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

Exxon Mobil Corp. (NYSE:XOM)

Analysis of Property, Plant and Equipment

Advanced level

Property, Plant and Equipment Disclosure

Exxon Mobil Corp., balance sheet: property, plant and equipment

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Upstream 386,614  376,041  372,791  371,904  355,265 
Downstream 57,922  52,527  48,241  50,343  47,915 
Chemical 42,868  40,788  39,008  37,966  34,098 
Other 17,918  17,346  17,150  16,972  16,637 
Property, plant and equipment, cost 505,322  486,702  477,190  477,185  453,915 
Accumulated depreciation and depletion (277,769) (233,684) (230,089) (224,555) (209,691)
Property, plant and equipment, at cost, less accumulated depreciation and depletion 227,553  253,018  247,101  252,630  244,224 

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22).

Item Description The company
Property, plant and equipment, cost 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. Exxon Mobil Corp.’s property, plant and equipment, cost increased from 2018 to 2019 and from 2019 to 2020.
Property, plant and equipment, at cost, less accumulated depreciation and depletion 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. Exxon Mobil Corp.’s property, plant and equipment, at cost, less accumulated depreciation and depletion increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Asset Age Ratios (Summary)

Exxon Mobil Corp., asset age ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Average age ratio 54.97% 48.01% 48.22% 47.06% 46.20%
Estimated total useful life (years) 11 26 25 24 20
Estimated age, time elapsed since purchase (years) 6 12 12 11 9
Estimated remaining life (years) 5 13 13 13 11

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22).

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. Exxon Mobil Corp.’s average age ratio of depreciable property, plant and equipment improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
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. Exxon Mobil Corp.’s estimated total useful life of depreciable property, plant and equipment increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Exxon Mobil Corp.’s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Estimated remaining life Exxon Mobil Corp.’s estimated remaining life of depreciable property, plant and equipment increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Average Age

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Accumulated depreciation and depletion 277,769  233,684  230,089  224,555  209,691 
Property, plant and equipment, cost 505,322  486,702  477,190  477,185  453,915 
Asset Age Ratio
Average age1 54.97% 48.01% 48.22% 47.06% 46.20%

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22).

2020 Calculations

1 Average age = 100 × Accumulated depreciation and depletion ÷ Property, plant and equipment, cost
= 100 × 277,769 ÷ 505,322 = 54.97%

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. Exxon Mobil Corp.’s average age ratio of depreciable property, plant and equipment improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Estimated Total Useful Life

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Property, plant and equipment, cost 505,322  486,702  477,190  477,185  453,915 
Depreciation and depletion expense 46,009  18,998  18,745  19,893  22,308 
Asset Age Ratio (Years)
Estimated total useful life1 11 26 25 24 20

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22).

2020 Calculations

1 Estimated total useful life = Property, plant and equipment, cost ÷ Depreciation and depletion expense
= 505,322 ÷ 46,009 = 11

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. Exxon Mobil Corp.’s estimated total useful life of depreciable property, plant and equipment increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Accumulated depreciation and depletion 277,769  233,684  230,089  224,555  209,691 
Depreciation and depletion expense 46,009  18,998  18,745  19,893  22,308 
Asset Age Ratio (Years)
Time elapsed since purchase1 6 12 12 11 9

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22).

2020 Calculations

1 Time elapsed since purchase = Accumulated depreciation and depletion ÷ Depreciation and depletion expense
= 277,769 ÷ 46,009 = 6

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. Exxon Mobil Corp.’s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Estimated Remaining Life

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Property, plant and equipment, at cost, less accumulated depreciation and depletion 227,553  253,018  247,101  252,630  244,224 
Depreciation and depletion expense 46,009  18,998  18,745  19,893  22,308 
Asset Age Ratio (Years)
Estimated remaining life1 5 13 13 13 11

Based on: 10-K (filing date: 2021-02-24), 10-K (filing date: 2020-02-26), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22).

2020 Calculations

1 Estimated remaining life = Property, plant and equipment, at cost, less accumulated depreciation and depletion ÷ Depreciation and depletion expense
= 227,553 ÷ 46,009 = 5

Asset age ratio Description The company
Estimated remaining life Exxon Mobil Corp.’s estimated remaining life of depreciable property, plant and equipment increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.