Analysis of Property, Plant and Equipment
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Property, Plant and Equipment Disclosure
Meta Platforms Inc., balance sheet: property, plant and equipment
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Property, plant, and equipment exhibited substantial growth over the five-year period. Significant increases were observed across most asset categories, contributing to a considerable expansion of the gross and net book values. The most pronounced growth occurred in servers and network assets, followed by construction in progress and buildings.
- Land
- Land holdings increased steadily from US$1,688 million in 2021 to US$3,687 million in 2025. This represents a cumulative increase of approximately 118%, indicating a consistent investment in land assets.
- Servers and Network Assets
- Servers and network assets demonstrated the most significant growth, rising from US$25,584 million in 2021 to US$98,040 million in 2025. This represents a substantial increase of 283%, suggesting a major focus on expanding computing infrastructure. Growth was particularly strong between 2022 and 2024.
- Buildings
- Buildings increased from US$22,531 million in 2021 to US$55,568 million in 2025, a cumulative increase of 146%. This growth indicates ongoing investment in physical facilities.
- Leasehold Improvements
- Leasehold improvements showed a moderate, consistent increase, growing from US$5,795 million in 2021 to US$8,346 million in 2025. This represents a cumulative increase of approximately 44%.
- Equipment and Other
- Equipment and other assets experienced initial growth, increasing from US$4,764 million in 2021 to US$7,416 million in 2023, but then decreased slightly to US$7,150 million in 2024 before recovering to US$9,377 million in 2025. This suggests potential asset disposals or reclassifications in 2024.
- Finance Lease Right-of-Use Assets
- Finance lease right-of-use assets increased from US$2,840 million in 2021 to US$8,187 million in 2025, representing a cumulative increase of approximately 188%. This indicates a growing reliance on leased assets.
- Construction in Progress
- Construction in progress fluctuated, increasing significantly from US$14,687 million in 2021 to US$25,052 million in 2022, then decreasing to US$24,269 million in 2023, before increasing again to US$50,521 million in 2025. The substantial increase in 2025 suggests significant new construction projects nearing completion or recently initiated.
- Gross Property and Equipment
- Gross property and equipment increased substantially, from US$77,889 million in 2021 to US$233,726 million in 2025, representing a cumulative increase of approximately 200%. This reflects the combined growth across all asset categories.
- Accumulated Depreciation
- Accumulated depreciation increased consistently over the period, from -US$20,080 million in 2021 to -US$57,326 million in 2025. This is expected given the growth in the asset base and the passage of time.
- Net Property and Equipment
- Net property and equipment increased significantly, from US$57,809 million in 2021 to US$176,400 million in 2025, representing a cumulative increase of approximately 205%. This growth is driven by the substantial increases in gross assets outpacing the increase in accumulated depreciation.
Overall, the trends indicate a significant and sustained investment in property, plant, and equipment, particularly in servers and network assets, buildings, and construction in progress. This suggests a strategic focus on expanding infrastructure and capacity.
Asset Age Ratios (Summary)
Meta Platforms Inc., asset age ratios
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The analysis of property, plant, and equipment reveals several trends regarding asset age and useful life estimates. The average age ratio fluctuates over the observed period, while estimates of total useful life and remaining life also demonstrate changes. These shifts warrant further investigation to understand their implications for future capital expenditure and depreciation expense.
- Average Age Ratio
- The average age ratio decreased from 26.35% in 2021 to 24.34% in 2022, indicating a relative shift towards newer assets within the fixed asset base. It then increased to 25.96% in 2023 and further to 26.72% in 2024, suggesting a potential slowing of asset replacement or an increase in the proportion of older assets. A subsequent decrease to 24.92% in 2025 indicates a renewed trend towards a younger asset base. These fluctuations suggest active asset management, but the reasons behind the changes should be examined.
- Estimated Total Useful Life
- The estimated total useful life of the assets initially increased from 10 years in 2021 to 12 years in both 2022 and 2023. This suggests a revision in the company’s assessment of asset longevity, potentially due to improvements in maintenance practices or the acquisition of more durable assets. A decrease to 11 years in 2024 followed by an increase to 13 years in 2025 indicates continued refinement of these estimates, possibly reflecting changes in the asset mix or technological advancements impacting asset obsolescence.
