Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Boeing Co. (NYSE:BA)

Analysis of Property, Plant and Equipment

Advanced level


Property, Plant and Equipment Disclosure

Boeing Co., balance sheet: property, plant and equipment

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Land 527  546  530  535  536 
Buildings and land improvements 14,288  14,109  14,125  13,796  12,397 
Machinery and equipment 15,723  15,221  14,577  13,569  13,187 
Construction in progress 1,306  1,337  1,081  1,790  2,242 
Gross property, plant and equipment 31,844  31,213  30,313  29,690  28,362 
Accumulated depreciation (19,342) (18,568) (17,641) (16,883) (16,286)
Property, plant and equipment, net 12,502  12,645  12,672  12,807  12,076 

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-10).

Item Description The company
Gross property, plant and equipment Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Boeing Co.’s gross property, plant and equipment increased from 2017 to 2018 and from 2018 to 2019.
Property, plant and equipment, net Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Boeing Co.’s property, plant and equipment, net decreased from 2017 to 2018 and from 2018 to 2019.

Asset Age Ratios (Summary)

Boeing Co., asset age ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Average age ratio 61.76% 60.55% 59.23% 57.91% 58.53%
Estimated total useful life (years) 20 20 19 21 21
Estimated age, time elapsed since purchase (years) 12 12 11 12 12
Estimated remaining life (years) 8 8 8 9 9

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-10).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient. Boeing Co.’s average age ratio of depreciable property, plant and equipment deteriorated from 2017 to 2018 and from 2018 to 2019.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. Boeing Co.’s estimated total useful life of depreciable property, plant and equipment increased from 2017 to 2018 and from 2018 to 2019.
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Boeing Co.’s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2017 to 2018 and from 2018 to 2019.
Estimated remaining life Boeing Co.’s estimated remaining life of depreciable property, plant and equipment decreased from 2017 to 2018 and from 2018 to 2019.

Average Age

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation 19,342  18,568  17,641  16,883  16,286 
Gross property, plant and equipment 31,844  31,213  30,313  29,690  28,362 
Land 527  546  530  535  536 
Asset Age Ratio
Average age1 61.76% 60.55% 59.23% 57.91% 58.53%

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-10).

2019 Calculations

1 Average age = 100 × Accumulated depreciation ÷ (Gross property, plant and equipment – Land)
= 100 × 19,342 ÷ (31,844527) = 61.76%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient. Boeing Co.’s average age ratio of depreciable property, plant and equipment deteriorated from 2017 to 2018 and from 2018 to 2019.

Estimated Total Useful Life

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Gross property, plant and equipment 31,844  31,213  30,313  29,690  28,362 
Land 527  546  530  535  536 
Depreciation expense 1,567  1,556  1,548  1,418  1,357 
Asset Age Ratio (Years)
Estimated total useful life1 20 20 19 21 21

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-10).

2019 Calculations

1 Estimated total useful life = (Gross property, plant and equipment – Land) ÷ Depreciation expense
= (31,844527) ÷ 1,567 = 20

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. Boeing Co.’s estimated total useful life of depreciable property, plant and equipment increased from 2017 to 2018 and from 2018 to 2019.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation 19,342  18,568  17,641  16,883  16,286 
Depreciation expense 1,567  1,556  1,548  1,418  1,357 
Asset Age Ratio (Years)
Time elapsed since purchase1 12 12 11 12 12

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-10).

2019 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 19,342 ÷ 1,567 = 12

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Boeing Co.’s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2017 to 2018 and from 2018 to 2019.

Estimated Remaining Life

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Property, plant and equipment, net 12,502  12,645  12,672  12,807  12,076 
Land 527  546  530  535  536 
Depreciation expense 1,567  1,556  1,548  1,418  1,357 
Asset Age Ratio (Years)
Estimated remaining life1 8 8 8 9 9

Based on: 10-K (filing date: 2020-01-31), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-12), 10-K (filing date: 2017-02-08), 10-K (filing date: 2016-02-10).

2019 Calculations

1 Estimated remaining life = (Property, plant and equipment, net – Land) ÷ Depreciation expense
= (12,502527) ÷ 1,567 = 8

Asset age ratio Description The company
Estimated remaining life Boeing Co.’s estimated remaining life of depreciable property, plant and equipment decreased from 2017 to 2018 and from 2018 to 2019.