Boeing Co. (NYSE:BA)

Over the five-year period, a consistent expansion of gross property, plant, and equipment is observed. This growth is primarily driven by increases in buildings and land improvements, as well as machinery and equipment, with a particularly notable rise in construction in progress towards the end of the period. Simultaneously, accumulated depreciation has steadily increased, though at a slower rate than the growth in gross assets. Consequently, the net property, plant, and equipment demonstrates a fluctuating pattern, ultimately exhibiting significant growth in the later years.

Land

The value of land remained relatively stable between 2021 and 2023, fluctuating around US$377 million. A decrease to US$353 million is noted in 2024, followed by a substantial increase to US$443 million in 2025. This final increase suggests a significant land acquisition or revaluation during that year.

Buildings and Land Improvements

Buildings and land improvements demonstrate a consistent upward trend throughout the period, increasing from US$14,152 million in 2021 to US$16,565 million in 2025. The annual increases are relatively steady, indicating ongoing investment in these assets.

Machinery and Equipment

Machinery and equipment also exhibit a consistent upward trend, growing from US$15,692 million in 2021 to US$18,335 million in 2025. The rate of increase appears to accelerate in the later years, suggesting increased investment in modernization or expansion of production capabilities.

Construction in Progress

Construction in progress shows the most significant proportional increase over the period, rising from US$1,235 million in 2021 to US$3,631 million in 2025. This substantial growth indicates a considerable amount of ongoing capital projects, potentially representing future expansion or replacement of existing assets.

Accumulated Depreciation

Accumulated depreciation increased steadily from -US$20,538 million in 2021 to -US$23,613 million in 2025. While consistently increasing, the rate of increase is less pronounced than the growth in gross property, plant, and equipment, contributing to the overall increase in net assets.

Net Property, Plant, and Equipment

Net property, plant, and equipment experienced a slight decrease between 2021 and 2022, falling from US$10,918 million to US$10,550 million. It then showed modest growth until 2024, reaching US$11,412 million. A substantial increase is observed in 2025, with net assets reaching US$15,361 million. This final increase is attributable to the combined effect of increased gross assets and a relatively slower growth in accumulated depreciation.

The overall trend suggests a period of sustained investment in property, plant, and equipment, with a notable acceleration in capital expenditure and construction activity towards the end of the analyzed period. The increasing net book value in the later years indicates that these investments are contributing to a growing asset base.

An examination of the asset age ratios reveals a generally aging asset base over the period from 2021 to 2025, followed by a notable shift in the final year. The average age ratio increased steadily from 66.08% in 2021 to 68.39% in 2023, before decreasing to 61.28% in 2025. This movement is coupled with changes in estimates of useful life and asset age.

Average Age Ratio

The average age ratio demonstrates an initial increase, peaking in 2023, and then a significant decline in 2025. This suggests a potential rejuvenation of the asset base in the latter period, possibly through new acquisitions or re-evaluations of asset lives. The initial increase indicates that, on average, assets were becoming older relative to their useful lives.

Estimated Total Useful Life

The estimated total useful life of the assets has been consistently extended over the five-year period, increasing from 21 years in 2021 to 27 years in 2025. This lengthening of useful life could be due to improved maintenance practices, technological advancements extending asset functionality, or a change in accounting policies regarding asset depreciation. It is important to note that extending useful life reduces annual depreciation expense.

Estimated Age & Remaining Life

The estimated age, representing the time elapsed since purchase, increased from 14 years in 2021 to 17 years in 2025. Simultaneously, the estimated remaining life increased from 7 years in 2021 to 11 years in 2025. The increase in remaining life, despite the increase in age, is consistent with the lengthening of the estimated total useful life. This suggests that assets are being maintained in a condition that allows for continued operation for a longer duration than previously anticipated.

The combined effect of these trends suggests a potential shift in asset management strategy. While the asset base initially aged, the extension of useful lives and the subsequent decrease in the average age ratio in 2025 indicate a possible focus on asset preservation and potentially, significant capital investment in newer assets during that year. Further investigation into capital expenditure patterns would be beneficial to confirm this hypothesis.

An examination of the financial information reveals trends in property, plant, and equipment, specifically concerning accumulated depreciation, gross values, land holdings, and the average age ratio. Accumulated depreciation consistently increased over the five-year period, rising from US$20,538 million in 2021 to US$23,613 million in 2025. Simultaneously, gross property, plant, and equipment also exhibited an upward trajectory, growing from US$31,456 million in 2021 to US$38,974 million in 2025. Land values remained relatively stable between 2021 and 2023, with a slight decrease in 2024, followed by a notable increase in 2025.

Accumulated Depreciation & Gross PP&E

The parallel increases in accumulated depreciation and gross property, plant, and equipment suggest ongoing investment in new assets alongside the natural depreciation of existing ones. The rate of increase in gross PP&E accelerated between 2023 and 2025, potentially indicating a period of more substantial capital expenditure. The consistent rise in accumulated depreciation is expected as assets age and are utilized.

Land Holdings

Land values demonstrated stability for the initial three years, fluctuating minimally around US$377 million. A decrease to US$353 million in 2024 was followed by a significant increase to US$443 million in 2025. This final year increase could be attributed to land acquisitions or revaluation of existing land holdings.

Average Age Ratio

The average age ratio, expressed as a percentage, initially increased from 66.08% in 2021 to 68.39% in 2023, indicating a gradual aging of the asset base. A slight decrease to 67.46% occurred in 2024, and a more pronounced decrease to 61.28% was observed in 2025. This decline in the average age ratio in the latter two years suggests that recent asset acquisitions or disposals have lowered the overall average age of the company’s property, plant, and equipment. The substantial increase in gross PP&E in 2024 and 2025 likely contributed to this reduction.

