Analysis of Property, Plant and Equipment
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- Balance Sheet: Assets
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Return on Equity (ROE) since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Revenues
- Aggregate Accruals
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Property, Plant and Equipment Disclosure
Qualcomm Inc., balance sheet: property, plant and equipment
US$ in millions
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-09-24), 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
- Land
- The value of land remained relatively stable over the analyzed period, fluctuating slightly between 169 and 173 million US dollars, ultimately holding steady at 169 million US dollars by the end of the period.
- Buildings and improvements
- There is a clear upward trend in the value of buildings and improvements, increasing steadily from 1,546 million US dollars in 2019 to 1,888 million US dollars in 2024, reflecting ongoing investments or enhancements in physical infrastructure.
- Computer equipment and software
- This category shows consistent growth throughout the period, rising from 1,356 million US dollars in 2019 to 2,022 million US dollars in 2024, indicating sustained investment in technological assets.
- Machinery and equipment
- Machinery and equipment values demonstrate significant growth, climbing from 4,007 million US dollars in 2019 to 8,647 million US dollars in 2024. The increase is substantial and continuous, suggesting a major focus on production or operational capacity expansion.
- Furniture and office equipment
- The value of furniture and office equipment increased moderately over the years, moving from 86 million US dollars in 2019 to 139 million US dollars in 2024, indicating gradual upgrades or additions in this category.
- Leasehold improvements
- Leasehold improvements increased steadily from 301 million US dollars in 2019 to 550 million US dollars in 2024, with a noticeable jump between 2021 and 2024, showing possibly intensified refurbishment or leasing activity.
- Construction in progress
- The value of construction in progress fluctuated during the period, starting at 182 million US dollars in 2019, peaking at 330 million in 2022, before declining to 126 million by 2024, indicating a winding down of ongoing construction projects toward the latter part of the period.
- Property, plant and equipment, gross
- The gross property, plant, and equipment value exhibited a strong upward trend, rising from 7,648 million US dollars in 2019 to 13,541 million US dollars in 2024, pointing to overall asset growth through acquisitions and capital expenditures.
- Accumulated depreciation and amortization
- This accumulated figure increased in magnitude negatively from -4,567 million US dollars in 2019 to -8,876 million US dollars in 2024, reflecting the aging and usage of assets over time. The consistent increase in accumulated depreciation aligns with the growth in gross assets.
- Property, plant and equipment, net
- The net property, plant, and equipment value showed an increasing trend from 3,081 million US dollars in 2019 to a peak of 5,168 million US dollars in 2022. However, it slightly decreased afterward to 4,665 million US dollars in 2024, suggesting that depreciation and amortization expenses began to outpace new capital expenditures or asset additions in the last two years.
Asset Age Ratios (Summary)
Qualcomm Inc., asset age ratios
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-09-24), 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
- Average Age Ratio
- The average age ratio demonstrates a fluctuating trend over the reviewed periods. Starting at 61.07% in 2019, it decreased consistently to a low of 56.91% by 2022. However, in the subsequent years, this ratio reversed direction, rising to 61.14% in 2023 and further to 66.38% in 2024, indicating an aging asset base towards the end of the period.
- Estimated Total Useful Life
- The estimated total useful life of the assets showed a downward adjustment from 11 years in 2019 and 2020 down to 9 years during 2022 and 2023. In 2024, the useful life estimate was slightly increased back to 10 years. This reflects a reconsideration of asset longevity assumptions over time, possibly due to changes in asset utilization or technological advancements.
- Estimated Age, Time Elapsed Since Purchase
- The estimated age of assets decreased from 7 years in 2019 and 2020 to 5 years by 2022 and 2023, before increasing slightly to 6 years in 2024. This pattern suggests newer assets were acquired up to 2022, lowering the average age, followed by less acquisition or longer retention of assets in 2024, leading to an older average asset age.
- Estimated Remaining Life
- The estimated remaining life exhibited some variability, initially increasing from 4 years in 2019 to 5 years in 2020, then reverting to 4 years in 2021 and 2022, and subsequently decreasing to 3 years in both 2023 and 2024. This decline in remaining life towards the end of the period indicates that the asset base is approaching the end of its useful life cycle, potentially necessitating reinvestment or replacement in the near term.
Average Age
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-09-24), 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
2024 Calculations
1 Average age = 100 × Accumulated depreciation and amortization ÷ (Property, plant and equipment, gross – Land)
= 100 × ÷ ( – ) =
- Accumulated Depreciation and Amortization
- There is a consistent increase in the accumulated depreciation and amortization over the six-year period, rising from 4,567 million USD in 2019 to 8,876 million USD in 2024. This indicates ongoing usage and aging of property, plant, and equipment, reflecting continued depreciation expenses each year.
- Property, Plant, and Equipment, Gross
- The gross value of property, plant, and equipment has shown a steady growth from 7,648 million USD in 2019 to 13,541 million USD in 2024. This suggests sustained investments in acquiring or upgrading assets during this period, supporting operational capacity expansion or replacement of old assets.
- Land
- The value attributed to land remains relatively stable, fluctuating marginally between 169 million USD and 173 million USD across the years. This stability reflects the non-depreciable nature of land assets and indicates no significant land acquisitions or disposals within the period analyzed.
