Analysis of Property, Plant and Equipment
Property, Plant and Equipment Disclosure
Bristol-Myers Squibb Co., balance sheet: property, plant and equipment
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
Over the five-year period, significant changes are observed in the composition and net value of property, plant, and equipment. Land holdings experienced a slight, consistent decrease, while investments in buildings, machinery, equipment, and construction in progress demonstrate a generally increasing trend.
- Land
- The value of land decreased incrementally from US$169 million in 2021 to US$157 million in 2025. This represents a cumulative reduction of approximately 7.1% over the period, suggesting no significant land acquisitions or disposals.
- Buildings
- Buildings exhibited a substantial increase in value, rising from US$5,897 million in 2021 to US$7,270 million in 2025. This represents a growth of approximately 23.2%. The most significant increase occurred between 2023 and 2025, indicating potentially large-scale building investments or revaluations during that timeframe.
- Machinery, Equipment and Fixtures
- Machinery, equipment, and fixtures also increased in value, moving from US$3,252 million in 2021 to US$3,790 million in 2025. This represents a growth of approximately 16.5%. Growth was most pronounced between 2022 and 2023, and then slowed between 2024 and 2025.
- Construction in Progress
- Construction in progress demonstrated a consistent upward trend, increasing from US$764 million in 2021 to US$1,619 million in 2025. This represents an increase of over 111.7%. The accelerating growth in recent years suggests ongoing and expanding capital projects.
- Gross Property, Plant and Equipment
- The aggregate value of gross property, plant, and equipment increased from US$10,082 million in 2021 to US$12,836 million in 2025, representing a total increase of 27.3%. This growth is largely attributable to the increases in buildings and construction in progress.
- Accumulated Depreciation
- Accumulated depreciation increased steadily from US$4,033 million in 2021 to US$5,293 million in 2025. This represents a growth of approximately 31.3%. The consistent increase is expected as assets age and are utilized.
- Property, Plant and Equipment, Net
- Net property, plant, and equipment increased from US$6,049 million in 2021 to US$7,543 million in 2025, representing a growth of approximately 24.7%. The rate of increase in net PP&E slowed in the final year of the period, potentially due to increased depreciation expense associated with the larger asset base.
Overall, the figures indicate a pattern of investment in long-term assets, particularly buildings and ongoing construction projects. The consistent increase in accumulated depreciation is a natural consequence of asset utilization and age.
Asset Age Ratios (Summary)
Bristol-Myers Squibb Co., asset age ratios
Based on: 10-K (reporting date: 2025-12-31), 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).
The asset age ratios indicate a generally stable profile of property, plant, and equipment over the five-year period. The average age ratio fluctuates modestly, while estimates of useful life and remaining life provide further context to the age of these assets.
- Average Age Ratio
- The average age ratio remained relatively consistent between 2021 and 2025, ranging from 40.60% to 42.55%. A slight increase is observed from 40.60% in 2022 to 42.55% in 2023, followed by a decrease to 41.50% in 2024 and a further increase to 41.75% in 2025. This suggests a gradual aging of the asset base, but within a narrow range.
- Estimated Total Useful Life
- The estimated total useful life of the assets remained stable at 18 years between 2021 and 2024. An increase to 20 years is noted in 2025. This could indicate a reassessment of asset longevity, potentially due to improved maintenance practices or the acquisition of more durable assets.
- Estimated Age and Remaining Life
- The estimated age, representing the time elapsed since purchase, increased steadily from 7 years in 2021 to 9 years in 2025. Correspondingly, the estimated remaining life remained relatively stable at 11 years between 2021 and 2024, increasing to 12 years in 2025. The consistency in remaining life, despite the increasing age, aligns with the increase in estimated total useful life observed in 2025.
Overall, the asset age ratios suggest a mature asset base with a predictable aging pattern. The increase in estimated total useful life in the most recent year warrants further investigation to understand the underlying factors contributing to this change.