Overall, the information suggests a pattern of continued investment in property, plant, and equipment, coupled with a recent trend towards a younger asset base as evidenced by the decreasing average age ratio. The increase in land value in 2025 warrants further investigation to understand the underlying reasons for this change.

Over the five-year period examined, gross property, plant, and equipment exhibited a consistent upward trend, increasing from US$31,456 million in 2021 to US$38,974 million in 2025. Land holdings experienced fluctuations, remaining relatively stable before increasing notably in 2025. Depreciation expense demonstrated a generally decreasing trend from 2021 to 2023, followed by slight increases in 2024 and 2025. A significant and consistent increase is observed in the estimated total useful life of the assets.

Gross Property, Plant, and Equipment

The value of gross property, plant, and equipment increased each year, with the most substantial growth occurring between 2024 and 2025 (US$4,637 million). This suggests ongoing investment in fixed assets, potentially related to expansion or modernization efforts.

Land

Land values remained relatively constant between 2021 and 2024, with a value of approximately US$370 million. A considerable increase to US$443 million was noted in 2025, potentially indicating a significant land acquisition during that period.

Depreciation Expense

Depreciation expense decreased from US$1,488 million in 2021 to US$1,328 million in 2023, before rising to US$1,413 million in 2025. The initial decrease could be attributed to assets reaching the end of their useful lives or a shift in the asset base. The subsequent increase may reflect the addition of new depreciable assets.

Estimated Total Useful Life

The estimated total useful life of the assets increased steadily from 21 years in 2021 to 27 years in 2025. This represents a 28.6% increase over the period. This lengthening of useful life estimates could indicate improvements in asset maintenance, technological advancements extending asset functionality, or a change in accounting policies regarding asset lives. The impact of this change should be considered in relation to depreciation expense and the carrying value of assets.

Analysis reveals a consistent increase in accumulated depreciation over the five-year period, while depreciation expense exhibits a more fluctuating pattern. The reported time elapsed since the initial purchase of the assets demonstrates a stabilization in the asset age profile towards the end of the observed period.

Accumulated Depreciation

Accumulated depreciation increased steadily from US$20,538 million in 2021 to US$23,613 million in 2025. This represents a total increase of approximately US$3,075 million, or roughly 15%, over the five years. The rate of increase appears relatively consistent year-over-year, suggesting a predictable depreciation process across the asset base.

Depreciation Expense

Depreciation expense decreased from US$1,488 million in 2021 to US$1,328 million in 2023, a reduction of approximately 10.7%. However, it then increased to US$1,349 million in 2024 and further to US$1,413 million in 2025. This fluctuation may indicate changes in the composition of the asset base, such as the disposal of fully depreciated assets or the addition of new assets with different depreciation schedules. The 2025 value is only slightly below the 2021 level.

Time Elapsed Since Purchase

The reported time elapsed since purchase increased from 14 years in 2021 to 15 years in 2022, and then to 17 years in 2023. Critically, it remained constant at 17 years for both 2024 and 2025. This suggests that significant asset purchases occurred around 17 years prior to 2023, and no substantial new asset additions impacting this average age were recorded in the subsequent two years. The stabilization in reported age implies a period of limited major capital expenditure related to property, plant, and equipment.

The combination of increasing accumulated depreciation and fluctuating depreciation expense, coupled with a stabilized asset age, warrants further investigation into the company’s capital expenditure strategy and asset management practices. The slight increase in depreciation expense in the later years, despite the stable asset age, could be due to a shift towards more accelerated depreciation methods or changes in estimated useful lives.

The net value of property, plant, and equipment exhibited a generally increasing trend over the five-year period, despite an initial decrease. Depreciation expense remained relatively stable, while the estimated remaining life of these assets increased significantly.

Net Property, Plant, and Equipment

The net book value of property, plant, and equipment decreased from US$10,918 million in 2021 to US$10,550 million in 2022. However, subsequent years show growth, reaching US$11,412 million in 2024 and a substantial increase to US$15,361 million in 2025. This suggests potential acquisitions, significant capital improvements, or a slowdown in depreciation outpacing any disposals.

Land

The value of land remained relatively consistent between 2021 and 2023, fluctuating around US$377 million. A decrease to US$353 million was observed in 2024, followed by an increase to US$443 million in 2025. This could indicate land purchases or revaluations.

Depreciation Expense

Depreciation expense experienced a slight decline from US$1,488 million in 2021 to US$1,328 million in 2023. It then increased modestly to US$1,349 million in 2024 and further to US$1,413 million in 2025. The relatively stable depreciation expense, coupled with the increasing net book value, suggests that new asset additions are exceeding the impact of depreciation.

Estimated Remaining Life

The estimated remaining life of the property, plant, and equipment increased from 7 years in 2021 and 2022 to 8 years in 2023 and 2024, and then to 11 years in 2025. This substantial increase could be due to several factors, including a shift in the asset base towards newer, longer-lived assets, a reassessment of asset useful lives, or significant refurbishment activities extending the operational lifespan of existing assets. The lengthening of the estimated remaining life will reduce annual depreciation expense, all else being equal.

The combination of increasing net property, plant, and equipment values, stable depreciation expense, and a lengthening estimated remaining life suggests a significant investment in, and potential extension of the useful life of, the asset base.