- Average Age Ratio
- The average age ratio exhibits a decline from 61.07% in 2019 to a low of 56.91% in 2022, implying a relatively younger asset base during that time. However, this trend reverses with an increase to 66.38% by 2024, indicating that the asset base is aging and the proportion of older assets is growing. This change could reflect slower asset replacement or increasing reliance on older equipment in recent years.
Estimated Total Useful Life
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-09-24), 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
2024 Calculations
1 Estimated total useful life = (Property, plant and equipment, gross – Land) ÷ Depreciation and amortization expense related to property, plant and equipment
= ( – ) ÷ =
- Property, Plant, and Equipment, Gross
- The gross value of property, plant, and equipment exhibited a consistent upward trend over the six-year period. Starting at $7,648 million in 2019, it increased steadily each year, reaching $13,541 million by 2024. This reflects ongoing investment and expansion in fixed assets, with an overall increase of approximately 77% from 2019 to 2024.
- Land
- The land value remained relatively stable throughout the years, fluctuating minimally between $169 million and $173 million. This stability suggests that land holdings have not been a significant focus for changes or acquisitions during this time frame.
- Depreciation and Amortization Expense Related to Property, Plant, and Equipment
- The depreciation and amortization expense displayed a notable upward trend, increasing from $674 million in 2019 to $1,400 million in both 2023 and 2024. This doubling over six years indicates a growing depreciation charge, likely reflecting the higher gross asset base and possibly adjustments in depreciation methods or accelerated asset usage.
- Estimated Total Useful Life
- There was a decrease in the estimated total useful life from 11 years in 2019 and 2020 to 9 years in 2022 and 2023, followed by a slight increase back to 10 years in 2024. This variation implies adjustments in asset depreciation policies or changes in the expected economic life of property, plant, and equipment, perhaps to align with industry standards or asset conditions.
Estimated Age, Time Elapsed since Purchase
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-09-24), 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
2024 Calculations
1 Time elapsed since purchase = Accumulated depreciation and amortization ÷ Depreciation and amortization expense related to property, plant and equipment
= ÷ =
- Accumulated Depreciation and Amortization
- The accumulated depreciation and amortization of property, plant, and equipment show a consistent upward trend over the six-year period. Beginning at 4,567 million US dollars in 2019, this figure steadily increased each year to reach 8,876 million US dollars by 2024. This indicates ongoing wear and allocation of costs on existing assets, reflecting both asset aging and possibly new asset additions being depreciated.
- Depreciation and Amortization Expense
- The annual depreciation and amortization expenses related to property, plant, and equipment increased notably from 674 million US dollars in 2019 to a peak of 1,400 million US dollars in 2023 and remained flat into 2024. This upward movement suggests an increase in capital expenditures or changes in depreciation policies, leading to higher periodic expenses. The stabilization of expense at 1,400 million US dollars in the last two reported years indicates a possible plateau in asset additions or the recognition of a steady state in depreciation charges.
- Time Elapsed Since Purchase
- The average time elapsed since the purchase of property, plant, and equipment hovered around 7 years initially, decreased to 5 years between 2022 and 2023, and slightly increased to 6 years in 2024. The reduction in asset age suggests that the company invested in newer assets during the middle years, while the slight increase in the final year may reflect a mix of aging assets and more recent acquisitions.
- Summary Insights
- Overall, the data reveal a company actively managing and renewing its property, plant, and equipment base, as evidenced by increasing depreciation expenses and shifting average asset age. The accumulated depreciation nearly doubled over the period, indicating substantial asset utilization and capital investment. Stable depreciation expenses in the recent years imply a steady approach to asset management. These trends collectively suggest that the company maintains significant ongoing investment in its tangible assets, with careful attention to the aging profile and expense recognition associated with these assets.
Estimated Remaining Life
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-09-24), 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
2024 Calculations
1 Estimated remaining life = (Property, plant and equipment, net – Land) ÷ Depreciation and amortization expense related to property, plant and equipment
= ( – ) ÷ =
- Property, plant and equipment, net
- Over the six-year period, the net value of property, plant, and equipment exhibited an overall upward trend from 3,081 million USD in 2019 to a peak of 5,168 million USD in 2022. However, this was followed by a decline in 2023 and 2024, with values decreasing to 4,665 million USD by the end of the period. This pattern suggests substantial investments and additions to fixed assets up to 2022, followed by asset disposals, impairments, or reduced capital expenditure in the subsequent years.
- Land
- The reported value of land remained relatively stable, fluctuating minimally between 169 million and 173 million USD across the entire timeframe. This stability indicates no significant transactions involving land assets during the period.
- Depreciation and amortization expense related to property, plant and equipment
- The depreciation and amortization expenses demonstrated a consistent increase from 674 million USD in 2019 to 1,400 million USD in both 2023 and 2024. This rising expense aligns with the prior growth in asset base, reflecting higher consumption of asset value through wear and tear or usage over time, reaching a plateau in the final two years.
- Estimated remaining life
- The estimated remaining life of the property, plant, and equipment exhibited minor fluctuations, starting at 4 years in 2019, rising to 5 years in 2020, before gradually declining to 3 years in 2023 and 2024. The reduction in estimated remaining life may indicate aging of the asset base or a shift in asset composition towards assets with shorter useful lives.