Analysis of Property, Plant and Equipment
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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Analysis of Geographic Areas
- Enterprise Value to EBITDA (EV/EBITDA)
- Dividend Discount Model (DDM)
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
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Property, Plant and Equipment Disclosure
Exxon Mobil Corp., balance sheet: property, plant and equipment
US$ in millions
Based on: 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), 10-K (reporting date: 2020-12-31).
- Upstream Segment
- There is a general downward trend in the value of property, plant, and equipment in the Upstream segment from 2020 to 2023, with values decreasing from $386,614 million in 2020 to $359,031 million in 2023. However, a notable recovery occurs in 2024 with an increase to $423,038 million, indicating renewed investment or asset acquisition in this segment.
- Energy Products
- The figures for Energy Products remain relatively stable over the period from 2020 to 2024. Values oscillate slightly, starting at $57,922 million in 2020, reaching a peak of $58,504 million in 2021, and ending at $58,259 million in 2024. This stability suggests consistent asset levels without significant expansion or reduction.
- Chemical Products
- Chemical Products show a decline from $42,868 million in 2020 to $33,514 million in 2021, followed by a steady increase each subsequent year, reaching $39,224 million by 2024. The initial drop might reflect divestitures or impairments, while the gradual rise suggests reinvestment or asset improvements within this segment.
- Specialty Products
- Data for Specialty Products begins in 2021 with $9,217 million and demonstrates a modest but consistent growth across the observed years, reaching $9,559 million in 2024. The steady increase implies gradual expansion or asset additions in this area.
- Other
- The Other category shows a modest but steady increase over the period, from $17,918 million in 2020 to $23,823 million in 2024. This suggests incremental investments or capital additions in assets classified outside the primary business segments.
- Property, Plant and Equipment, Cost
- The total cost of property, plant, and equipment reveals a decline from $505,322 million in 2020 to $472,693 million in 2022. This is followed by a resurgence, rising to $553,903 million in 2024. The decrease could indicate asset disposals or reduced capital expenditures in the early period, with a subsequent increase pointing to renewed asset purchases or construction activities later on.
- Accumulated Depreciation and Depletion
- Accumulated depreciation and depletion values become less negative over time, moving from -$277,769 million in 2020 to -$259,585 million in 2024. This reduction in accumulated charges is somewhat atypical and may be influenced by asset retirements, revaluations, or changes in depreciation policies.
- Net Property, Plant and Equipment Value
- The net book value, calculated as cost less accumulated depreciation and depletion, declines from $227,553 million in 2020 to $204,692 million in 2022, reflecting the combined effects of depreciation and asset disposals. Subsequently, it rises sharply to $294,318 million in 2024, driven by increased capital expenditures and possibly lower accumulated depreciation. This trend indicates a rejuvenation of the asset base nearing the end of the period.
Asset Age Ratios (Summary)
Exxon Mobil Corp., asset age ratios
Based on: 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), 10-K (reporting date: 2020-12-31).
- Average Age Ratio
- The average age ratio shows a generally stable trend from 2020 to 2023, ranging between approximately 55% and 57%. However, there is a notable decline in 2024 to 46.86%, indicating a younger asset base or recent acquisitions that have lowered the overall average age relative to the estimated total useful life.
- Estimated Total Useful Life
- The estimated total useful life has increased significantly from 11 years in 2020 to consistently 24 years in 2021, 2023, and 2024, with a slight decline to 20 years in 2022. This suggests a reassessment or change in the asset base towards longer useful life estimates, reflecting potentially newer or more durable property, plant, and equipment.
- Estimated Age, Time Elapsed Since Purchase
- The estimated age of assets shows variability over the years. It increased sharply from 6 years in 2020 to 14 years in 2021, then decreased to 11 years in 2022, slightly rose to 13 years in 2023, and dropped again to 11 years in 2024. This pattern indicates fluctuations in asset acquisition timing or disposal, with periods of older asset retention followed by introduction of newer assets.
- Estimated Remaining Life
- The estimated remaining life of assets increased steadily from 5 years in 2020 to a peak of 13 years in 2024. This progression aligns with the extension of total useful life estimates and the decreasing average age ratio in 2024, reflecting an overall younger and longer-lasting asset profile towards the end of the observed period.
Average Age
Based on: 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), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 Average age = 100 × Accumulated depreciation and depletion ÷ Property, plant and equipment, cost
= 100 × ÷ =
- Property, Plant and Equipment Cost
- The cost of property, plant, and equipment exhibited a downward trend from 2020 to 2022, decreasing from $505.3 billion to $472.7 billion. However, there was a notable recovery in 2023, with the cost rising to $487.4 billion, followed by a significant increase in 2024, reaching $553.9 billion. This suggests a phase of asset retirement or impairment early on, succeeded by substantial investments or acquisitions in the latter years.
- Accumulated Depreciation and Depletion
- Accumulated depreciation and depletion followed a similar declining pattern from 2020 to 2022, dropping from $277.8 billion to $268.0 billion. There was a modest rise in 2023 to $272.4 billion before falling again in 2024 to $259.6 billion. The fluctuations indicate changes in depreciation expense recognition, possible asset disposals, or changes in asset valuation policies.
