Analysis of Property, Plant and Equipment
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Price to FCFE (P/FCFE)
- Operating Profit Margin since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
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Property, Plant and Equipment Disclosure
Boston Scientific Corp., balance sheet: property, plant and equipment
US$ in millions
Based on: 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), 10-K (reporting date: 2018-12-31).
- Land
- The value of land showed a generally increasing trend from $97 million in 2018 to $137 million in 2022. There was a slight decline in 2020, decreasing from $117 million in 2019 to $104 million, followed by recovery and growth in subsequent years, reaching the highest value in 2022.
- Buildings and Improvements
- This category demonstrated consistent growth over the period, increasing from $1,100 million in 2018 to $1,695 million in 2022. The increments were steady year over year, with the most notable increase between 2021 and 2022, indicating significant investment or revaluation during the last year.
- Equipment, Furniture and Fixtures
- The value of equipment, furniture, and fixtures rose gradually from $3,224 million in 2018 to a peak of $3,476 million in 2021. However, in 2022, there was a noticeable decline to $3,298 million, suggesting possible disposals, write-downs, or reduced capital expenditure in this category.
- Capital in Progress
- Capital in progress showed a steady increase from $319 million in 2018 to $605 million in 2021, reflecting ongoing investments in assets under construction or development. There was a small decrease to $598 million in 2022, indicating either completion of some projects or a slight slowdown in new capital commitments.
- Property, Plant and Equipment, Gross
- The gross property, plant, and equipment balance increased consistently from $4,740 million in 2018 to $5,728 million in 2022. This steady growth reflects continued capital investments across various asset categories despite some fluctuations within individual items.
- Accumulated Depreciation
- Accumulated depreciation showed a gradual increase in absolute terms (more negative) over the years, moving from -$2,958 million in 2018 to -$3,282 million in 2022. The slowing rate of increase in 2021 and 2022 may suggest changes in asset depreciation schedules, asset disposals, or other accounting treatments affecting depreciation expense recognition.
- Property, Plant and Equipment, Net
- The net property, plant, and equipment value increased steadily from $1,782 million in 2018 to $2,446 million in 2022. The growth reflects the overall rise in gross assets outpacing accumulated depreciation. This trend indicates strengthening of the net asset base, which could support operational capacity and potential growth.
Asset Age Ratios (Summary)
Boston Scientific Corp., asset age ratios
Based on: 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), 10-K (reporting date: 2018-12-31).
- Average Age Ratio
- The average age ratio of property, plant, and equipment shows a gradual decline over the five-year period, decreasing from 63.71% in 2018 to 58.7% in 2022. This trend suggests a relatively younger asset base or the addition of newer assets over time, indicating ongoing investment or replacement activities within the company's fixed assets.
- Estimated Total Useful Life
- The estimated total useful life of the assets remained stable at 16 years from 2018 through 2020, followed by a slight decrease to 15 years in 2021, and then an increase to 17 years in 2022. This fluctuation may reflect adjustments in asset lifespan expectations, possibly due to changes in technology, maintenance practices, or asset composition.
- Estimated Age, Time Elapsed Since Purchase
- The estimated age of the assets consistently hovers around 9 to 10 years during the period. Maintaining an average estimated age of about 10 years indicates a moderately aged asset portfolio without significant shifts in the timing of asset acquisition.
- Estimated Remaining Life
- The remaining useful life is relatively stable, noted as 6 years for most years, with a slight increase to 7 years in 2022. This suggests that despite the aging asset base, the company expects the assets to retain productive life for a moderately extended period, possibly reflecting improvements or recalibrations in asset longevity assessments.
Average Age
Based on: 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), 10-K (reporting date: 2018-12-31).
2022 Calculations
1 Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, gross – Land)
= 100 × ÷ ( – ) =
- Accumulated Depreciation
- The accumulated depreciation increased steadily from US$2,958 million in 2018 to US$3,282 million in 2022. The consistent increment indicates ongoing wear and utilization of property, plant, and equipment (PP&E) assets over the years, reflecting continued asset consumption and aging.
- Property, Plant and Equipment, Gross
- The gross value of PP&E showed a clear upward trend, rising from US$4,740 million in 2018 to US$5,728 million in 2022. This growth suggests ongoing capital investments and additions to the asset base, expanding the company's operational capacity or modernizing existing facilities.
- Land
- The value of land assets experienced modest fluctuations, increasing from US$97 million in 2018 to US$137 million in 2022. The increase is not strictly linear but demonstrates an overall rise, possibly due to acquisitions or revaluation of land holdings.
