eBay Inc. (NASDAQ:EBAY)

The financial data reveals notable trends in the property, plant, and equipment assets over the five-year period. The gross value of property and equipment shows a general upward trend from 2015 onwards, increasing from US$5,078 million in 2015 to US$6,344 million by the end of 2018, reflecting ongoing investments or acquisitions in the company's tangible assets after a significant decline between 2014 and 2015.

Computer equipment and software

This category experienced a sharp decline from US$6,073 million in 2014 to US$3,894 million in 2015. However, it then displayed consistent growth each subsequent year, reaching US$4,933 million by 2018. This pattern suggests a significant asset write-down or disposal event followed by steady reinvestment in technology infrastructure.

Land and buildings, including building improvements

This asset class steadily decreased from US$943 million in 2014 to US$591 million in 2015, then remained relatively stable with a slight upward trend reaching US$713 million in 2018. This stability with moderate increase may indicate limited new acquisitions but ongoing improvements or valuations adjustments.

Leasehold improvements

Leasehold improvements saw a similar negative shock dropping from US$549 million in 2014 to US$305 million in 2015, followed by a gradual recovery and growth to US$399 million by 2018, indicative of progressive upgrading or new leasing arrangements.

Furniture and fixtures

Values sharply contracted from US$350 million in 2014 to US$157 million by 2015, thereafter remaining flat through 2018. This stabilization post-decline could imply a consolidation in asset holdings or a shift in capital allocation away from this category.

Construction in progress and other

This category decreased from US$331 million in 2014 to US$131 million in 2015, increased to US$239 million in 2017, then fell again to US$130 million in 2018. The fluctuation in ongoing construction projects suggests variability in capital projects or timing differences in capitalization.

Accumulated depreciation

Accumulated depreciation consistently increased in magnitude (more negative), from -US$5,344 million in 2014 to -US$4,747 million in 2018. The decreasing absolute figure from 2014 to 2015 aligns with the decline in gross assets, whereas the subsequent increases reflect ongoing depreciation expenses aligned with asset growth.

Property and equipment, net

The net property and equipment balance dropped sharply from US$2,902 million in 2014 to US$1,554 million in 2015 and then remained relatively flat through to 2018, ending at US$1,597 million. This indicates that although gross assets increased after 2015, accumulated depreciation also grew correspondingly, resulting in a stable net asset base over the latter years.

Average Age Ratio

The average age ratio shows a consistent upward trend from 64.81% in 2014 to 74.83% in 2018. This indicates that the proportion of the asset's life that has been used is increasing steadily, suggesting aging property, plant, and equipment over the observed periods.

Estimated Total Useful Life

The estimated total useful life of the property, plant, and equipment rises from 7 years in 2014 to 10 years by 2017, where it remains steady through 2018. This suggests improvements or extensions in expected asset longevity, possibly due to changes in asset composition, maintenance, or reassessments of asset categories.

Estimated Age (Time Elapsed Since Purchase)

The estimated age of assets increases year-over-year from 5 years in 2014 to 8 years in 2018. The increase is consistent until 2016, after which the age remains stable at 7 years before increasing again to 8 years in 2018. This stability in 2017 suggests a possible slowdown in new asset acquisitions or a balancing between older and newer assets.

Estimated Remaining Life

The estimated remaining life remains constant at 3 years throughout all periods from 2014 to 2018. Despite changes in other parameters, this stability indicates a consistent expectation of asset usability going forward, possibly reflecting company policies on asset replacement or maintenance plans.

The financial data reveals distinct trends in the company's property, plant, and equipment over the five-year period ending in 2018.

Accumulated Depreciation

There is a notable increase in accumulated depreciation from 2015 onwards, rising from 3,524 million USD to 4,747 million USD by 2018. This suggests ongoing depreciation expenses, reflecting the aging or usage of the property and equipment assets during this period. The initial decrease from 5,344 million USD in 2014 to 3,524 million USD in 2015 is an anomaly that could indicate asset disposals or revaluation adjustments.

Property and Equipment, Gross

The gross value of property and equipment shows a consistent upward trend starting from 2015, increasing from 5,078 million USD to 6,344 million USD in 2018. This progression indicates capital investments or asset acquisitions over the years. However, the sharp decline from 8,246 million USD in 2014 to 5,078 million USD in 2015 marks a significant reduction in gross assets, possibly due to asset disposals or write-downs.

