross property, plant, and equipment exhibited robust growth, escalating from $2.335 billion in 2020 to $6.5279 billion in 2024. The large increases mirror investments across all asset categories, particularly construction-in-process, lease assets, and buildings.

Accumulated Depreciation

Accumulated depreciation has increased steadily from negative $757.7 million in 2020 to negative $1.8813 billion in 2024, indicating systematic depreciation of fixed assets over time. The growth rate of depreciation appears proportionate with increasing gross asset values.

Property, Plant, and Equipment, Net

Net property, plant, and equipment have more than doubled, rising from $1.5773 billion in 2020 to $4.6466 billion in 2024. This significant increase reflects not only gross asset additions but also capital investment outpacing depreciation, indicative of company growth and asset base expansion.

Average Age Ratio

The average age ratio shows a fluctuating but overall declining trend from 36.83% in 2020 to 31.09% in 2024. It peaked in 2021 at 39.1% before gradually decreasing in subsequent years. This decline may indicate newer assets entering the property, plant, and equipment portfolio or effective asset management extending the useful life.

Estimated Total Useful Life (in years)

The estimated total useful life increased steadily over the period, starting at 9 years in 2020 and rising to 14 years by 2024. This consistent upward trend suggests either enhancements in asset longevity or revisions in the company's estimation policies to reflect longer asset utilization durations.

Estimated Age, Time Elapsed Since Purchase (in years)

The estimated asset age remained constant at 3 years from 2020 through 2021, then increased to 4 years from 2022 onward and maintained that level through 2024. The stabilization at 4 years suggests a replacement or acquisition cycle that maintains assets within a certain age range rather than rapid turnover.

Estimated Remaining Life (in years)

The estimated remaining life experienced some variation, falling from 6 years in 2020 to 5 years in 2021, then increasing to 6 years in 2022, reaching 8 years in 2023, and rising to 9 years in 2024. This upward movement in later years aligns with the increasing total useful life and indicates an improved expected duration of asset usability, possibly due to upgrades or new asset purchases extending life expectancy.

Accumulated Depreciation

The accumulated depreciation has shown a consistent upward trend over the five-year period. Starting at 757.7 million USD in 2020, it increased to 1.88 billion USD by 2024. This steady rise indicates a continuous aging and usage of the company's property, plant, and equipment (PP&E), reflecting ongoing depreciation expenses being recorded each year.

Gross Property, Plant, and Equipment

Gross PP&E values have demonstrated significant growth, increasing from 2.335 billion USD in 2020 to 6.5279 billion USD in 2024. This substantial increase suggests considerable capital investments and asset acquisitions over these years, likely reflecting expansion or modernization efforts within the company's operations.

Land

The value attributed to land has increased moderately but steadily, from 277.9 million USD in 2020 to 476.4 million USD in 2024. This growth is less pronounced than the overall gross PP&E increase, implying that most asset additions and investments may be in buildings, machinery, or other depreciable assets rather than in land.

Average Age Ratio

The average age ratio, which approximates the relative age of the asset base, started at 36.83% in 2020 and peaked slightly at 39.1% in 2021, before steadily decreasing to 31.09% in 2024. This downward trend after 2021 suggests the asset base has been renewed or expanded with newer assets, thus lowering the average age despite ongoing depreciation.

Overall Analysis

The data presents a picture of a company investing heavily in property, plant, and equipment over the observed period. The increase in gross PP&E outpaces the growth in accumulated depreciation, while the decline in average age ratio post-2021 indicates recent asset refreshment or expansion. The moderate rise in land value suggests that investment is more focused on depreciable assets rather than land. The continuous increase in accumulated depreciation aligns with the growing asset base and usage.

The financial data of property, plant, and equipment reflects significant growth and changes over the five-year period ending December 31, 2024. The gross property, plant, and equipment value demonstrates a consistent upward trend, increasing from $2,335,000 thousand in 2020 to $6,527,900 thousand in 2024. This indicates a substantial investment in physical assets, with the most pronounced increases occurring between 2022 and 2023, and again from 2023 to 2024.

