Analysis of Property, Plant and Equipment
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Property, Plant and Equipment Disclosure
Boeing Co., balance sheet: property, plant and equipment
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
- Land
- The value of land exhibits a declining trend over the observed periods, decreasing from $512 million in 2020 to $353 million in 2024. This consistent reduction suggests possible disposals or revaluations impacting the land asset base.
- Buildings and Land Improvements
- There is a gradual increase in the carrying amount of buildings and land improvements, rising from $14,415 million in 2020 to $14,985 million in 2024. The incremental growth indicates ongoing investments or capital expenditures in this category, contributing to the enhancement of the fixed asset base.
- Machinery and Equipment
- Machinery and equipment values fluctuate slightly with a minor decrease initially, from $16,060 million in 2020 to $15,692 million in 2021, followed by a recovery and increase reaching $16,660 million in 2024. This pattern suggests periods of asset disposals or write-downs offset by subsequent acquisitions or capital investments.
- Construction in Progress
- Construction in progress shows a consistent upward trajectory, increasing from $1,340 million in 2020 to $2,339 million in 2024. This steady growth reflects ongoing investment in projects not yet completed, indicating future additions to property, plant, and equipment.
- Gross Property, Plant and Equipment
- Total gross property, plant, and equipment demonstrates an overall increasing trend from $32,327 million in 2020 to $34,337 million in 2024. Despite some fluctuations in underlying asset categories, the net effect is growth in the total asset base.
- Accumulated Depreciation
- Accumulated depreciation consistently increases in magnitude (becomes more negative), from -$20,507 million in 2020 to -$22,925 million in 2024. This consistent rise reflects the systematic allocation of cost over the useful lives of assets, indicating aging of the fixed asset portfolio.
- Property, Plant and Equipment, Net
- The net property, plant, and equipment decreases from $11,820 million in 2020 to $10,550 million in 2022, then shows a modest recovery to $11,412 million by 2024. The decline followed by partial recovery suggests significant depreciation and possible disposals initially, with renewed investments and asset additions supporting net asset value stabilization and growth in later years.
Asset Age Ratios (Summary)
Boeing Co., asset age ratios
Based on: 10-K (reporting date: 2024-12-31), 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).
- Average Age Ratio
- The average age ratio exhibits a consistent upward trend from 64.46% in 2020 to a peak of 68.39% in 2023, indicating an increase in the aging of property, plant, and equipment assets over this period. This ratio slightly decreases to 67.46% in 2024, suggesting a modest reduction in the relative age of these assets at the end of the analyzed timeframe.
- Estimated Total Useful Life
- The estimated total useful life of the assets shows a progressive increase from 21 years in both 2020 and 2021 to 25 years in 2024. This extension reflects a reassessment or improvement in the expected durability or utility of the equipment, possibly due to maintenance, upgrades, or changes in estimation methodologies.
- Estimated Age, Time Elapsed Since Purchase
- The estimated age of the assets steadily rises from 13 years in 2020 to 17 years by 2023 and remains constant in 2024. This consistent increase aligns with the passage of time and indicates that the fleet of assets is aging as expected over the period analyzed.
- Estimated Remaining Life
- The estimated remaining life remains steady at 7 years from 2020 through 2022 before increasing to 8 years in 2023 and maintaining at that level in 2024. This suggests an improved outlook on the remaining usability of the assets, potentially due to the extended total useful life estimations or refurbishment efforts.
Average Age
Based on: 10-K (reporting date: 2024-12-31), 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).
2024 Calculations
1 Average age = 100 × Accumulated depreciation ÷ (Gross property, plant and equipment – Land)
= 100 × ÷ ( – ) =
- Accumulated Depreciation
- The accumulated depreciation steadily increased each year from US$ 20,507 million in 2020 to US$ 22,925 million in 2024. This reflects a consistent recognition of depreciation expense over the period, indicating ongoing usage and aging of the property, plant, and equipment assets.
- Gross Property, Plant and Equipment
- The gross value of property, plant, and equipment exhibited a declining trend from 2020 (US$ 32,327 million) to 2021 (US$ 31,456 million), followed by a gradual recovery and increase through 2024, reaching US$ 34,337 million. This pattern suggests an initial reduction in asset additions or disposals during 2021, with renewed investment or asset acquisition in subsequent years.
- Land
- The recorded value of land decreased notably from US$ 512 million in 2020 to US$ 353 million in 2024, with most of the decline occurring between 2020 and 2021, after which values remained relatively stable. This decline may indicate land disposals or revaluations over the period.