- Average Age Ratio
- The average age ratio, representing the proportion of accumulated depreciation relative to the asset cost, generally increased from 54.97% in 2020 to a peak of 56.7% in 2022, suggesting an aging asset base during this period. It slightly decreased to 55.9% in 2023, then exhibited a marked decline to 46.86% in 2024. The substantial reduction in 2024 points to a rejuvenation of the asset base, possibly due to acquisition of newer assets or retirement of older ones.
Estimated Total Useful Life
Based on: 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), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 Estimated total useful life = Property, plant and equipment, cost ÷ Depreciation and depletion expense
= ÷ =
- Property, Plant, and Equipment Cost
- The cost of property, plant, and equipment experienced a decline from 505,322 million US dollars at the end of 2020 to 472,693 million US dollars at the end of 2022. This reduction over two years suggests either asset disposals, impairments, or lower capital expenditures during this period. However, starting in 2023, the cost figure increased, recovering to 487,385 million US dollars, and further rose significantly to 553,903 million US dollars by the end of 2024. This upward trend indicates renewed investment or acquisition activity in fixed assets during the last two years.
- Depreciation and Depletion Expense
- The depreciation and depletion expense shows a pronounced fluctuation across the analyzed years. The expense decreased sharply from 46,009 million US dollars in 2020 to 20,607 million US dollars in 2021, indicating a reassessment or possible changes in asset base or depreciation policies. Following 2021, the expense steadily increased to 24,040 million US dollars in 2022, decreased to 20,641 million US dollars in 2023, and rose again to 23,442 million US dollars in 2024. These variations suggest changes in either the asset composition, usage patterns, or estimates of asset life impacting expense recognition.
- Estimated Total Useful Life
- The estimated total useful life of the assets doubled from 11 years in 2020 to 24 years in 2021 and remained relatively stable at around 20 to 24 years through 2024. This extension in useful life corresponds temporally with the sharp drop in depreciation expense, implying that asset life reassessments significantly influenced the depreciation charged during this period. Longer useful lives spread depreciation over a more extended period, reducing annual expense.
- Summary
- Overall, the data reveals a period of asset base contraction followed by expansion, aligned with fluctuating depreciation charges influenced sharply by changes in estimated asset useful lives. The adjustments in asset life estimates notably reduced depreciation expenses from 2021 onward. The recovery and growth in property, plant, and equipment cost in the last two years reflect increased capital investments, which may imply strategic asset growth or replacement initiatives.
Estimated Age, Time Elapsed since Purchase
Based on: 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), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 Time elapsed since purchase = Accumulated depreciation and depletion ÷ Depreciation and depletion expense
= ÷ =
- Accumulated depreciation and depletion
- The accumulated depreciation and depletion amount showed a generally declining trend over the five-year period. It started at 277,769 million USD in 2020 and decreased slightly to 259,585 million USD by 2024. Notably, the balance experienced a decrease in 2022 and again in 2024, indicating possible asset disposals or adjustments in depreciation policies.
- Depreciation and depletion expense
- The depreciation and depletion expense exhibited volatility throughout the period. The expense sharply dropped from 46,009 million USD in 2020 to 20,607 million USD in 2021. It then moderately increased to 24,040 million USD in 2022 before declining again in 2023 to 20,641 million USD, and rising to 23,442 million USD in 2024. This fluctuation may reflect changes in the asset base, asset retirement, or shifts in depreciation methods or rates.
- Time elapsed since purchase
- The average age of the property, plant, and equipment showed an increase from 6 years in 2020 to 14 years in 2021, followed by some variation but remaining relatively high, ending at 11 years in 2024. This suggests a maturing asset base with older assets retained for extended periods, potentially indicating slower capital turnover or reduced investment in new assets.
- Overall analysis
- The combination of decreasing accumulated depreciation alongside a fluctuating depreciation expense and increasing average asset age implies that the company may be managing an aging asset pool with cautious capital expenditures. The fluctuation in depreciation expense could be associated with asset disposals or reassessments, while the aging assets suggest a potential future need for reinvestment to maintain productive capacity.
Estimated Remaining Life
Based on: 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), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 Estimated remaining life = Property, plant and equipment, at cost, less accumulated depreciation and depletion ÷ Depreciation and depletion expense
= ÷ =
- Property, plant and equipment, at cost, less accumulated depreciation and depletion
- The value of property, plant, and equipment experienced a decline from 227,553 million USD at the end of 2020 to 204,692 million USD by the end of 2022. This downward trend reversed in 2023 with an increase to 214,940 million USD and a significant rise in 2024 reaching 294,318 million USD. The sharp increase in 2024 suggests substantial asset additions or revaluations during that period.
- Depreciation and depletion expense
- The depreciation and depletion expense dropped markedly from 46,009 million USD in 2020 to 20,607 million USD in 2021, then experienced slight fluctuations ranging between approximately 20,600 million USD and 23,400 million USD over the subsequent years. This initial sharp decrease followed by relative stability may reflect changes in asset base composition, depreciation policies, or asset retirements during the early period, with a steadier expense profile afterward.
- Estimated remaining life
- The estimated remaining life of property, plant, and equipment started at 5 years in 2020 and increased sharply to 11 years in 2021. It remained relatively stable with minor variations, recorded at 9 years in 2022, 10 years in 2023, and increased further to 13 years in 2024. The general upward trend indicates that the asset base is aging less rapidly, potentially due to asset renewals or extensions of useful life estimations.