GE Aerospace (NYSE:GE)

The data on property, plant, and equipment demonstrates notable trends over the last five years. Overall, there is a consistent decline in most asset categories, indicating potential asset disposals, impairments, or decreased capital investments.

Land and Improvements

The value decreases steadily from US$599 million in 2020 to US$131 million in 2024, showing a marked reduction of approximately 78%. This downward trend suggests significant divestments or reclassification of land-related assets.

Buildings, Structures, and Related Equipment

The balance remains relatively stable between 2020 and 2022, fluctuating near US$8.2 billion. However, a pronounced decline occurs afterward, dropping to US$3.1 billion by 2024. This implies substantial disposals or write-downs of the company’s structural assets during the later periods.

Machinery and Equipment

Values are stable around US$21 billion from 2020 through 2022 but fall sharply to US$11.5 billion by 2024, an approximate 45% reduction. The decline may reflect asset aging, reduction in operational capacity, or strategic scaling down of equipment holdings.

Leasehold Costs and Manufacturing Plant Under Construction

This category remains relatively constant between 2020 and 2022 but shows a gradual decline to US$1.1 billion in 2024. The decrease could indicate slower progress or reduced investment in plant construction or leasehold improvements.

Total Industrial PPE

The "GE Industrial" total shows a peak near US$31.9 billion in 2021 but declines yearly to US$15.9 billion in 2024. This consistent drop aligns with the decreases observed in its components, signaling a broader structural shrinkage of the industrial asset base.

Original Cost of Property, Plant, and Equipment (Excluding ROU Assets)

An inconsistency exists in the data where the original cost is listed as US$75.9 billion in 2020 but significantly lower from 2021 onward (around US$31.6 billion). Despite this, the trend from 2021 to 2024 still reflects decline, consistent with disposals or impairments.

Accumulated Depreciation and Amortization

The accumulated depreciation also decreases in absolute terms from -US$34.3 billion in 2020 to -US$9.7 billion in 2024. This reduction corresponds with the decrease in gross asset values, suggesting that disposed or impaired assets are removed from the depreciation pool.

Net Carrying Value of Property, Plant, and Equipment (Excluding ROU Assets)

The net carrying value falls substantially from US$41.7 billion in 2020 to US$6.2 billion in 2024, a reduction of over 85%. This confirms a significant downsizing of the asset base, implying major asset sales, write-downs, or operational downsizing over the period.

In summary, the company’s property, plant, and equipment experienced continuous and significant declines in both gross and net values between 2020 and 2024. The data suggests a strategic contraction or restructuring, with notable asset disposals across land, buildings, machinery, and construction projects. Correspondingly, accumulated depreciation aligns with these disposals, reinforcing the asset base reduction narrative.

The analysis of the property, plant, and equipment data reveals several notable trends over the five-year period from 2020 to 2024.

Average Age Ratio

This ratio shows a consistent increase from 45.47% in 2020 to a peak of 62.12% in 2023, followed by a slight decrease to 61.37% in 2024. This upward trend indicates that the assets are aging, with a larger proportion of their useful life having been used over time.

Estimated Total Useful Life

The total estimated useful life of the assets shows a gradual increase from 16 years in 2020 to 19 years in 2024. This suggests either an extension of the expected lifespan of the assets or acquisition of newer assets with longer useful lives.

Estimated Age (Time Elapsed Since Purchase)

The estimated age increases steadily from 7 years in 2020 to 12 years in 2024, reflecting the passage of time and consistent aging of the assets without significant early disposals or replacements.

Estimated Remaining Life

The remaining life shows a notable decline from 9 years in 2020 to 7 years by 2021, then stabilizes at that level through to 2024. This suggests that while assets are aging, the extension in total useful life has offset the reduction in remaining life after 2021.

Overall, the data indicates an aging asset base with a slight extension in the total useful life estimation, resulting in a relatively stable remaining life after an initial drop. This may reflect management’s strategy to maintain or upgrade assets to prolong their operational utility.

The analysis of the annual property, plant, and equipment data reveals several significant trends over the reported periods.

Accumulated depreciation and amortization

There is a clear declining trend in accumulated depreciation and amortization, decreasing from 34,252 million US dollars at the end of 2020 to 9,674 million US dollars by the end of 2024. This substantial reduction indicates a faster rate of asset disposals, impairments, or accounting adjustments affecting the accumulated depreciation balance.

Property, plant, and equipment, original cost (excluding ROU operating lease assets)

The original cost of property, plant, and equipment also exhibits a marked downward trend, moving from 75,927 million US dollars in 2020 down to 15,894 million US dollars in 2024. This sustained decline suggests considerable asset sales, write-offs, or reduced capital expenditures over the years.