- Average Age Ratio
- The average age ratio of the assets, representing the proportion of accumulated depreciation to gross PP&E, showed a declining trend from 63.71% in 2018 to 58.7% in 2022. This decrease suggests that the asset base is becoming relatively newer over time, reflecting that recent asset acquisitions or replacements have been significant enough to lower the overall average asset age.
Estimated Total Useful Life
Based on: 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), 10-K (reporting date: 2018-12-31).
2022 Calculations
1 Estimated total useful life = (Property, plant and equipment, gross – Land) ÷ Depreciation expense
= ( – ) ÷ =
- Property, plant and equipment, gross
- The gross value of property, plant, and equipment demonstrated a steady upward trend over the five-year period. Starting at 4,740 million US dollars at the end of 2018, it increased consistently each year, reaching 5,728 million US dollars by the end of 2022. This reflects ongoing investments or revaluations contributing to the asset base.
- Land
- The value of land showed fluctuations within the reported period. It rose from 97 million US dollars in 2018 to a peak of 117 million in 2019, then declined to 104 million by the end of 2020. Subsequently, a gradual increase followed, reaching 137 million by the end of 2022. Overall, the trend suggests some variability but ends with a notable increase.
- Depreciation expense
- Depreciation expense increased steadily from 296 million US dollars in 2018 to a maximum of 352 million in 2021. In 2022, it experienced a decline to 333 million, which may indicate a change in asset usage, asset base composition, or depreciation policies.
- Estimated total useful life
- The estimated useful life of property, plant, and equipment remained largely consistent around 16 years from 2018 to 2020. A slight decrease to 15 years occurred in 2021, followed by an increase to 17 years in 2022. These changes suggest adjustments in asset lifespan assumptions potentially affecting depreciation expense and asset valuation.
Estimated Age, Time Elapsed since Purchase
Based on: 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), 10-K (reporting date: 2018-12-31).
2022 Calculations
1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= ÷ =
- Accumulated Depreciation
- The accumulated depreciation increased steadily from US$2,958 million in 2018 to US$3,282 million in 2022. The increases each year show a consistent accumulation of depreciation on property, plant, and equipment, with a gradual slowing of growth observed between 2021 and 2022.
- Depreciation Expense
- The depreciation expense showed an overall upward trend from 2018 through 2021, rising from US$296 million to US$352 million. However, in 2022, there was a slight decline to US$333 million, indicating a potential change in depreciation policies, asset base, or asset utilization during that period.
- Time Elapsed Since Purchase
- The average time elapsed since purchase remained relatively stable at approximately 10 years for most periods, except in 2021 where it decreased marginally to 9 years. This suggests that the company’s property, plant, and equipment have an average useful life close to a decade, and asset replacement or acquisition timing may have slightly shifted in 2021.
Estimated Remaining Life
Based on: 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), 10-K (reporting date: 2018-12-31).
2022 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 exhibited a consistent upward trend from 2018 to 2022. Starting at 1,782 million USD at the end of 2018, it increased steadily each year, reaching 2,446 million USD by the end of 2022. This reflects a cumulative growth of approximately 37% over the five-year period, indicating ongoing investments or acquisitions in fixed assets.
- Land
- The value attributed to land also showed a rising trend, albeit with some fluctuations. From 97 million USD in 2018, the value increased to 117 million USD in 2019 but then declined to 104 million USD in 2020. Thereafter, it rose again, reaching 137 million USD in 2022. The overall increase suggests acquisitions or revaluations impacting land assets, with a net growth of about 41% from 2018 to 2022.
- Depreciation expense
- Depreciation expense demonstrated a gradual increase from 296 million USD in 2018 to a peak of 352 million USD in 2021, indicating a growing charge related to asset usage or shorter asset lives. However, in 2022, there was a slight decrease to 333 million USD. This fluctuation may reflect changes in depreciation methods, asset disposals, or revisions in useful lives.
- Estimated remaining life
- The estimated remaining life of property, plant, and equipment remained fairly stable at six years from 2018 through 2021. In 2022, this figure increased marginally to seven years, which could suggest the addition of newer assets with longer useful lives or revisions to asset life estimates.
- Overall insights
- The data presents a picture of steady growth in net property, plant, and equipment, supported by increases in asset values such as land. The depreciation expense trends are generally reflective of asset base expansion, with a slight decline in the latest year possibly indicating changes in asset composition or accounting estimates. The increase in estimated remaining life in the most recent period could have implications for future depreciation expenses and financial planning.