Abbott Laboratories (NYSE:ABT)

Land

The value of land shows a gradual decrease from 538 million US dollars in 2020 to 511 million in 2022, followed by a slight recovery to 529 million in 2023 and a minimal decline to 528 million in 2024. Overall, the land value remains relatively stable with minor fluctuations over the five-year period.

Buildings

The building assets remain relatively stable between 2020 and 2021, with a marginal decrease from 4,014 million to 4,007 million US dollars. However, starting in 2022, a consistent upward trend is observed, increasing to 4,053 million, then to 4,161 million in 2023 and reaching 4,207 million in 2024. This indicates steady ongoing investment or revaluation in buildings.

Equipment

Equipment shows a consistent and notable increase throughout the period, rising from 12,884 million US dollars in 2020 to 15,517 million in 2024. This reflects continuous capital expenditure or asset acquisition, marking it as the most significant growing asset category within the property and equipment segment.

Construction in Progress

Construction in progress fluctuates but demonstrates a clear upward trajectory from 1,357 million US dollars in 2020 to 2,488 million in 2024. This suggests increased spending on projects not yet completed, with a notable acceleration starting in 2022 and continuing through to 2024.

Property and Equipment, at Cost

The overall cost of property and equipment increases steadily from 18,793 million US dollars in 2020 to 22,740 million in 2024. This supports the observed increases in buildings, equipment, and construction in progress, reflecting sustained capital investment over the years.

Accumulated Depreciation and Amortization

Accumulated depreciation and amortization continuously increase in magnitude (more negative), growing from -9,764 million US dollars in 2020 to -12,082 million in 2024. This progressive increase aligns with aging assets and ongoing usage, indicating systematic expensing of asset value over time.

Net Property and Equipment

Net property and equipment, reflecting the book value after depreciation, fluctuates slightly in the initial years, declining from 9,029 million US dollars in 2020 to 8,959 million in 2021, then rising modestly to 9,162 million in 2022. From 2022 onwards, there is a clear upward trend, increasing to 10,154 million in 2023 and reaching 10,658 million in 2024. This suggests that asset additions and capital investments outpace depreciation, leading to growth in net asset value.

Average Age Ratio

The average age ratio experiences a gradual increase from 53.49% in 2020 to a peak of 56.09% in 2022, indicating that the property, plant, and equipment (PP&E) were becoming older relative to their useful lives during this period. After 2022, the ratio decreases slightly, reaching 54.39% in 2024, which suggests a modest rejuvenation or replacement activity in the asset base.

Estimated Total Useful Life

The estimated total useful life shows variability across the years. It decreases from 15 years in 2020 to 13 years in 2021, signifying a potential revision or recognition of shorter asset lives at that point. Then, a notable increase occurs, with the estimated life rising to 16 years in 2022 and further stabilizing at 17 years for both 2023 and 2024. This may reflect changes in asset composition or updated assessments extending expected usage periods.

Estimated Age (Time Elapsed Since Purchase)

The estimated age of the assets fluctuates moderately, starting at 8 years in 2020, declining to 7 in 2021, and then increasing back to 9 years from 2022 onward. This pattern suggests variations in asset acquisition timing or disposals, with a trend towards a slightly older asset base maintaining consistency after 2022.

Estimated Remaining Life

The estimated remaining life generally decreases from 7 years in 2020 to 6 years in 2021, followed by an increase to 7 years in 2022 and a further increase to 8 years in both 2023 and 2024. This indicates a shift towards assets with longer remaining useful lives in the later years, which may result from asset additions or revisions in asset life assumptions.

The accumulated depreciation and amortization values exhibit a consistent upward trajectory, increasing steadily from US$9,764 million in 2020 to US$12,082 million in 2024. This indicates ongoing depreciation charges and possibly steady additions to depreciable assets over the period.

The cost of property and equipment shows a gradual increase each year, rising from US$18,793 million in 2020 to US$22,740 million in 2024. This reflects continued investment in property and equipment, contributing to the increase in the asset base.

The value of land remains relatively stable, with minor fluctuations between US$538 million and US$511 million over the five years, suggesting limited acquisition or disposal activity related to land holdings.

The average age ratio displays slight variability but stays within a narrow range, peaking at 56.09% in 2022 before decreasing to 54.39% in 2024. This implies that while the portfolio of assets has aged marginally, recent investments or disposals have maintained the average age close to the earlier levels.

