Analysis of Property, Plant and Equipment
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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Common Stock Valuation Ratios
- Current Ratio since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
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Property, Plant and Equipment Disclosure
Lockheed Martin 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).
The financial data related to property, plant, and equipment exhibits a consistent upward trend across most categories over the five-year period.
- Land
- The value of land remains relatively stable, with minor fluctuations, moving slightly from 142 million USD in 2020 to 143 million USD by 2024. This indicates limited changes or acquisitions in land assets during this time frame.
- Buildings
- Building assets show a steady increase throughout the period, rising from 7,425 million USD in 2020 to 9,624 million USD in 2024. This represents a significant growth, suggesting ongoing investments or capital improvements in buildings.
- Machinery and Equipment
- Similar to buildings, machinery and equipment values grow consistently from 8,661 million USD in 2020 to 10,399 million USD in 2024. The growth reflects continued equipment upgrades or acquisitions, supporting operational capacity.
- Construction in Progress
- Values for construction in progress fluctuate slightly but remain roughly stable, starting at 1,921 million USD in 2020 and finishing at 2,053 million USD in 2024. This indicates ongoing but steady activity in projects not yet completed or capitalized.
- Property, Plant, and Equipment, Gross
- The gross value of property, plant, and equipment rises steadily from 18,149 million USD in 2020 to 22,219 million USD in 2024, reflecting cumulative investments across all asset categories.
- Accumulated Depreciation
- Accumulated depreciation increases consistently in magnitude from -10,936 million USD in 2020 to -13,493 million USD in 2024. This growth aligns with the increasing asset base and indicates regular depreciation charges over time.
- Property, Plant, and Equipment, Net
- The net book value of property, plant, and equipment shows a steady increase from 7,213 million USD in 2020 to 8,726 million USD in 2024. This net growth after depreciation implies ongoing investment that outpaces asset depreciation, contributing to an expanding asset base.
Overall, the data reveals a pattern of continuous investment and asset growth in buildings and machinery, controlled activity in construction projects, and consistent depreciation, leading to a solid increase in net property, plant, and equipment value over the five years under review.
Asset Age Ratios (Summary)
Lockheed Martin 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 remains relatively stable over the observed period, with a minor increase from 60.73% in 2020 to 61.12% in 2024. This indicates that the proportion of the asset life that has been used is consistently just over 60%, reflecting a steady aging profile of property, plant, and equipment.
- Estimated Total Useful Life
- The estimated total useful life of the assets shows a gradual upward trend, increasing from 21 years in 2020 and 2021 to 23 years by 2023 and 2024. This suggests a reassessment of asset longevity, potentially due to improved maintenance practices or changes in asset composition that extend the expected lifespan.
- Estimated Age (Time Elapsed Since Purchase)
- The estimated age of the assets remains mostly constant at 13 years from 2020 through 2022, then rises slightly to 14 years in 2023 and 2024. This slow increase aligns with the passage of time but indicates limited turnover or replacement of assets during the period.
- Estimated Remaining Life
- The estimated remaining life of assets stays stable at 8 years from 2020 to 2021, and increases to 9 years from 2022 onward. This improvement reflects the effect of the increased total useful life, offsetting the natural aging of the assets and suggesting a maintained or improved condition of the asset base.
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 ÷ (Property, plant and equipment, gross – Land)
= 100 × ÷ ( – ) =
- Accumulated Depreciation
- The accumulated depreciation consistently increased each year from 10,936 million US dollars in 2020 to 13,493 million US dollars in 2024. This steady growth indicates ongoing depreciation of existing assets and suggests continuous usage and aging of the property, plant, and equipment over the analyzed period.
- Property, Plant and Equipment, Gross
- Gross property, plant, and equipment values rose from 18,149 million US dollars in 2020 to 22,219 million US dollars in 2024, reflecting sustained investment in physical assets. The increase is gradual and consistent, implying a steady expansion or replacement activity related to fixed assets.
- Land
- The reported value of land remained relatively stable, showing minimal fluctuation from 142 million US dollars in 2020 to 143 million US dollars in 2024. This stability suggests limited acquisition or disposal of land assets during this timeframe.
