Las Vegas Sands Corp. (NYSE:LVS)

The analysis of the property, plant, and equipment data over the five-year period reveals several notable trends and shifts in the company's asset structure and valuation.

Land and improvements

The value of land and improvements remained relatively stable from 2018 to 2020, with a slight decline from 651 million US dollars to 637 million US dollars. Subsequently, there was a more pronounced drop in 2021 to 449 million, with a marginal increase to 450 million in 2022. This indicates a reduction in land-related assets primarily occurring between 2020 and 2021, followed by stabilization.

Building and improvements

The value of buildings and improvements showed a gradual decrease during the period. It started at 17,861 million in 2018, remained fairly steady through 2019 and 2020, peaking slightly at 18,014 million, then experienced a substantial decline to 14,840 million in 2021, before a modest recovery to 15,494 million in 2022. This suggests significant depreciation or asset disposals affecting this category during 2021.

Furniture, fixtures, equipment, and leasehold improvements

Values in this category increased initially from 4,255 million in 2018 to 4,843 million in 2020. Following this period, the value decreased to 3,992 million in 2021 but showed a slight rebound to 4,155 million in 2022. This pattern indicates investment growth until 2020, followed by divestments or acceleration in depreciation subsequently.

Transportation

Transportation assets rose from 458 million in 2018 to 525 million in 2020, marking steady growth. However, the values then declined slightly over the next two years to 494 million in 2021 and further to 482 million in 2022, reflecting minor reductions or disposals in this asset class.

Construction in progress

This category showed a strong upward trend from 1,184 million in 2018 to a peak of 2,074 million in 2020, suggesting increased capital expenditures and ongoing projects during this timeframe. However, the value notably decreased thereafter to 1,513 million in 2021 and further down to 1,123 million in 2022, potentially indicating project completions or reallocation of resources.

Property and equipment, gross

Gross property and equipment values grew steadily from 24,409 million in 2018 to 26,093 million in 2020, then declined sharply to 21,288 million in 2021, with a slight recovery to 21,704 million in 2022. This pattern reflects the net effect of capital investments and disposals, with a peak in 2020 followed by significant asset reductions or write-downs in 2021.

Accumulated depreciation and amortization

The accumulated depreciation and amortization increased in absolute value from -9,255 million in 2018 to -10,984 million in 2020, indicating continuous aging and usage of assets. A decrease in the absolute amount to -9,438 million in 2021 was observed, which could point to asset disposals or impairments reducing the accumulated depreciation. The figure rose again to -10,253 million in 2022, suggesting resumed depreciation.

Property and equipment, net

Net property and equipment values decreased from 15,154 million in 2018 to 14,844 million in 2019 and showed a modest increase to 15,109 million in 2020. However, a significant decline occurred in 2021 to 11,850 million, with a further decrease to 11,451 million in 2022. The net decline illustrates that asset disposals, depreciation, or impairments outpaced acquisitions and improvements after 2020.

In summary, the overall trend indicates growth and investment in property, plant, and equipment up to 2020, followed by considerable asset reductions, depreciation adjustments, and reduced net asset values in the subsequent two years. This shift may reflect strategic divestment, asset impairment, or changes in operational focus, with a notable contraction in both gross and net property values after 2020.

Average age ratio

The average age ratio shows a consistent upward trend over the analyzed period, increasing from 38.96% at the end of 2018 to 48.24% by the end of 2022. This indicates that the property, plant, and equipment portfolio is aging steadily, with nearly half of the estimated useful life utilized by 2022. Such progression suggests an increasing portion of assets reaching mature stages of their service life.

Estimated total useful life

The estimated total useful life fluctuated slightly across the years, ranging between 20 and 22 years. This variability may reflect changes in asset composition, technology updates, or reassessments of asset longevity. Notably, the useful life was highest in 2018 and 2020 at 22 years, declined to 20 years in 2021, and slightly increased to 21 years in 2022, showing minor adjustments rather than a dramatic shift.

Estimated age, time elapsed since purchase

The estimated age generally exhibits a gradual increment over the period, moving from 8 years in 2018 to 10 years in 2020, briefly decreasing to 9 years in 2021, and returning to 10 years in 2022. The slight dip in 2021 could suggest the acquisition of newer assets or disposal of older assets during that year, momentarily reducing the average age.

Estimated remaining life

The estimated remaining life mostly declines over the observed years, from 13 years at the end of 2018 to 11 years in 2022, with a minor increase back to 13 years noted in 2020. This pattern aligns logically with the aging of assets. The reduction in remaining life confirms ongoing asset utilization, with fewer years left as assets grow older, despite occasional adjustments likely due to asset management decisions.

Property and Equipment, Gross

The gross value of property and equipment shows a general increase from US$24,409 million in 2018 to a peak of US$26,093 million in 2020. However, this value declines notably in 2021 to US$21,288 million and remains relatively stable in 2022 at US$21,704 million. This suggests a significant reduction in asset additions or disposals occurring around 2021, possibly due to asset sales, write-downs, or lower capital expenditures during that period.