- Average Age Ratio
- The average age ratio of the property, plant, and equipment showed a rising trend from 64.46% in 2020, peaking at 68.39% in 2023, before slightly declining to 67.46% in 2024. The increase suggests that the asset base has been aging, with newer acquisitions insufficient to offset the aging of existing assets until a minor improvement was observed in the final year.
Estimated Total Useful Life
Based on: 10-K (reporting date: 2024-12-31), 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).
2024 Calculations
1 Estimated total useful life = (Gross property, plant and equipment – Land) ÷ Depreciation expense
= ( – ) ÷ =
- Gross Property, Plant, and Equipment
- The gross value of property, plant, and equipment experienced a slight decline from 2020 to 2021, decreasing from $32,327 million to $31,456 million. This was followed by a steady upward trend over the next three years, reaching $34,337 million by the end of 2024. This suggests ongoing investments or acquisitions of assets after a minor downturn in 2021.
- Land
- The value of land showed a notable decrease from $512 million in 2020 to $377 million by 2021, with the amount remaining relatively stable through 2023 before a further decline to $353 million in 2024. The initial drop may reflect asset disposals or revaluation, while the subsequent stability indicates no significant changes in land holdings until the slight reduction in the last year.
- Depreciation Expense
- Depreciation expense demonstrated a continuous decrease from $1,533 million in 2020 to $1,328 million in 2023, with a slight increase to $1,349 million in 2024. The overall downward trend could be attributed to aging assets reaching the end of their depreciable lives or changes in depreciation methods, while the minor rebound in 2024 suggests adjustments in asset valuation or the addition of new depreciable assets.
- Estimated Total Useful Life
- The estimated total useful life of property, plant, and equipment has been progressively extended from 21 years in 2020 and 2021 to 25 years by 2024. This lengthening indicates a reassessment of asset longevity, possibly reflecting improved maintenance, technological upgrades, or changes in usage patterns that enhance asset durability.
Estimated Age, Time Elapsed since Purchase
Based on: 10-K (reporting date: 2024-12-31), 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).
2024 Calculations
1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= ÷ =
- Accumulated Depreciation
- The accumulated depreciation shows a consistent upward trend from 20,507 million US dollars in 2020 to 22,925 million US dollars in 2024. The increase is steady each year, reflecting ongoing depreciation of the property, plant, and equipment assets over the period.
- Depreciation Expense
- The depreciation expense displays a decreasing trend over the years. It decreased from 1,533 million US dollars in 2020 to 1,349 million US dollars in 2024, with a slight uptick noted in the final year. This decline suggests a reduction in the rate of depreciation or possibly changes in asset acquisitions or disposals.
- Time Elapsed Since Purchase
- The time elapsed since purchase of assets increased from 13 years in 2020 to 17 years by 2024. This indicates an aging asset base, which aligns with the increasing accumulated depreciation and could explain the decreasing depreciation expense as assets near the end of their useful lives.
Estimated Remaining Life
Based on: 10-K (reporting date: 2024-12-31), 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).
2024 Calculations
1 Estimated remaining life = (Property, plant and equipment, net – Land) ÷ Depreciation expense
= ( – ) ÷ =
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment shows an overall declining trend from 2020 through 2023, decreasing from 11,820 million USD in 2020 to a low of 10,550 million USD in 2022. In 2023, the value stabilizes slightly at 10,661 million USD before exhibiting a noticeable increase to 11,412 million USD in 2024. This suggests a period of depreciation or asset sales followed by some reinvestment or asset acquisition in the most recent year.
- Land
- The land value consistently declined over the five-year period, falling from 512 million USD in 2020 to 353 million USD in 2024. This steady reduction indicates either disposals of land assets or revaluation downward over time.
- Depreciation Expense
- Depreciation expense on property, plant, and equipment decreased progressively from 1,533 million USD in 2020 to 1,328 million USD in 2023. However, a slight increase to 1,349 million USD occurred in 2024. The initial decline could be related to lower asset bases or extended asset life, while the increase in 2024 may reflect new asset additions or adjustments.
- Estimated Remaining Life
- The estimated remaining life of the assets remained steady at 7 years from 2020 to 2022, then increased to 8 years in 2023 and sustained at that level in 2024. This elongation of asset life could be due to asset revaluation, improvements, or changes in depreciation methodology.