Paying users zone. Data is covered by 
.
Get 1 month access to NVIDIA Corp. for $17.99, or
get full access to entire website for at least 3 months from $49.99.
We accept:
NVIDIA Corp. (NVDA)
Analysis of Property, Plant and Equipment
Difficulty: Advanced
Property, Plant and Equipment Accounting Policy
Property and equipment are stated at cost. Depreciation of property and equipment is computed using the straight-line method based on the estimated useful lives of the assets, generally three to five years. Once an asset is identified for retirement or disposition, the related cost and accumulated depreciation or amortization are removed, and a gain or loss is recorded. The estimated useful lives of NVIDIA’s buildings are up to thirty years. Depreciation expense includes the amortization of assets recorded under capital leases. Leasehold improvements and assets recorded under capital leases are amortized over the shorter of the expected lease term or the estimated useful life of the asset.
Source: 10-K (filing date: 2019-02-21).
Property, Plant and Equipment Disclosure
NVIDIA Corp., balance sheet: property, plant and equipment
US$ in millions
| Jan 27, 2019 | Jan 28, 2018 | Jan 29, 2017 | Jan 31, 2016 | Jan 25, 2015 | Jan 26, 2014 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Land | |
|
|
|
|
|
|||||||
| Building | |
|
|
|
|
|
|||||||
| Test equipment | |
|
|
|
|
|
|||||||
| Computer equipment | |
|
|
|
|
|
|||||||
| Leasehold improvements | |
|
|
|
|
|
|||||||
| Software and licenses | |
|
|
|
|
|
|||||||
| Office furniture and equipment | |
|
|
|
|
|
|||||||
| Capital leases | |
|
|
|
|
|
|||||||
| Construction in process | |
|
|
|
|
|
|||||||
| Property and equipment, gross | |
|
|
|
|
|
|||||||
| Accumulated depreciation and amortization | |
|
|
|
|
|
|||||||
| Property and equipment, net | |
|
|
|
|
|
Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17), 10-K (filing date: 2015-03-12), 10-K (filing date: 2014-03-13).
| Item | Description | The company |
|---|---|---|
| Property and equipment, gross | 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. | NVIDIA Corp.’s property and equipment, gross increased from 2017 to 2018 and from 2018 to 2019. |
| Property 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. | NVIDIA Corp.’s property and equipment, net increased from 2017 to 2018 and from 2018 to 2019. |
Property, Plant and Equipment Ratios (Summary)
NVIDIA Corp., Property, Plant and Equipment Ratios
Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17), 10-K (filing date: 2015-03-12), 10-K (filing date: 2014-03-13).
| 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’s fixed asset base is old or new. Newer assets are likely to be more efficient. | NVIDIA Corp.’s average age of depreciable property, plant and equipment improved from 2017 to 2018 and from 2018 to 2019. |
| Estimated total useful life | Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. | NVIDIA Corp.’s estimated total useful life of depreciable property, plant and equipment increased from 2017 to 2018 but then slightly declined from 2018 to 2019 not reaching 2017 level. |
| Estimated time elapsed since purchase | The approximate age in years of a company’s fixed assets. Useful for comparison purposes. | NVIDIA Corp.’s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2017 to 2018 and from 2018 to 2019. |
| Estimated remaining life | NVIDIA Corp.’s estimated remaining life of depreciable property, plant and equipment increased from 2017 to 2018 but then slightly declined from 2018 to 2019. |
Average Age
Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17), 10-K (filing date: 2015-03-12), 10-K (filing date: 2014-03-13).
2019 Calculations
1 Average age = 100 × Accumulated depreciation and amortization ÷ (Property and equipment, gross – Land)
= 100 × ÷ ( – ) =
| 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’s fixed asset base is old or new. Newer assets are likely to be more efficient. | NVIDIA Corp.’s average age of depreciable property, plant and equipment improved from 2017 to 2018 and from 2018 to 2019. |
Estimated Total Useful Life
Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17), 10-K (filing date: 2015-03-12), 10-K (filing date: 2014-03-13).
2019 Calculations
1 Estimated total useful life (years) = (Property and equipment, gross – Land) ÷ Depreciation expense
= ( – ) ÷ =
| Ratio | Description | The company |
|---|---|---|
| Estimated total useful life | Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. | NVIDIA Corp.’s estimated total useful life of depreciable property, plant and equipment increased from 2017 to 2018 but then slightly declined from 2018 to 2019 not reaching 2017 level. |
Estimated Age, Time Elapsed since Purchase
Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17), 10-K (filing date: 2015-03-12), 10-K (filing date: 2014-03-13).
2019 Calculations
1 Time elapsed since purchase (years) = Accumulated depreciation and amortization ÷ Depreciation expense
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Estimated time elapsed since purchase | The approximate age in years of a company’s fixed assets. Useful for comparison purposes. | NVIDIA Corp.’s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2017 to 2018 and from 2018 to 2019. |
Estimated Remaining Life
Based on: 10-K (filing date: 2019-02-21), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-03-17), 10-K (filing date: 2015-03-12), 10-K (filing date: 2014-03-13).
2019 Calculations
1 Estimated remaining life (years) = (Property and equipment, net – Land) ÷ Depreciation expense
= ( – ) ÷ =
| Ratio | Description | The company |
|---|---|---|
| Estimated remaining life | NVIDIA Corp.’s estimated remaining life of depreciable property, plant and equipment increased from 2017 to 2018 but then slightly declined from 2018 to 2019. |