- Estimated Age and Remaining Life
- The estimated age, representing the time elapsed since purchase, remained constant at 3 years throughout the period. This suggests a consistent pattern of asset acquisition over the past five years. The estimated remaining life mirrored the changes in total useful life, increasing from 7 years in 2021 to 9 years in 2023, decreasing to 8 years in 2024, and then increasing to 10 years in 2025. This correlation with the total useful life estimates reinforces the notion of ongoing adjustments to asset depreciation schedules.
Overall, the observed trends suggest a dynamic approach to asset management, with periodic adjustments to useful life estimates and fluctuations in the average age ratio. Continued monitoring of these ratios is recommended to assess the long-term implications for capital expenditure planning and financial reporting.
Average Age
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Accumulated depreciation | ||||||
| Property and equipment, gross | ||||||
| Land | ||||||
| Asset Age Ratio | ||||||
| Average age1 | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
2025 Calculations
1 Average age = 100 × Accumulated depreciation ÷ (Property and equipment, gross – Land)
= 100 × ÷ ( – ) =
An examination of the presented financial information reveals a consistent increase in both property and equipment, gross, and accumulated depreciation over the five-year period from 2021 to 2025. This suggests ongoing investment in fixed assets. The value of land also demonstrates a steady upward trend throughout the period.
- Property and Equipment, Gross
- Property and equipment, gross, increased significantly from US$77,889 million in 2021 to US$233,726 million in 2025. The rate of increase appears to accelerate over time, with larger absolute increases observed in the later years of the period. This indicates a substantial expansion of the company’s fixed asset base.
- Accumulated Depreciation
- Accumulated depreciation has risen consistently, moving from US$20,080 million in 2021 to US$57,326 million in 2025. The growth in accumulated depreciation parallels the increase in property and equipment, gross, which is expected as assets age and are utilized. The increasing value suggests a continued consumption of the economic benefits embedded within these assets.
- Land
- The value of land has increased steadily from US$1,688 million in 2021 to US$3,687 million in 2025. While the absolute increase is smaller than that of property and equipment, the consistent growth suggests a deliberate strategy of land acquisition.
- Average Age Ratio
- The average age ratio fluctuates around the 25-27% range throughout the period. It initially decreased from 26.35% in 2021 to 24.34% in 2022, then increased to 26.72% in 2024 before decreasing slightly to 24.92% in 2025. This relative stability suggests that the company is consistently renewing or replacing its assets at a rate that maintains a fairly constant average age of its fixed asset base. The slight variations may be attributable to the timing and scale of new asset acquisitions relative to depreciation expense.
Overall, the financial information indicates a period of significant investment in property, plant, and equipment, coupled with a consistent depreciation pattern and a relatively stable average age of these assets.
Estimated Total Useful Life
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
2025 Calculations
1 Estimated total useful life = (Property and equipment, gross – Land) ÷ Depreciation expense on property and equipment
= ( – ) ÷ =
Gross property and equipment values demonstrate a consistent and accelerating upward trend over the five-year period. Simultaneously, depreciation expense has also increased year-over-year, though at a varying rate. The reported estimated total useful life of these assets exhibits fluctuations, suggesting potential shifts in asset composition or depreciation strategies.
- Gross Property and Equipment
- The value of gross property and equipment increased from US$77,889 million in 2021 to US$233,726 million in 2025. The rate of increase accelerated over time, with the largest absolute increase occurring between 2024 and 2025 (US$69,063 million). This indicates significant investment in property, plant, and equipment during this period.
- Land
- Land holdings also increased steadily, rising from US$1,688 million in 2021 to US$3,687 million in 2025. While the absolute increase in land value is smaller than that of overall property and equipment, the consistent growth suggests ongoing land acquisition.
- Depreciation Expense
- Depreciation expense increased from US$7,560 million in 2021 to US$18,000 million in 2025. The increase was most substantial between 2022 and 2023 (US$2,520 million) and again between 2023 and 2024 (US$4,270 million). This rise correlates with the increasing value of gross property and equipment, as expected. However, the accelerating depreciation expense suggests a larger proportion of recently acquired assets entering the depreciation period, or a change in depreciation methods.