Key observations:

The growth in accumulated depreciation and amortization aligns with the rising cost of property and equipment, indicating consistent asset utilization and investment.

Land value stability suggests little change in this non-depreciable asset class.

The average age ratio’s minor fluctuations point to an asset base balanced between older and newer property and equipment.

Property and Equipment at Cost

The cost of property and equipment shows a consistent upward trend over the five-year period. Starting from US$18,793 million in 2020, it increased gradually each year, reaching US$22,740 million by 2024. This indicates ongoing investment in fixed assets, with a notable acceleration in growth between 2022 and 2023.

Land

The value of land remained relatively stable throughout the period, fluctuating slightly but showing no clear upward or downward trend. It started at US$538 million in 2020 and ended at US$528 million in 2024, indicating minimal changes in land holdings or valuation adjustments over time.

Depreciation Expense

Depreciation expense showed variability during the period. It increased significantly from US$1,195 million in 2020 to a peak of US$1,491 million in 2021, followed by a decline in 2022 to US$1,254 million. Afterward, it slightly rose again, reaching US$1,340 million in 2024. The fluctuations suggest changes in asset composition, useful life estimation, or depreciation policy adjustments.

Estimated Total Useful Life

The estimated total useful life of the assets demonstrated some variation, starting at 15 years in 2020, dropping to 13 years in 2021, and then increasing steadily to 17 years by 2023 and maintaining that level in 2024. The increase in estimated useful life may reflect re-assessments of asset longevity or optimization of asset management strategies, which could impact depreciation calculations.

Accumulated Depreciation and Amortization

The accumulated depreciation and amortization values demonstrate a steady increase over the observed periods. Beginning at 9,764 million US dollars at the end of 2020, this figure rose consistently each year, reaching 12,082 million by the end of 2024. This upward trend indicates ongoing usage and aging of property, plant, and equipment assets, reflecting continued wear and consumption of these assets over time.

Depreciation Expense

The depreciation expense shows some variability within the timeframe. It increased notably from 1,195 million US dollars in 2020 to a peak of 1,491 million in 2021, followed by a decrease to 1,254 million in 2022. Subsequently, it experienced minor increases to 1,277 million in 2023 and 1,340 million in 2024. This fluctuation may indicate changing levels of asset additions and retirements or adjustments in depreciation policies or estimates.

Time Elapsed Since Purchase

The average time elapsed since purchase for the assets displayed some movement, decreasing from 8 years in 2020 to 7 years in 2021, before stabilizing at 9 years for the following three years up to 2024. This pattern suggests a refresh or acquisition of newer assets in 2021, followed by accumulation of older assets on the books in subsequent years, which aligns with the continuous rise in accumulated depreciation.

The analysis of the property, plant, and equipment data over the five-year period reveals several notable trends and patterns. The net property and equipment values showed a general increasing trend. Starting from approximately 9,029 million US dollars at the end of 2020, the value slightly decreased in 2021 but subsequently increased each year, reaching about 10,658 million US dollars by the end of 2024. This suggests consistent investment or appreciation in fixed assets over time.

In contrast, the land value exhibited a stable pattern with a minor downward trend. Beginning at 538 million US dollars in 2020, it gradually decreased to 528 million US dollars by 2024, indicating relatively stable land holdings with slight devaluation or disposals.

The depreciation expense fluctuated between 1,195 million US dollars and 1,491 million US dollars over the period. The expense peaked in 2021, then decreased in 2022, and gradually increased again through 2024, reaching 1,340 million US dollars. This fluctuation might reflect changes in asset acquisition timing, shifts in depreciation methods or rates, or variations in disposed assets.

The estimated remaining life of the assets remained fairly stable, with a slight reduction from 7 years in 2020 to 6 years in 2021, then returning and increasing to 8 years by 2023 and maintaining this through 2024. This change indicates adjustments in asset base composition or updated assessments of asset useful life over time.

Net Property and Equipment

Displayed an overall upward trend from 9,029 million to 10,658 million US dollars, indicating asset growth despite a minor dip in 2021.

Land

Remained relatively stable around mid-500 million US dollars with a gradual slight decline, suggesting limited changes in land assets.

Depreciation Expense

Experienced variability with a peak in 2021, a decrease in 2022, followed by a gradual increase through 2024, reflecting dynamic asset valuation and usage patterns.

Estimated Remaining Life

Fluctuated modestly from 7 to 6 years, then increased to 8 years, indicating asset base changes or reassessment of asset longevity.