Average Age
Based on: 10-K (reporting date: 2025-12-31), 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).
2025 Calculations
1 Average age = 100 × Accumulated depreciation ÷ (Gross property, plant and equipment – Land)
= 100 × 5,293 ÷ (12,836 – 157) = 41.75%
An examination of the financial information reveals trends in property, plant, and equipment over a five-year period. Gross property, plant, and equipment consistently increased from 2021 to 2025, while accumulated depreciation also rose throughout the period. The value of land experienced a slight, gradual decrease.
- Gross Property, Plant, and Equipment
- The gross value of property, plant, and equipment demonstrated an upward trajectory, increasing from US$10,082 million in 2021 to US$12,836 million in 2025. This represents a cumulative increase of approximately 27.3% over the five-year timeframe. The largest single-year increase occurred between 2022 and 2023, with an addition of US$1,030 million.
- Accumulated Depreciation
- Accumulated depreciation exhibited a consistent increase each year, moving from US$4,033 million in 2021 to US$5,293 million in 2025. This indicates a continuous recognition of the cost of assets over their useful lives. The rate of increase in accumulated depreciation appears to be accelerating, with larger increases observed in later years.
- Land
- The reported value of land decreased modestly from US$169 million in 2021 to US$157 million in 2025. These decreases were small and relatively consistent year-over-year, suggesting potential adjustments or reclassifications rather than significant disposals.
- Average Age Ratio
- The average age ratio remained relatively stable, fluctuating between 40.60% and 42.55% during the observed period. It began at 40.68% in 2021, peaked at 42.55% in 2023, and then slightly decreased to 41.75% in 2025. This suggests that, on average, the company’s property, plant, and equipment are being replaced or upgraded at a rate that maintains a consistent age profile. The slight increase in 2023, followed by a small decrease, may warrant further investigation to determine if it signals a shift in capital expenditure strategy.
Overall, the financial information suggests a pattern of investment in property, plant, and equipment alongside the ongoing depreciation of existing assets. The consistent average age ratio indicates a relatively stable asset base in terms of age composition.
Estimated Total Useful Life
Based on: 10-K (reporting date: 2025-12-31), 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).
2025 Calculations
1 Estimated total useful life = (Gross property, plant and equipment – Land) ÷ Depreciation expense
= (12,836 – 157) ÷ 621 = 20
Gross property, plant, and equipment (PP&E) exhibited a consistent upward trend over the five-year period, increasing from US$10,082 million in 2021 to US$12,836 million in 2025. Land holdings experienced a slight, gradual decrease during this time, moving from US$169 million to US$157 million. Depreciation expense also increased year-over-year, rising from US$559 million in 2021 to US$651 million in 2024, before decreasing slightly to US$621 million in 2025. A notable shift is observed in the estimated total useful life of the PP&E.
- Gross PP&E Trend
- The consistent growth in gross PP&E suggests ongoing investment in property, plant, and equipment. This could indicate expansion, modernization, or replacement of existing assets. The rate of increase appears to be accelerating, particularly between 2023 and 2025.
- Land Holdings
- The minor decline in land values is not substantial and may be attributable to reclassifications, sales of small parcels, or adjustments in valuation. It does not appear to represent a significant strategic shift.
- Depreciation Expense
- The increase in depreciation expense generally aligns with the growth in gross PP&E, as a larger asset base typically results in higher depreciation charges. The slight decrease in depreciation expense in 2025, despite continued growth in gross PP&E, warrants further investigation. It could be due to changes in depreciation methods, asset mix, or the impact of asset disposals.
- Estimated Useful Life
- The estimated total useful life of the PP&E initially decreased from 18 years in 2021 to 17 years in 2022, then stabilized at 18 years for 2023 and 2024. A significant increase to 20 years is then observed in 2025. This lengthening of the estimated useful life in the most recent year could indicate a change in the composition of the asset base towards assets with longer lifespans, improvements in maintenance practices extending asset usability, or a revision of depreciation policies. This change will likely result in lower depreciation expense in future periods, all else being equal.