- Estimated Total Useful Life
- The estimated total useful life of property and equipment has varied. It began at 10 years in 2021, increased to 12 years in both 2022 and 2023, decreased to 11 years in 2024, and then increased to 13 years in 2025. This fluctuation could be due to changes in the types of assets being acquired, revisions in depreciation policies, or adjustments based on actual asset performance. The increase to 13 years in 2025 may indicate the acquisition of assets with longer expected lifespans, or a company-wide adjustment to extend useful life estimates.
The interplay between increasing asset values, rising depreciation expense, and fluctuating estimated useful lives warrants further investigation. The changes in estimated useful life, in particular, should be examined in conjunction with the company’s capital expenditure policies and asset management practices.
Estimated Age, Time Elapsed since Purchase
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
2025 Calculations
1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense on property and equipment
= ÷ =
Analysis reveals a consistent and accelerating pattern in accumulated depreciation and depreciation expense over the observed period. The reported time elapsed since purchase remains constant, suggesting the observed changes are not due to newly acquired assets impacting the average age of the asset base.
- Accumulated Depreciation
- Accumulated depreciation demonstrates a substantial and increasing trend, rising from US$20,080 million in 2021 to US$57,326 million in 2025. The increase between 2021 and 2022 was US$4,895 million, while the increase between 2024 and 2025 was US$14,009 million. This accelerating growth indicates a potentially faster rate of asset consumption or a change in depreciation methods, though the constant 'time elapsed since purchase' suggests the former is more likely.
- Depreciation Expense
- Depreciation expense on property and equipment also exhibits a clear upward trend, increasing from US$7,560 million in 2021 to US$18,000 million in 2025. Similar to accumulated depreciation, the year-over-year increases are growing. The increase from 2021 to 2022 was US$940 million, while the increase from 2024 to 2025 was US$2,710 million. This parallels the trend in accumulated depreciation and reinforces the observation of increasing asset consumption.
- Time Elapsed Since Purchase
- The reported time elapsed since purchase consistently remains at 3 years throughout the period. This indicates that the increases in both accumulated depreciation and depreciation expense are not attributable to a shift in the age distribution of the asset base towards older, more depreciated assets. The increases are likely driven by the existing asset base being depreciated at an increasing rate.
The consistent time elapsed since purchase, coupled with the accelerating increases in both accumulated depreciation and depreciation expense, warrants further investigation into the underlying factors driving these trends. Potential areas for review include changes in estimated useful lives, salvage values, or the composition of the asset base.
Estimated Remaining Life
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
2025 Calculations
1 Estimated remaining life = (Property and equipment, net – Land) ÷ Depreciation expense on property and equipment
= ( – ) ÷ =
Property and equipment, net, exhibited a substantial and consistent increase over the five-year period, rising from US$57,809 million in 2021 to US$176,400 million in 2025. Land holdings also increased steadily, though at a smaller absolute scale, progressing from US$1,688 million to US$3,687 million during the same timeframe. Concurrently, depreciation expense on property and equipment demonstrated a significant upward trend, increasing from US$7,560 million in 2021 to US$18,000 million in 2025. The estimated remaining life of these assets fluctuated over the period, showing an initial increase before stabilizing and then increasing again.
- Property and Equipment Growth
- The growth in net property and equipment suggests significant investment in fixed assets. The rate of increase accelerated between 2022 and 2024, indicating a period of particularly aggressive expansion. The increase in land holdings, while smaller in magnitude, is consistent with this overall expansion strategy.
- Depreciation Expense Trend
- The increasing depreciation expense is directly correlated with the growth in property and equipment. The accelerating rate of depreciation expense, particularly from 2023 onwards, suggests that a larger proportion of recently acquired assets are now contributing to the depreciation charge. This is expected as new assets are put into use.
- Estimated Remaining Life Analysis
- The estimated remaining life initially increased from 7 years in 2021 to 9 years in 2022 and 2023. This could be due to revisions in asset useful life assessments or a shift towards acquiring assets with longer expected lifespans. A decrease to 8 years in 2024 may indicate the impact of assets reaching the latter stages of their useful life or changes in depreciation methods. The subsequent increase to 10 years in 2025 suggests a renewed expectation of longer asset lives, potentially reflecting recent acquisitions or technological advancements extending asset usability.
The interplay between increasing property and equipment, rising depreciation, and fluctuating estimated remaining life warrants continued monitoring. The changes in estimated remaining life, in particular, should be investigated further to understand the underlying drivers and potential impact on future depreciation expense and asset valuations.