Accumulated Depreciation and Amortization

Accumulated depreciation increases from US$9,255 million in 2018 to US$10,984 million in 2020, showing a steady accumulation of depreciation over the initial three years. In 2021, there is an unexpected decrease to US$9,438 million, followed by an increase again to US$10,253 million in 2022. The dip in 2021 might indicate asset disposals or adjustments in depreciation policies, which temporarily reduced total accumulated depreciation.

Land and Improvements

The value of land and improvements remains relatively stable but slightly declines over the period, from US$651 million in 2018 to US$450 million in 2022. The drop is more pronounced between 2020 and 2021. This trend could reflect strategic divestments of land holdings or impairments related to land assets during this timeframe.

Average Age Ratio

The average age ratio of property and equipment shows a consistent upward trend from 38.96% in 2018 to 48.24% in 2022. This steady increase indicates that the property and equipment base is aging over time without proportional new investment or replacement, which may imply a need for future capital expenditures to maintain asset quality and operational efficiency.

Gross Property and Equipment

The gross value of property and equipment exhibited an increasing trend from 2018 through 2020, rising from $24,409 million to $26,093 million. However, this was followed by a notable decline in 2021 to $21,288 million, with a slight recovery to $21,704 million in 2022. This pattern suggests a period of asset expansion followed by asset disposals, impairments, or revaluation adjustments during 2021, with a modest increase thereafter.

Land and Improvements

Values for land and improvements remained relatively stable from 2018 to 2020, fluctuating only slightly around the mid-600 million range. A significant decline occurred in 2021 to $449 million, with minimal change in 2022. This pronounced drop may indicate disposal or reclassification of land assets during 2021, aligning with the broader reduction in gross property and equipment observed in the same period.

Depreciation Expense

Depreciation expense showed a gradual increase in the first two years, moving from $1,100 million in 2018 to $1,150 million in 2019, remaining steady at $1,140 million in 2020. From 2021 onward, depreciation expense declined to $1,020 million and further slightly to $1,010 million in 2022. This downward trend corresponds with the reductions in gross property and equipment, implying lower depreciation charges likely due to asset disposals or a decrease in capitalized assets.

Estimated Total Useful Life

The estimated total useful life of property and equipment has fluctuated between 20 and 22 years over the reported periods without a clear trend. It decreased from 22 years in 2018 to 21 years in 2019, reverting to 22 years in 2020, then decreased to 20 years in 2021 before returning to 21 years in 2022. These small variations could reflect adjustments in asset life estimates due to changes in asset composition or revised management policies.

Accumulated depreciation and amortization

The accumulated depreciation and amortization showed an overall increasing trend from US$9,255 million in 2018 to US$10,984 million in 2020. A decline is observed in 2021, decreasing to US$9,438 million, followed by an increase again in 2022 to US$10,253 million. This pattern indicates growing depreciation expenses over the initial years, a drop in 2021 which might reflect asset disposals, impairments, or adjustments, and a recovery in 2022.

Depreciation expense

The annual depreciation expense remained relatively stable but showed a gradual decrease over the period. It started at US$1,100 million in 2018, peaked slightly at US$1,150 million in 2019, and then declined steadily to US$1,010 million by 2022. This reduction suggests either changes in the asset base, possibly fewer capital additions, or adjustments in the depreciation methods or useful lives.

Time elapsed since purchase

The average time elapsed since purchase increased from 8 years in 2018 to 10 years by 2020, remained stable in 2021, and returned to 10 years in 2022. This indicates that the assets have aged on average, and minimal new asset acquisitions or replacements may have occurred within this timeframe.

Property and equipment, net

The net value of property and equipment showed relative stability between 2018 and 2020, fluctuating slightly around the 15,000 million US$ mark. However, starting in 2021, there was a noticeable decline, dropping from 15,109 million US$ in 2020 to 11,850 million US$ in 2021, and further to 11,451 million US$ in 2022. This downward trend reflects a significant reduction of approximately 24% over the two-year period, suggesting possible asset disposals, impairments, or reduced capital expenditures during these years.

Land and improvements

The value of land and improvements remained relatively consistent from 2018 through 2020, maintaining a level near 650 million US$. In 2021, there was a marked decrease to 449 million US$, which stabilized in 2022 at 450 million US$. This represents a reduction of about 31% compared to previous years, indicating potential sales or reclassification of land assets during this timeframe.

Depreciation expense

Depreciation expense exhibited a gradual increase from 1,100 million US$ in 2018 to a peak of 1,150 million US$ in 2019, followed by a slight decline to 1,140 million US$ in 2020. From 2021 onwards, depreciation expense decreased more significantly, falling to 1,020 million US$ and then 1,010 million US$ in 2022. This downward trend corresponds with the reduction in net property and equipment values, consistent with a shrinking asset base leading to lower annual depreciation charges.

Estimated remaining life

The estimated remaining life of the property and equipment showed a gradual decrease over the period, starting at 13 years in 2018, declining to 12 years in 2019, then increasing slightly back to 13 years in 2020, before decreasing again to 11 years in 2021, where it remained in 2022. This minor variability suggests ongoing asset aging and possibly changes in asset composition or depreciation estimates but generally reflects an aging asset base with reduced remaining useful life over time.