General Motors Co. (NYSE:GM)

Over the five-year period, significant changes are observed in the composition of property, plant, and equipment. The most substantial growth occurs in buildings and improvements, and machinery and equipment, while land shows a modest decline. Accumulated depreciation consistently increases, impacting the net book value of property.

Land

The value of land exhibits a slight downward trend overall, decreasing from US$1,301 million in 2021 to US$1,269 million in 2025. Fluctuations occur within this period, with a peak of US$1,307 million in 2022 and a low of US$1,253 million in 2024. The changes are relatively small in magnitude compared to other asset categories.

Buildings and Improvements

Buildings and improvements demonstrate a consistent and substantial increase throughout the period. The value rises from US$10,542 million in 2021 to US$16,058 million in 2025, representing a significant investment in this asset category. This growth suggests expansion or upgrades to facilities.

Machinery and Equipment

Machinery and equipment also shows a consistent upward trend, increasing from US$31,444 million in 2021 to US$42,194 million in 2025. This indicates ongoing investment in production capabilities. The rate of increase appears to moderate slightly between 2024 and 2025.

Special Tools

The value of special tools remains relatively stable, fluctuating between US$23,719 million and US$26,086 million. A slight decrease is observed in the final year, with the value settling at US$25,809 million in 2025. This suggests a consistent level of investment and replacement in this category.

Construction in Progress

Construction in progress exhibits volatility, increasing from US$5,395 million in 2021 to US$8,135 million in 2023, then decreasing to US$7,176 million in 2024, before rising again to US$8,982 million in 2025. This suggests ongoing projects with varying stages of completion and investment.

Gross Property

Gross property, representing the total cost of assets, increases steadily from US$48,682 million in 2021 to US$68,503 million in 2025. This growth is primarily driven by the increases in buildings and improvements, and machinery and equipment.

Accumulated Depreciation

Accumulated depreciation consistently increases throughout the period, rising from US$31,286 million in 2021 to US$42,629 million in 2025. This is expected as assets age and are utilized. The rate of increase in accumulated depreciation accelerates in the later years of the period.

Net Property

Net property, calculated as gross property less accumulated depreciation, shows an increasing trend from US$41,115 million in 2021 to US$51,904 million in 2024, but then decreases slightly to US$51,683 million in 2025. The initial growth reflects investment outpacing depreciation, while the final year’s decrease suggests depreciation is beginning to offset new investments more significantly.

The analysis reveals evolving characteristics regarding the company’s property, plant, and equipment. A general trend of decreasing average age ratio is observed over the period from 2021 to 2024, followed by a slight increase in the most recent year. Simultaneously, the estimated total useful life of these assets has been increasing, while the estimated age since purchase and remaining life have also shown changes.

Average Age Ratio

The average age ratio decreased from 66.03% in 2021 to 59.72% in 2024, indicating a relative rejuvenation of the asset base. However, in 2025, the ratio increased to 63.40%, suggesting a potential slowdown in asset replacement or an increase in the proportion of older assets. This fluctuation warrants further investigation.

Useful Life and Age

The estimated total useful life of the assets increased from 8 years in 2021 and 2022 to 9 years in 2023 and then to 10 years in 2024 and 2025. This suggests a potential change in accounting estimates, an investment in assets with longer lifespans, or a reassessment of depreciation methods. The estimated age since purchase remained constant at 5 years from 2021 to 2023, then increased to 6 years in 2024 and 2025, aligning with the passage of time and potentially reflecting recent acquisition patterns.

Remaining Useful Life

The estimated remaining life initially held steady at 7 years from 2021 to 2023. It then increased to 8 years in 2024, coinciding with the increase in estimated total useful life, before decreasing to 7 years in 2025. This suggests a dynamic relationship between the total useful life and the age of the assets, and the 2025 decrease could be due to accelerated depreciation or the introduction of newer, shorter-lived assets.

Overall, the trends suggest a period of asset renewal and potential changes in depreciation policies or asset acquisition strategies. The increase in the average age ratio in 2025, coupled with the changes in estimated useful life and remaining life, indicates a need for continued monitoring to understand the long-term implications for the company’s asset base and financial performance.

An examination of the financial information reveals trends in property, plant, and equipment over a five-year period. Gross property, plant, and equipment values consistently increased from 2021 to 2025, while accumulated depreciation also rose throughout the period. The average age ratio exhibited a generally decreasing trend, though with a slight increase in the most recent year.

Gross Property, Plant, and Equipment

The value of gross property, plant, and equipment increased from US$48.682 billion in 2021 to US$68.503 billion in 2025. The rate of increase was most pronounced between 2022 and 2023, growing by US$6.239 billion. Growth slowed in subsequent years, but remained positive.

Accumulated Depreciation

Accumulated depreciation increased steadily from US$31.286 billion in 2021 to US$42.629 billion in 2025. The largest single-year increase occurred between 2023 and 2024, with an increase of US$1.301 billion. This suggests a continued recognition of the cost of assets over their useful lives.

Land

The value of land remained relatively stable throughout the period, fluctuating between US$1.253 billion and US$1.307 billion. The changes observed were minimal and did not demonstrate a clear trend.

Average Age Ratio

The average age ratio, expressed as a percentage, decreased from 66.03% in 2021 to 59.72% in 2024, indicating a relatively younger asset base. However, in 2025, the ratio increased to 63.40%. This reversal of the downward trend warrants further investigation to determine the cause, such as a shift in capital expenditure patterns or changes in depreciation methods.

