Analysis of Property, Plant and Equipment
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Property, Plant and Equipment Disclosure
NVIDIA Corp., balance sheet: property, plant and equipment
US$ in millions
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
- Land
- The value of land remained constant at 218 million USD from 2020 through 2024, before experiencing a significant increase to 511 million USD in 2025. This indicates a notable acquisition or revaluation in the final year of the period.
- Buildings, leasehold improvements, and furniture
- This category demonstrated consistent growth throughout the period. Starting at 707 million USD in 2020, it rose steadily each year to reach 2076 million USD in 2025. The most pronounced increase occurred between 2021 and 2023, reflecting substantial investments in fixed assets related to buildings and associated improvements.
- Equipment, compute hardware, and software
- There was a marked upward trend in this category, beginning at 1440 million USD in 2020 and escalating significantly to 7568 million USD in 2025. The growth accelerated particularly from 2021 onward, suggesting intensive capital expenditure focused on technology infrastructure and related equipment.
- Construction in process
- The value fluctuated over the period, starting at 320 million USD in 2020, peaking at 737 million USD in 2022, then declining to 189 million USD in 2024 before rebounding to 529 million USD in 2025. This fluctuation reflects varying stages of ongoing capital projects and the timing of asset completion and capitalization.
- Property and equipment, gross
- The gross property and equipment balance showed consistent growth, increasing from 2685 million USD in 2020 to 10684 million USD in 2025. The annual increments display a robust capital investment strategy and asset base expansion over the six-year period.
- Accumulated depreciation and amortization
- This account grew steadily negative, from -1011 million USD in 2020 to -4401 million USD in 2025, reflecting ongoing depreciation of fixed assets in line with the expanding asset base. The steady increase corresponds with the rising gross property and equipment values.
- Property and equipment, net
- The net property and equipment value exhibited continuous growth from 1674 million USD in 2020 to 6283 million USD in 2025. The increase demonstrates that additions to property and equipment have outpaced depreciation, indicating net asset growth and strengthening fixed asset holdings.
Asset Age Ratios (Summary)
NVIDIA Corp., asset age ratios
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
- Average Age Ratio
- The average age ratio shows a generally increasing trend from 40.98% in early 2020 to a peak of 48.7% in early 2024, followed by a decrease to 43.26% in early 2025. This indicates that, over the five-year span, the relative age of the property, plant, and equipment increased before slightly reducing in the most recent period.
- Estimated Total Useful Life
- The estimated total useful life remained steady at 7 years from 2020 through 2023, then increased to 8 years starting in 2024 and maintained in 2025. This change suggests a reassessment or upgrade in asset longevity assumptions during the most recent years.
- Estimated Age, Time Elapsed Since Purchase
- The estimated age of the assets remained consistently at 3 years from 2020 to 2023, increased to 4 years in 2024, and declined back to 3 years in 2025. This fluctuation may reflect asset turnover or revaluation in the recent period.
- Estimated Remaining Life
- The estimated remaining life stayed constant at 4 years throughout the entire period, indicating a stable expectation of residual useful life despite changes in other parameters.
Average Age
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
2025 Calculations
1 Average age = 100 × Accumulated depreciation and amortization ÷ (Property and equipment, gross – Land)
= 100 × ÷ ( – ) =
The analysis of the property, plant, and equipment data over the observed periods reveals several noteworthy trends and shifts.
- Accumulated Depreciation and Amortization
- There is a consistent upward trend in accumulated depreciation and amortization from 1,011 million USD in early 2020 to 4,401 million USD by early 2025. This reflects an ongoing allocation of the cost of property and equipment over time, suggesting extensive capital expenditure in prior periods and increasing asset base requiring amortization.
- Property and Equipment, Gross
- The gross property and equipment figures have risen significantly, nearly quadrupling from 2,685 million USD in early 2020 to 10,684 million USD in early 2025. This sharp increase indicates intensified capital investment in fixed assets, potentially related to capacity expansion or upgrading facilities.
- Land
- The value of land remained constant at 218 million USD for several years until early 2024, when it more than doubled to 511 million USD. This jump may represent a substantial acquisition of new land assets or revaluation reflecting market conditions.
- Average Age Ratio
- The average age ratio of the property and equipment showed a gradual increase from around 41.0% in 2020 to a peak of 48.7% in early 2024, followed by a decrease to 43.3% by early 2025. This pattern suggests assets generally aged until 2024, after which newer assets or asset replacements lowered the overall average age of the fixed asset base.
