Analysis of Property, Plant and Equipment
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Property, Plant and Equipment Disclosure
Coca-Cola 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).
The reported values for property, plant, and equipment demonstrate fluctuating trends over the five-year period. Overall, the net book value of property, plant, and equipment exhibits volatility, with increases in certain years offset by declines in others. A closer examination of the individual components reveals more specific patterns.
- Land
- The value of land decreased significantly from 2021 to 2023, falling from US$652 million to US$229 million. A slight increase to US$265 million was observed in 2025, but the value remains substantially lower than the 2021 level. This decrease may indicate land sales, reclassifications, or write-downs.
- Buildings and Improvements
- Buildings and improvements generally increased in value from 2021 to 2024, rising from US$4,349 million to US$5,143 million. However, a decrease to US$4,967 million was recorded in 2025. This suggests ongoing investment in building infrastructure, potentially offset by disposals or impairment in the final year.
- Machinery and Equipment
- Machinery and equipment values fluctuated. An initial increase from US$13,861 million in 2021 to US$14,030 million in 2022 was followed by a decrease to US$13,593 million in 2023. A subsequent rise to US$14,504 million in 2024 was observed, before declining again to US$13,500 million in 2025. This pattern could reflect cyclical investment in and disposal of equipment.
- Total Cost
- The total cost of property, plant, and equipment followed a similar pattern to the combined trends of its components. It peaked at US$19,873 million in 2024, after increasing from US$18,862 million in 2021, and then decreased to US$18,732 million in 2025. This indicates overall capital expenditure activity with a recent slowdown.
- Accumulated Depreciation
- Accumulated depreciation consistently increased over the period, rising from US$8,942 million in 2021 to US$9,570 million in 2024, before decreasing slightly to US$9,119 million in 2025. The consistent increase reflects the ongoing consumption of the economic benefits of the assets. The decrease in 2025 may be attributable to asset disposals.
- Net Book Value
- The net book value of property, plant, and equipment experienced fluctuations. It decreased from US$9,920 million in 2021 to US$9,236 million in 2023, increased to US$10,303 million in 2024, and then decreased to US$9,613 million in 2025. These changes are a result of the combined effects of capital expenditures, disposals, and depreciation.
The variations in land values warrant further investigation. The increases in buildings and equipment costs, coupled with the consistent rise in accumulated depreciation, suggest ongoing investment and the natural aging of the asset base. The net book value fluctuations indicate a dynamic asset portfolio.
Asset Age Ratios (Summary)
Coca-Cola 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 analysis of property, plant, and equipment reveals evolving trends in asset age and useful life estimations. The average age ratio exhibits a generally increasing pattern from 2021 to 2023, followed by a slight decrease in 2024 and a modest increase in 2025. Simultaneously, estimations of total useful life and elapsed time since purchase have been consistently increasing over the period, suggesting a potential shift in asset composition or depreciation policies.
- Average Age Ratio
- The average age ratio increased from 49.10% in 2021 to 50.62% in 2023, indicating a growing proportion of assets nearing the midpoint of their useful lives. A decrease to 48.71% in 2024 suggests a potential refresh of the asset base or a revision in age calculations. The ratio then rose slightly to 49.38% in 2025, continuing the overall trend of aging assets.
- Estimated Total Useful Life
- The estimated total useful life of assets has generally trended upwards, increasing from 14 years in 2021 to 20 years in 2024. A slight decrease to 19 years in 2025 is observed. This increase could reflect investments in more durable assets, changes in accounting estimates, or the acquisition of assets with inherently longer lifespans.
- Estimated Age and Remaining Life
- The estimated age, representing the time elapsed since purchase, has consistently increased from 7 years in 2021 to 10 years in 2024, before decreasing to 9 years in 2025. Correspondingly, the estimated remaining life has also increased, mirroring the trend in total useful life, reaching 10 years in 2025. The consistent increase in both elapsed time and remaining life suggests a deliberate strategy to maintain a relatively young asset base, potentially through ongoing capital expenditures and asset replacement programs.
The interplay between these ratios suggests a dynamic approach to asset management. While the average age ratio indicates aging assets, the increasing estimations of total useful life and remaining life suggest proactive measures are being taken to extend asset usability and maintain a modern asset base. Further investigation into capital expenditure patterns and depreciation methods would provide a more comprehensive understanding of these trends.
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 ÷ (Property, plant and equipment, cost – Land)
= 100 × ÷ ( – ) =
The reported values for accumulated depreciation, property, plant, and equipment cost, land, and the average age ratio exhibit distinct trends over the five-year period. Accumulated depreciation generally increased from 2021 to 2024, before decreasing in 2025. Property, plant, and equipment cost fluctuated, with an initial increase through 2022, a decrease in 2023, a subsequent increase in 2024, and a final decrease in 2025. Land values decreased significantly from 2021 to 2023, followed by a slight increase in 2024 and a further increase in 2025. The average age ratio remained relatively stable, fluctuating within a narrow range.
- Accumulated Depreciation
- Accumulated depreciation increased from US$8,942 million in 2021 to US$9,234 million in 2022, remaining relatively flat at US$9,233 million in 2023. A further increase was observed in 2024, reaching US$9,570 million, before declining to US$9,119 million in 2025. This suggests a potential slowing of depreciation expense recognition or asset disposals in the final year.
- Property, Plant, and Equipment Cost
- The cost of property, plant, and equipment increased from US$18,862 million in 2021 to US$19,075 million in 2022. A decrease was then recorded in 2023, falling to US$18,469 million. This was followed by a substantial increase to US$19,873 million in 2024, and a subsequent decrease to US$18,732 million in 2025. These fluctuations may indicate significant capital expenditure and asset retirement activity.
