Analysis of Property, Plant and Equipment
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- Common-Size Balance Sheet: Assets
- Analysis of Solvency Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Debt to Equity since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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Property, Plant and Equipment Disclosure
Amphenol Corp., balance sheet: property, plant and equipment
US$ in thousands
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Land and Improvements
- The value of land and improvements shows moderate fluctuations over the five-year period. Starting at 34,800 thousand US dollars in 2019, it declined slightly to 33,500 thousand in 2020, then increased marginally to 34,900 thousand in 2021. The figure dropped to its lowest point of 30,200 thousand in 2022 before recovering to 33,900 thousand in 2023. Overall, the trend reflects relative stability with minor year-to-year variability.
- Buildings and Improvements
- This asset category exhibits a consistent upward trend throughout the period. From 347,400 thousand in 2019, there was steady growth each year, reaching 394,300 thousand in 2020, 420,600 thousand in 2021, 428,900 thousand in 2022, and peaking at 483,900 thousand in 2023. The increase signifies ongoing investments or capital improvements in building infrastructure.
- Machinery and Equipment
- Machinery and equipment show considerable growth across the years. Starting at 1,800,400 thousand in 2019, the balance rose to 2,040,100 thousand in 2020, escalated further to 2,332,300 thousand in 2021, saw a smaller increase to 2,377,300 thousand in 2022, and then markedly increased to 2,628,400 thousand in 2023. The overall trajectory implies substantial capital expenditures or asset additions in this category, with a slight moderation in growth during 2022.
- Office Equipment and Other
- This category also displays a steady upward trend, increasing annually from 303,600 thousand in 2019 to 325,300 thousand in 2020, 349,100 thousand in 2021, 387,200 thousand in 2022, and reaching 430,300 thousand in 2023. The data suggests a consistent augmentation of office equipment and miscellaneous assets over time.
- Property, Plant and Equipment, Gross
- The gross value of property, plant, and equipment demonstrates a clear and sustained increase from 2,486,200 thousand in 2019 to 3,576,500 thousand in 2023. The steady rise reflects cumulative acquisition and capitalization of assets across all components, consistent with the growth seen in individual asset categories.
- Accumulated Depreciation
- The accumulated depreciation figures, expressed as negative values, also increase in magnitude over the period, moving from -1,487,200 thousand in 2019 to -2,261,800 thousand in 2023. This trend indicates ongoing depreciation charges that correspond with the age and usage of the capital assets, reflecting the consumption of economic benefits associated with the property's assets.
- Property, Plant and Equipment, Net
- Net property, plant, and equipment balances show a consistent upward trend, rising from 999,000 thousand in 2019 to 1,314,700 thousand in 2023. This increment is the net effect of increasing gross asset values coupled with growing accumulated depreciation. The rise in net PPE signals expansion and reinforcement of the asset base, likely supporting operational growth or modernization.
Asset Age Ratios (Summary)
Amphenol Corp., asset age ratios
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Average Age Ratio
- The average age ratio exhibits a gradual increasing trend over the five-year period. It started at 60.67% in 2019, rising steadily each year to reach 63.85% in 2023. This suggests a moderate aging of the property, plant, and equipment portfolio, indicating that assets are being utilized for a longer portion of their estimated useful life.
- Estimated Total Useful Life
- The estimated total useful life showed minor fluctuations, beginning at 10 years in 2019, increasing to 11 years in 2020, then returning to 10 years for 2021 and 2022, and finally rising again to 11 years in 2023. This indicates a relatively stable expectation of asset longevity with occasional adjustments, possibly reflecting updated assessments of asset durability or technological changes.
- Estimated Age, Time Elapsed Since Purchase
- The estimated age of assets demonstrates some variability, starting at 6 years in 2019, increasing to 7 years in 2020, then dropping back to 6 in 2021 before stabilizing at 7 years for both 2022 and 2023. This pattern suggests either the incorporation of newer assets in 2021 or reevaluation of asset ages, but generally points to a mature asset base with an average age close to 6-7 years.
- Estimated Remaining Life
- The estimated remaining life has remained consistently stable at 4 years throughout the entire period from 2019 to 2023. This consistency highlights a steady expectation of residual value and usability of the assets without significant impairment or accelerated depreciation affecting their lifespan.
- Summary of Insights
- Overall, the data reveals a steady state in the management and condition of property, plant, and equipment. The gradual increase in average age ratio aligns with the aging asset profile, while the total useful life estimates and remaining life stability indicate maintained confidence in asset utility. Fluctuations in estimated asset age may reflect periodic asset additions or recalibrations, but do not significantly alter the long-term outlook. These trends suggest ongoing plans for asset maintenance and possible incremental asset replacement or upgrades.
Average Age
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
2023 Calculations
1 Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, gross – Land and improvements)
= 100 × ÷ ( – ) =
- Accumulated Depreciation
- The accumulated depreciation has shown a consistent upward trend over the five-year period. Starting at $1,487,200 thousand in December 2019, it increased steadily each year, reaching $2,261,800 thousand by December 2023. This reflects ongoing wear and usage of the property, plant, and equipment assets.
- Property, Plant and Equipment, Gross
- The gross value of property, plant, and equipment also experienced consistent growth from $2,486,200 thousand at the end of 2019 to $3,576,500 thousand in 2023. This indicates ongoing investments or acquisitions of fixed assets over the years, demonstrating expansion or modernization efforts.