Overall, the data indicates robust investment in property and equipment assets, accompanied by rising accumulated depreciation consistent with asset aging and capital expenditure cycles. The large increase in land values and fluctuations in average age ratio provide additional context for asset management and capital strategy considerations.
Estimated Total Useful Life
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
2025 Calculations
1 Estimated total useful life = (Property and equipment, gross – Land) ÷ Depreciation expense
= ( – ) ÷ =
- Property and Equipment, Gross
- The gross value of property and equipment shows a consistent and substantial increase over the examined period, rising from $2,685 million in early 2020 to $10,684 million by early 2025. This increase indicates significant capital investment and expansion of fixed assets, with the largest absolute growth observed between 2024 and 2025.
- Land
- The recorded value for land remains constant at $218 million from 2020 through 2024, followed by a considerable increase to $511 million in early 2025. This suggests an acquisition or revaluation of land assets occurred in the final year reported.
- Depreciation Expense
- Depreciation expense has increased steadily each year, starting at $355 million in 2020 and reaching $1,300 million in 2025. The rise in depreciation aligns with the growth in property and equipment, reflecting the higher base of depreciable assets and possibly shorter depreciation cycles or changes in asset composition over time.
- Estimated Total Useful Life
- The estimated total useful life of assets remained stable at seven years from 2020 through 2023, increasing to eight years in 2024 and maintaining this estimate in 2025. The extension in useful life may indicate a change in asset mix towards longer-lived assets or a revaluation of asset longevity assumptions.
Estimated Age, Time Elapsed since Purchase
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
2025 Calculations
1 Time elapsed since purchase = Accumulated depreciation and amortization ÷ Depreciation expense
= ÷ =
- Accumulated Depreciation and Amortization
- The accumulated depreciation and amortization shows a consistent upward trend over the analyzed periods. Starting from 1,011 million USD in early 2020, it increased steadily each year, reaching 4,401 million USD by early 2025. This indicates a continuous allocation of asset cost over time, reflecting an expanding base of depreciable assets or aging of existing assets.
- Depreciation Expense
- Depreciation expense also demonstrates a rising trajectory throughout the periods reviewed. It rose from 355 million USD in January 2020 to 1,300 million USD by January 2025, with notably accelerated growth occurring between 2023 and 2025. This suggests increased asset acquisitions or changes in depreciation methods or estimates that led to higher charges during recent years.
- Time Elapsed Since Purchase
- The average time elapsed since purchase of the assets remains relatively stable, fluctuating between 3 and 4 years over the period, with a small increase to 4 years in 2024 before returning to 3 years in 2025. This stability implies a consistent turnover rate or replacement cycle of property, plant, and equipment.
- Overall Insights
- The data exhibits a clear pattern of sustained growth in both accumulated depreciation and annual depreciation expense, reflecting ongoing investment in property, plant, and equipment as well as maturation of existing assets. The relatively stable average age of assets implies that acquisitions and disposals are managed in a manner to maintain a consistent asset base lifecycle.
Estimated Remaining Life
Based on: 10-K (reporting date: 2025-01-26), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-26).
2025 Calculations
1 Estimated remaining life = (Property and equipment, net – Land) ÷ Depreciation expense
= ( – ) ÷ =
- Net Property and Equipment
- The net value of property and equipment demonstrated a consistent upward trend over the periods analyzed. Starting at $1,674 million in early 2020, it increased steadily each year, reaching $6,283 million by early 2025, representing a substantial growth. This indicates significant investments or acquisitions in property and equipment over the five-year span.
- Land
- The value of land remained constant at $218 million from 2020 through 2024, suggesting no new land purchases or disposals during this period. However, there is a notable increase to $511 million in early 2025, more than doubling the previous value. This change points to acquisition or revaluation of land assets in the latest period.
- Depreciation Expense
- Depreciation expense steadily rose from $355 million in 2020 to $1,300 million by 2025. The increase reflects expanding depreciable asset bases or changes in depreciation policies. The growth in depreciation expense corresponds logically with the increase in net property and equipment value, confirming ongoing asset additions or investments.
- Estimated Remaining Life
- The estimated remaining life of the assets remained constant at 4 years throughout the entire timeframe. This stability indicates no significant changes to the expected lifespan assumptions for the assets recorded.