Estimated Age, Time Elapsed since Purchase
Based on: 10-K (reporting date: 2025-12-31), 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).
2025 Calculations
1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 5,293 ÷ 621 = 9
Analysis of the presented financial information reveals a consistent pattern of increasing accumulated depreciation and depreciation expense over the five-year period. Simultaneously, the reported time elapsed since purchase of the underlying assets also demonstrates a steady increase.
- Accumulated Depreciation
- Accumulated depreciation increased from US$4,033 million in 2021 to US$5,293 million in 2025. This represents a cumulative increase of approximately 31.2% over the period. The rate of increase appears to be accelerating, with larger absolute increases observed in 2023 (US$639 million) and 2024 (US$546 million) compared to earlier years.
- Depreciation Expense
- Depreciation expense exhibited an upward trend, rising from US$559 million in 2021 to US$621 million in 2025. While generally increasing, the growth rate slowed in 2025, showing a smaller increase compared to the prior four years. The expense increased by US$62 million between 2024 and 2025, compared to an increase of US$64 million between 2023 and 2024.
- Time Elapsed Since Purchase
- The reported time elapsed since purchase increased consistently from 7 years in 2021 to 9 years in 2025. This suggests a relatively stable asset base with no significant new purchases offsetting the aging of existing assets during this period. The consistent increase in time elapsed aligns with the observed increases in accumulated depreciation and depreciation expense.
The correlation between the increasing time elapsed since purchase and the rising accumulated depreciation and depreciation expense suggests a predictable pattern of asset depreciation. The slight deceleration in depreciation expense growth in 2025 warrants further investigation to determine if it signals a change in the asset base or depreciation methods.
Estimated Remaining Life
Based on: 10-K (reporting date: 2025-12-31), 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).
2025 Calculations
1 Estimated remaining life = (Property, plant and equipment, net – Land) ÷ Depreciation expense
= (7,543 – 157) ÷ 621 = 12
Property, plant, and equipment, net, exhibited a consistent upward trend over the five-year period, increasing from US$6,049 million in 2021 to US$7,543 million in 2025. This growth suggests ongoing investment in fixed assets. Land holdings experienced a slight, gradual decrease throughout the period, declining from US$169 million to US$157 million. Depreciation expense also increased steadily from US$559 million in 2021 to US$651 million in 2024, before decreasing slightly to US$621 million in 2025. The estimated remaining life of the property, plant, and equipment initially decreased from 11 years in 2021 to 10 years in 2022, then stabilized at 11 years for 2023 and 2024, and increased to 12 years in 2025.
- Net PP&E Growth
- The consistent increase in net property, plant, and equipment indicates continued capital expenditure. The rate of increase slowed slightly between 2024 and 2025, potentially due to a decrease in new acquisitions or an increase in disposals. The growth in net PP&E outpaced the increase in depreciation expense, suggesting that additions to assets exceeded the reduction from depreciation.
- Land Holdings
- The minor decline in land holdings could be attributed to sales of land, reclassifications of land use, or adjustments due to impairment. The decreases are relatively small and do not appear to represent a significant strategic shift.
- Depreciation Expense
- The rise in depreciation expense from 2021 to 2024 aligns with the increasing value of property, plant, and equipment. The slight decrease in depreciation expense in 2025, despite continued growth in net PP&E, may be due to changes in depreciation methods, asset mix, or the impact of the increased estimated remaining life.
- Estimated Remaining Life
- The initial decrease in estimated remaining life in 2022 could reflect a reassessment of asset useful lives. The subsequent stabilization at 11 years, followed by an increase to 12 years in 2025, suggests a potential extension of asset lives, possibly due to refurbishment, improved maintenance practices, or a change in expectations regarding asset utilization. The increase in estimated remaining life in 2025 would reduce the annual depreciation expense, all other factors being equal.