- Land and Improvements
- Land and improvements values have remained relatively stable throughout the observed period, fluctuating slightly between $33,500 thousand and $34,900 thousand. The lowest point was in 2022 at $30,200 thousand, with a partial rebound to $33,900 thousand in 2023. This stability suggests limited new acquisitions or disposals in this asset category.
- Average Age Ratio
- The average age ratio expressed as a percentage increased gradually from 60.67% in 2019 to 63.85% in 2023. This slow rise suggests assets are aging progressively, with depreciation accumulating faster than the gross asset base is growing, which may imply a relatively slower pace of asset replacement or additions compared to the aging of existing assets.
Estimated Total Useful Life
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
2023 Calculations
1 Estimated total useful life = (Property, plant and equipment, gross – Land and improvements) ÷ Depreciation expense
= ( – ) ÷ =
- Property, Plant, and Equipment, Gross
- There is a consistent upward trend in the gross value of property, plant, and equipment over the five-year period. Beginning at 2,486,200 thousand USD in 2019, the value increased steadily each year, reaching 3,576,500 thousand USD by the end of 2023. This represents an overall growth trend, signifying ongoing investments or acquisitions in long-term tangible assets.
- Land and Improvements
- The value of land and improvements has fluctuated modestly across the years. Starting at 34,800 thousand USD in 2019, it slightly decreased to 33,500 thousand USD in 2020, then increased to 34,900 thousand USD in 2021. In 2022, it notably declined to 30,200 thousand USD before rising again to 33,900 thousand USD in 2023. Overall, the values have remained relatively stable with minor variations, indicating limited expansion or divestment in this category.
- Depreciation Expense
- Depreciation expense demonstrates a continuous increase over the period, rising from 240,000 thousand USD in 2019 to 313,700 thousand USD in 2023. This upward movement reflects an expanding asset base subject to depreciation, consistent with the growth in gross property, plant, and equipment. The increasing depreciation expense indicates higher allocation of costs to reflect asset usage and wear over time.
- Estimated Total Useful Life
- The estimated total useful life of the assets shows minor variation, oscillating between 10 and 11 years throughout the timeframe. After being 10 years in 2019, it increased to 11 years in 2020, reverted to 10 years for 2021 and 2022, and returned to 11 years in 2023. This suggests occasional reassessment of asset longevity, possibly reflecting changes in asset composition or revised management estimates.
Estimated Age, Time Elapsed since Purchase
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
2023 Calculations
1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= ÷ =
- Accumulated Depreciation
- The accumulated depreciation demonstrates a consistent upward trend across the five-year period. Starting at 1,487,200 thousand US dollars in 2019, it steadily increased each year to reach 2,261,800 thousand US dollars by the end of 2023. This reflects ongoing asset utilization and depreciation accumulation in the company’s property, plant, and equipment portfolio.
- Depreciation Expense
- Depreciation expense shows a general increase over the analyzed timeframe. Beginning at 240,000 thousand US dollars in 2019, it rose to 313,700 thousand US dollars in 2023. Notably, the highest incremental increase appears between 2020 and 2021, indicating possible additions or changes in asset valuation or depreciation methods during that period. The expenses have stabilized somewhat in the last two years, showing only marginal increases.
- Time Elapsed Since Purchase
- The time elapsed since purchase fluctuates slightly but generally remains within a range of 6 to 7 years. This suggests that the asset base has a relatively consistent age profile without significant recent large-scale acquisitions or retirements impacting the average asset age.
- Overall Insights
- The data indicates ongoing capital asset usage with continuous depreciation accumulation. The increase in depreciation expense alongside a fairly stable elapsed time suggests steady investment in property, plant, and equipment with assets aging consistently. The steady growth in accumulated depreciation also signals that the company's asset base is being systematically depreciated, reflecting a mature asset lifecycle without abrupt changes. This trend supports the interpretation of stable asset management and steady capital expenditure practices over the observed years.
Estimated Remaining Life
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
2023 Calculations
1 Estimated remaining life = (Property, plant and equipment, net – Land and improvements) ÷ Depreciation expense
= ( – ) ÷ =
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment displayed a consistent upward trend from 2019 through 2023. Starting at $999,000 thousand in 2019, it increased steadily each year, reaching $1,314,700 thousand by the end of 2023. This represents a cumulative growth of approximately 31.6% over the five-year period, indicating ongoing investments or capital expenditures offsetting depreciation.
- Land and Improvements
- The value of land and improvements remained relatively stable with minor fluctuations over the observed period. Beginning at $34,800 thousand in 2019, it marginally decreased to $33,500 thousand in 2020, increased to $34,900 thousand in 2021, then dropped to $30,200 thousand in 2022 before slightly rising again to $33,900 thousand in 2023. This suggests limited acquisition or disposal activity related to land assets and a generally stable valuation approach.
- Depreciation Expense
- Depreciation expense exhibited a steady and notable increase each year. In 2019, it was recorded at $240,000 thousand and rose consistently to $313,700 thousand by 2023. This upward trajectory reflects the aging of assets and increased capital base subject to depreciation, aligning with the rising net property and equipment values.
- Estimated Remaining Life
- The estimated remaining life of property, plant, and equipment assets was consistently reported as 4 years throughout the entire period. This stable figure indicates management’s consistent assumption or policy for asset useful life estimation, which facilitates comparability over time.