Overall, the company appears to be consistently investing in property, plant, and equipment. The increasing accumulated depreciation is consistent with the use of these assets. The recent change in the average age ratio suggests a potential shift in asset management strategy or investment focus that should be monitored.

Over the five-year period ending December 31, 2025, gross property values demonstrate a consistent upward trajectory. Simultaneously, depreciation and amortization expense fluctuates while the estimated total useful life of assets exhibits an increasing trend.

Gross Property

The value of gross property increased from US$48,682 million in 2021 to US$68,503 million in 2025, representing a cumulative growth of approximately 40.8%. The most significant year-over-year increase occurred between 2022 and 2023, with an addition of US$6,239 million. Growth rates decelerated in 2024 and 2025, though values continued to rise.

Land

The value of land remained relatively stable throughout the period, fluctuating between US$1,253 million and US$1,307 million. The changes observed are minimal and do not indicate a significant trend.

Depreciation and Amortization Expense

Depreciation and amortization expense increased from US$5,829 million in 2021 to US$6,892 million in 2025, a cumulative increase of approximately 18.2%. While generally increasing, expense decreased slightly between 2023 and 2024, from US$6,719 million to US$6,466 million, before rising again in 2025. This fluctuation may be linked to changes in the asset base and the estimated useful lives of those assets.

Estimated Total Useful Life

The estimated total useful life of property, plant, and equipment increased from 8 years in 2021 and 2022 to 9 years in 2023, and then to 10 years in 2024 and 2025. This lengthening of the estimated useful life could indicate investments in assets with longer operational durations, or a reassessment of the depreciation policies applied to existing assets. The increase in estimated useful life, coupled with the rising gross property values, may contribute to a slower rate of depreciation expense relative to the gross asset base.

The combined effect of increasing gross property values and lengthening estimated useful lives suggests a potential shift towards a more durable and long-term asset base. Further investigation into the nature of the asset additions and the rationale behind the changes in estimated useful life would provide a more comprehensive understanding of these trends.

Analysis reveals a consistent increase in accumulated depreciation over the five-year period, alongside fluctuating, but generally increasing, depreciation and amortization expense. The reported time elapsed since purchase also indicates a shift, moving from an average asset age of five years to six years during the observed timeframe.

Accumulated Depreciation

Accumulated depreciation demonstrates a steady upward trajectory, increasing from US$31,286 million in 2021 to US$42,629 million in 2025. This signifies a continued recognition of the cost of assets over their useful lives. The increase from 2024 to 2025 is notably larger, at US$5,799 million, compared to the prior year increase of US$1,304 million, suggesting potentially larger asset additions or accelerated depreciation in the latter period.

Depreciation and Amortization Expense

Depreciation and amortization expense generally increased from US$5,829 million in 2021 to US$6,892 million in 2025. However, there was a slight decrease observed between 2023 and 2024, from US$6,719 million to US$6,466 million. This dip could be attributable to asset disposals, changes in estimated useful lives, or alterations in the depreciation method. The subsequent increase in 2025 suggests a return to a higher level of expense recognition.

Asset Age

The reported time elapsed since purchase increased from five years in 2021, 2022, and 2023 to six years in 2024 and 2025. This indicates that, on average, the property, plant, and equipment base is aging. This aging asset base, coupled with increasing depreciation expense, may suggest a need for future capital expenditures to maintain operational capacity and efficiency. The shift in reported age aligns with the increasing accumulated depreciation, as older assets naturally have a higher accumulated depreciation balance.

The observed trends suggest a consistent utilization and depreciation of the asset base. The increase in accumulated depreciation and generally rising depreciation expense are expected outcomes of normal business operations. The slight dip in depreciation expense in 2024 warrants further investigation to understand the underlying cause, but the overall pattern indicates a stable, albeit aging, asset portfolio.

Property, net of accumulated depreciation, demonstrates a generally increasing trend over the five-year period, rising from US$41,115 million in 2021 to US$51,683 million in 2025. Land holdings remained relatively stable, experiencing minor fluctuations throughout the period. Depreciation and amortization expense also increased overall, though with some year-to-year variation. The estimated remaining useful life of property, plant, and equipment remained consistent at seven years for most of the period, with a single year showing an estimate of eight years.

Property, Net

The value of property, net, increased significantly between 2021 and 2023, growing from US$41,115 million to US$50,321 million. The rate of increase slowed in 2024, with a rise to US$51,904 million, and experienced a slight decrease in 2025, settling at US$51,683 million. This suggests potential stabilization or a possible reduction in capital expenditures towards the end of the period.

Land

Land values exhibited minimal change throughout the observed period. Fluctuations were less than 5% annually, indicating a stable valuation approach or limited activity related to land transactions. The value ranged between US$1,253 million and US$1,307 million.

Depreciation and Amortization Expense

Depreciation and amortization expense increased from US$5,829 million in 2021 to US$6,892 million in 2025. The largest single-year increase occurred between 2022 and 2023 (US$492 million). The increase in expense generally correlates with the increase in the net book value of property, suggesting ongoing investment in property, plant, and equipment. A slight decrease was observed between 2023 and 2024.

Estimated Remaining Life

The estimated remaining useful life of property, plant, and equipment was consistently reported as seven years, except for 2024, where it was estimated at eight years. The single-year increase to eight years could indicate a reassessment of asset lives, potentially due to upgrades, maintenance, or changes in usage patterns. The return to seven years in 2025 suggests this may have been a temporary adjustment.

The combination of increasing property values and depreciation expense suggests continued investment in fixed assets. The relatively stable land values and consistent estimated remaining life, with the exception of 2024, indicate a predictable approach to asset management.