- Average Age Ratio
- The average age ratio of assets showed a slight upward trend, moving from 60.73% in 2020 to 61.12% in 2024. This gradual increase indicates that, on average, the fixed assets are aging slightly over time, possibly due to acquisition rates that do not fully offset asset depreciation and retirement.
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, gross – Land) ÷ Depreciation expense related to plant and equipment
= ( – ) ÷ =
- Property, plant and equipment, gross
- The gross value of property, plant, and equipment showed a consistent upward trend over the five-year period. It increased steadily each year from US$18,149 million at the end of 2020 to US$22,219 million by the end of 2024. This represents a gradual annual growth, indicating ongoing investment or acquisition of plant assets.
- Land
- The value of land remained relatively stable throughout the period, fluctuating marginally between US$142 million and US$147 million, with a slight decrease in the final two years down to US$143 million. This stability suggests minimal changes or disposals in land holdings.
- Depreciation expense related to plant and equipment
- Depreciation expenses increased moderately over the five years, from US$853 million in 2020 to US$967 million in 2024. The yearly figures show a consistent rise, highlighting the aging of existing assets along with the impact of new acquisitions that are subject to depreciation.
- Estimated total useful life
- The estimated total useful life of the property, plant, and equipment extended gradually from 21 years at the start of the period to 23 years in the last two years. This increase may reflect adjustments in accounting estimates or improvements in asset durability and technological upgrades.
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 ÷ Depreciation expense related to plant and equipment
= ÷ =
- Accumulated Depreciation
- The accumulated depreciation amount exhibits a consistent upward trend over the five-year period. It increases steadily from 10,936 million US dollars in 2020 to 13,493 million US dollars in 2024. This indicates a continuous allocation of depreciation expense over the years, reflecting ongoing wear and tear or aging of the property, plant, and equipment assets.
- Depreciation Expense Related to Plant and Equipment
- The annual depreciation expense remains relatively stable throughout the period, with a slight upward trajectory. It rises from 853 million US dollars in 2020 to 967 million US dollars in 2024. The marginal increase suggests consistent usage or renewal of assets, possibly influenced by new asset additions or changes in depreciation methods while maintaining a steady rate of expense recognition.
- Time Elapsed Since Purchase
- The average age of the plant and equipment is fairly constant at 13 years for the first three years, then slightly increases to 14 years in 2023 and 2024. This indicates that the asset base is aging gradually, with some possible additions or disposals insufficient to significantly alter the average age of assets.
- Overall Analysis
- The data reveals a mature asset base with depreciation progressing steadily. The consistent increase in accumulated depreciation aligns with the stable depreciation expense, indicating no major fluctuations in asset acquisition or retirement. The slight increase in the average asset age further supports the conclusion that the asset portfolio is aging steadily without substantial renewal or expansion during this period.
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, net – Land) ÷ Depreciation expense related to plant and equipment
= ( – ) ÷ =
- Property, Plant, and Equipment, Net
- There is a consistent upward trend in the net value of property, plant, and equipment over the five-year period. The value increased steadily from $7,213 million in 2020 to $8,726 million in 2024, reflecting ongoing investments or capital expenditures exceeding depreciation and disposals.
- Land
- The value of land remains relatively stable throughout the period, fluctuating minimally between $142 million and $147 million. This suggests little to no acquisition or disposal activity related to land assets, indicating its value is maintained but not a significant growth area within property assets.
- Depreciation Expense Related to Plant and Equipment
- Depreciation expense shows a moderate upward trend, rising from $853 million in 2020 to $967 million in 2024. This gradual increase is consistent with the growing net property and equipment base, indicating that as more assets are capitalized, depreciation recognized also increases proportionally.
- Estimated Remaining Life
- The estimated remaining life of the assets has remained stable at 8 years initially and then increased slightly to 9 years from 2022 onwards. This suggests either changes in asset composition favoring longer-lived assets or revisions to depreciation schedules extending the asset life assumptions.