- Land
- Land values experienced a notable decline from US$652 million in 2021 to US$229 million in 2023. A slight recovery occurred in 2024, with land valued at US$226 million, followed by a further increase to US$265 million in 2025. This suggests potential land sales or revaluations in the earlier period, with some subsequent acquisitions or revaluations.
- Average Age Ratio
- The average age ratio exhibited minimal variation throughout the period, starting at 49.10% in 2021 and fluctuating to 50.62% in 2023, before decreasing to 48.71% in 2024 and settling at 49.38% in 2025. This relative stability suggests a consistent pattern of asset renewal or depreciation relative to the overall asset base.
The combined trends suggest a dynamic asset base with ongoing investment, depreciation, and potential restructuring activities. The decrease in property, plant, and equipment cost in 2023 and 2025, coupled with the decline in accumulated depreciation in 2025, warrants further investigation to understand the underlying drivers of these changes.
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 = (Property, plant and equipment, cost – Land) ÷ Depreciation expense
= ( – ) ÷ =
The cost of property, plant, and equipment exhibited fluctuations over the five-year period. An initial increase from US$18,862 million in 2021 to US$19,075 million in 2022 was followed by a decrease to US$18,469 million in 2023. A subsequent rise to US$19,873 million occurred in 2024, before declining again to US$18,732 million in 2025. Land values decreased significantly from 2021 to 2023, falling from US$652 million to US$229 million, then showed a slight increase in 2024 and 2025.
- Depreciation Expense
- Depreciation expense demonstrated a consistent downward trend throughout the period, decreasing from US$1,262 million in 2021 to US$978 million in 2025. The rate of decline appeared to moderate over time, with smaller decreases observed in the later years compared to the earlier ones.
- Estimated Total Useful Life
- The estimated total useful life of property, plant, and equipment increased from 14 years in 2021 to 20 years in 2024. This suggests a lengthening of the period over which assets are expected to generate economic benefits. However, the estimated useful life decreased to 19 years in 2025, potentially indicating a reassessment of asset longevity or changes in operational factors.
The observed increase in estimated useful life from 2021 to 2024, coupled with the decreasing depreciation expense, suggests a potential reduction in the annual charge to earnings related to the consumption of asset value. The slight decrease in estimated useful life in 2025 warrants further investigation to determine the underlying cause and potential impact on future financial reporting.
Fluctuations in the cost of property, plant, and equipment may be attributable to capital expenditures, asset disposals, or revaluations. The significant decline in land value between 2021 and 2023 could be due to sales of land holdings or impairment charges. Further analysis, including a review of the company’s capital expenditure schedule and asset disposal activity, would be necessary to fully understand these movements.
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
= ÷ =
The accumulated depreciation exhibited an increasing trend from 2021 to 2024, before decreasing in 2025. Depreciation expense consistently declined over the five-year period. The reported time elapsed since purchase initially increased, then decreased in the final year.
- Accumulated Depreciation
- Accumulated depreciation increased from US$8,942 million in 2021 to US$9,570 million in 2024, representing a cumulative increase of approximately 7.0%. However, it decreased to US$9,119 million in 2025, indicating a potential slowdown in depreciation charges or asset disposals. This decrease warrants further investigation to understand the underlying reasons.
- Depreciation Expense
- Depreciation expense demonstrated a consistent downward trend, decreasing from US$1,262 million in 2021 to US$978 million in 2025. This represents a reduction of approximately 22.5% over the period. The decline suggests either a decrease in new asset acquisitions requiring depreciation, a change in the estimated useful lives of existing assets, or the impact of fully depreciated assets being removed from service.
- Time Elapsed Since Purchase
- The reported time elapsed since purchase increased steadily from 7 years in 2021 to 10 years in 2024. The decrease to 9 years in 2025 suggests significant asset turnover, potentially through disposals of older assets and replacement with newer ones. Alternatively, it could indicate a restatement of asset purchase dates or a change in the method of calculating time elapsed.
The combination of decreasing depreciation expense and a decrease in the time elapsed since purchase in 2025 suggests a potential shift in the company’s asset base. Further analysis, including a review of asset additions, disposals, and changes in useful lives, is recommended to fully understand these trends.
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
= ( – ) ÷ =
The net value of property, plant, and equipment exhibited volatility over the five-year period. Beginning at US$9,920 million in 2021, it decreased to US$9,236 million in 2023 before increasing to US$10,303 million in 2024 and subsequently declining to US$9,613 million in 2025. Land, a component of property, plant, and equipment, experienced a significant decrease from US$652 million in 2021 to US$229 million in 2023, followed by a modest increase to US$265 million in 2025.
- Depreciation Expense
- Depreciation expense demonstrated a consistent downward trend throughout the period, decreasing from US$1,262 million in 2021 to US$978 million in 2025. This suggests a decreasing value of depreciable assets or a change in depreciation methods.
- Estimated Remaining Life
- The estimated remaining life of the property, plant, and equipment increased steadily from 7 years in 2021 to 10 years in 2024, remaining constant at 10 years in 2025. This increase could indicate recent asset acquisitions with longer useful lives, revisions to asset life estimations, or a shift in the company’s asset base towards more durable items. The lengthening of the estimated remaining life, coupled with the decreasing depreciation expense, suggests a slower rate of asset consumption.
The fluctuation in net property, plant, and equipment, combined with the decreasing depreciation expense and increasing estimated remaining life, warrants further investigation. Potential factors contributing to these trends include asset disposals, acquisitions, impairment charges, changes in depreciation policies, and ongoing assessments of asset useful lives. The substantial decline in land value also merits attention.