Average Age Ratio

The average age ratio exhibits steady growth throughout the period, moving from 64.81% in 2014 to 74.83% in 2018. This trend indicates an increasing average age of the property and equipment portfolio, suggesting that assets are aging and may be subject to higher maintenance costs or imminent replacement needs.

Overall, the data highlights a period of restructuring or realignment in 2015, followed by gradual asset accumulation and aging. The increasing average age ratio alongside rising accumulated depreciation underscores the importance of monitoring asset replacement and reinvestment strategies going forward.

Property and Equipment, Gross

The gross value of property and equipment exhibited a marked decline from 8,246 million US dollars at the end of 2014 to 5,078 million in 2015. Subsequently, a gradual recovery trend is observed, reaching 6,344 million by the end of 2018. This pattern suggests a significant reduction in assets held or acquired in 2015, followed by moderate growth in subsequent years.

Depreciation Expense on Property and Equipment

The depreciation expense decreased substantially from 1,100 million US dollars in 2014 to 614 million in 2015, mirroring the sharp reduction in gross property and equipment. Between 2015 and 2018, depreciation expenses remained relatively stable, fluctuating slightly around the 600 million mark, despite the increase in gross property and equipment during this period.

Estimated Total Useful Life

The estimated total useful life of property and equipment showed an upward trend yearly, starting at 7 years in 2014 and extending to 10 years by 2017 and 2018. This increase indicates a longer expected lifespan for assets, which can contribute to a lower annual depreciation charge relative to asset value.

Overall Observations

The data presents a scenario where gross property and equipment experienced a significant reduction early in the period but began to recover later on. The corresponding depreciation expense dropped sharply in the same initial timeframe and then stabilized. The increase in estimated useful life suggests changes in asset composition or depreciation policies, potentially extending asset valuation periods and influencing expense recognition. This combination of asset value decline and extended useful life likely contributed to the observed depreciation expense trends.

Accumulated Depreciation

The accumulated depreciation exhibited a fluctuating trend over the five-year period. Initially, the figure decreased significantly from 5,344 million USD in 2014 to 3,524 million USD in 2015. Following this decline, accumulated depreciation increased steadily each year, reaching 4,747 million USD by the end of 2018. This pattern suggests a possible adjustment or reassessment in asset valuation or depreciation application between 2014 and 2015, followed by consistent depreciation accumulation in subsequent years.

Depreciation Expense on Property and Equipment

The annual depreciation expense decreased sharply from 1,100 million USD in 2014 to approximately 610 million USD in 2015. Thereafter, the expense remained relatively stable, fluctuating slightly between 605 and 626 million USD through 2018. This consistency in depreciation expense after the initial drop indicates a relatively stable level of depreciation charges, potentially reflecting steady asset usage or acquisitions without significant changes in asset base acquisition cost or depreciation methods.

Time Elapsed Since Purchase

The average time elapsed since purchase of the property and equipment increased gradually from 5 years in 2014 to 8 years by the end of 2018. This indicates that the asset base is aging, which could influence maintenance costs, asset efficiency, and the company's future capital expenditure strategies.

Overall Analysis

The data reveals a notable reset or change in accumulated depreciation between 2014 and 2015, followed by a stable upward trend consistent with ongoing depreciation. Depreciation expenses stabilized after the initial drop, reflecting a consistent approach to asset depreciation over time. The steady increase in the average age of assets suggests a maturing asset base, which may necessitate future investments in property, plant, and equipment to maintain operational capacity or technological relevance.

Property and Equipment, Net

The net value of property and equipment exhibits a sharp decline from 2014 to 2015, decreasing from 2,902 million USD to 1,554 million USD. From 2015 onwards, the value remains relatively stable, with minor fluctuations, closing at 1,597 million USD in both 2017 and 2018.

Depreciation Expense on Property and Equipment

The depreciation expense also shows a marked decrease from 2014 to 2015, dropping from 1,100 million USD to 614 million USD. After 2015, the expense remains fairly consistent, fluctuating slightly around the 600 million USD mark before reaching 626 million USD in 2018.

Estimated Remaining Life

The estimated remaining life of property and equipment maintains a constant value of 3 years throughout the entire period under review, indicating no change in depreciation policy or asset lifespan expectations.