Land value exhibits a more moderate but steady growth pattern across the same period, rising from $277,900 thousand in 2020 to $476,400 thousand in 2024. This suggests a continuous acquisition or appreciation of land assets, though at a slower pace compared to the overall property, plant, and equipment growth.

Depreciation expense has also increased steadily each year, from $220,600 thousand in 2020 up to $439,000 thousand in 2024. The increase in depreciation expense aligns with the rising gross asset base and reflects the growing wear and amortization of capital assets. The rate of increase in depreciation expense appears to closely follow the increase in gross property, plant, and equipment, indicating consistent capital asset usage and depreciation policies.

The estimated total useful life of the assets shows an upward trend, extending from 9 years in 2020 and 2021 to 14 years by 2024. This elongation of useful life might reflect changes in asset composition, improvements in asset durability, or revisions in company accounting policies related to asset depreciation.

Gross property, plant, and equipment

Steady and significant increase, indicating ongoing investment and expansion of physical assets.

Land

Moderate, consistent growth, suggesting acquisition or value appreciation of land holdings.

Depreciation expense

Steady rise concurrent with asset base expansion, showing increasing allocation of amortization costs.

Estimated total useful life

Incremental increase, implying asset longevity improvements or accounting reassessments.

The analysis of the property, plant, and equipment financial data over the five-year period reveals several notable trends and insights.

Accumulated Depreciation

The accumulated depreciation shows a consistent and significant increase each year, rising from approximately 757.7 million USD in 2020 to 1.88 billion USD in 2024. This upward trend reflects ongoing depreciation of assets over time, indicating both continuous usage of existing assets and acquisitions contributing to the depreciable base.

Depreciation Expense

The annual depreciation expense has also increased steadily, starting at 220.6 million USD in 2020 and reaching 439 million USD in 2024. This suggests that new assets have been added to the company’s property, plant, and equipment, or there has been a revaluation or change in depreciation methods or schedules to record higher expense amounts.

Time Elapsed Since Purchase

The time elapsed since purchase remains relatively stable at around three to four years across the observed periods. This consistency indicates that the company’s asset base is relatively young or that assets are replaced or upgraded with a similar frequency each year, which aligns with the rising depreciation expenses.

Overall, the data imply ongoing investment in fixed assets with a moderate asset life cycle, as evidenced by increasing accumulated depreciation and depreciation expenses, while the average asset age remains steady. This pattern is typical for companies maintaining or expanding operational capacity through continuous asset renewal.

Property, plant, and equipment, net

The net value of property, plant, and equipment shows a consistent and significant upward trend over the five-year period. Starting at approximately $1.58 billion at the end of 2020, it increased to about $4.65 billion by the end of 2024. This represents nearly a threefold increase within this timeframe, indicating substantial capital investment and asset growth.

Land

Land holdings also experienced growth, although at a more moderate pace compared to the overall property, plant, and equipment value. Beginning at around $278 million in 2020, land value increased to approximately $476 million in 2024. This gradual increase suggests ongoing acquisitions or revaluations of land assets, contributing to the broader expansion of fixed assets.

Depreciation expense

Depreciation expense has steadily increased from $220.6 million in 2020 to $439 million in 2024. This rising depreciation aligns with the growth in asset base, reflecting the higher cost of assets being amortized over time. The increase suggests a growing impact of asset aging and amortization expenses on the company's income statement.

Estimated remaining life

The estimated remaining life of property, plant, and equipment shows some fluctuations but generally indicates an extension from 6 years in 2020 to 9 years in 2024. This lengthening estimated life could result from asset mix changes, acquisition of newer assets with longer expected useful lives, or re-evaluation of asset longevity. It also implies potential reductions in depreciation intensity per asset value in future periods.