Land and improvements

The value of land and improvements steadily decreases from 599 million US dollars in 2020 to 131 million US dollars in 2024. This decline may reflect disposals or revaluation activities impacting land assets.

Average age ratio

The average age ratio of the assets increases sharply from 45.47% in 2020 to above 60% from 2021 onward, stabilizing around 61-62% between 2022 and 2024. This upward movement indicates a maturing asset base with fewer acquisitions of new assets relative to the aging existing ones, implying less recent investment or slower asset renewal.

Overall, the data portrays a notable reduction in the asset base both in terms of original cost and accumulated depreciation, accompanied by an aging asset profile. These patterns may signify strategic downsizing, divestitures, or changes in capital investment policy impacting the company's property, plant, and equipment portfolio over the years examined.

Original cost of property, plant, and equipment (excluding ROU operating lease assets)

The original cost exhibits a consistent downward trend over the analyzed periods. Starting from $75,927 million at the end of 2020, it declines sharply to $31,904 million in 2021, then experiences minor decreases in the following years, reaching $15,894 million by the end of 2024. This pattern suggests significant asset disposals, write-downs, or reclassifications impacting the recorded original cost.

Land and improvements

The value attributed to land and improvements also declines steadily across the years. From $599 million in 2020, the figure decreases marginally to $585 million in 2021, then continues a gradual reduction to $482 million in 2023, followed by a noteworthy drop to $131 million by 2024. This indicates possible asset sales or impairment related specifically to land and improvements over the period.

Depreciation and amortization of property, plant, and equipment

Depreciation and amortization expense reflects a clear downward trajectory, decreasing from $4,636 million in 2020 to $834 million in 2024. The steep decline in the first year to $1,871 million is followed by moderate decreases thereafter. This reduction likely correlates with the declining asset base and suggests diminishing depreciation charges in line with the reduced original cost.

Estimated total useful life

The estimated useful life of the property, plant, and equipment shows a gradual increase from 16 years in 2020 to 19 years by 2024. This trend may indicate revisions in asset lifespan assumptions, possibly reflecting changes in asset composition, improvements in maintenance practices, or updated management estimates aiming to extend asset utility over time.

The financial data reveals notable trends in the property, plant, and equipment depreciation and amortization over a five-year period.

Accumulated depreciation and amortization

This figure shows a significant and consistent decline from 34,252 million US dollars at the end of 2020 to 9,674 million US dollars by the end of 2024. The downward trend suggests a rapid reduction in the book value of depreciable assets or possible disposals or impairments over time.

Depreciation and amortization expense

The annual depreciation and amortization expense also decreased progressively, falling from 4,636 million US dollars in 2020 to 834 million US dollars in 2024. This reduction aligns with the declining accumulated depreciation figure and may reflect a decrease in the acquisition of new assets, changes in the asset base, or adjustments to the depreciation methods or useful lives applied.

Time elapsed since purchase

The average age of the property, plant, and equipment steadily increased from 7 years in 2020 to 12 years in 2024, indicating that the asset base is aging with fewer recent additions or replacements. This aging could impact maintenance costs and operational efficiency in the future.

Overall, the data points to an aging asset base with diminishing depreciation expenses and accumulated depreciation values, possibly reflecting a period of limited reinvestment or asset turnover.

The financial data reveals several notable trends regarding the property, plant, and equipment (PPE) of the company over the five-year period ending in 2024.

Net Carrying Value of Property, Plant, and Equipment

The net carrying value, excluding right-of-use operating lease assets, exhibits a marked decline from US$41,675 million in 2020 to US$6,220 million in 2024. This represents a substantial decrease over the period, with the most significant drop occurring between 2020 and 2021. The downward trend continues consistently year-over-year, highlighting a considerable reduction in the net book value of PPE.

Land and Improvements

The value associated with land and improvements also declines steadily from US$599 million in 2020 to US$131 million in 2024. Similar to the overall PPE, the decline is continuous each year, with a slightly accelerated decrease in the later years. This suggests an ongoing disposal or write-down of assets related to land and associated improvements.

Depreciation and Amortization of Property, Plant, and Equipment

Depreciation and amortization expenses decrease significantly from US$4,636 million in 2020 to US$834 million in 2024. The most notable drop occurs between 2020 and 2021, followed by a consistent downward trajectory. The declining depreciation expense may be a direct consequence of the diminishing asset base over time.

Estimated Remaining Life of Assets

The estimated remaining life of the assets decreases from 9 years in 2020 to 7 years in 2021 and remains stable at 7 years through 2024. This indicates that assets are aging, but the company has not revised its estimate beyond this adjustment after 2021.

Overall, the data indicates a significant contraction in the company's property, plant, and equipment base during the period under review, accompanied by a corresponding reduction in depreciation charges. The stability in estimated remaining life after an initial decrease suggests a relatively consistent approach to asset life estimation following asset base changes.