Lowe’s Cos. Inc. (NYSE:LOW)

The analysis of the property, plant, and equipment data over the six-year period reveals several noteworthy trends and shifts.

Land

The value of land holdings remained relatively stable, starting at $7,200 million in early 2020 and showing only slight fluctuations, with a small decline in 2023 and 2024, before modestly increasing again in 2025 to reach $6,811 million. Overall, this line item demonstrates minimal volatility.

Buildings and building improvements

This asset category experienced moderate growth with some variability. The value increased from $17,862 million in 2020 to a peak of $18,433 million in 2022. Subsequently, there was a dip in 2023 to $17,784 million, but values rebounded in the following two years, reaching $18,386 million by 2025. The fluctuations may reflect ongoing investment and depreciation management in building assets.

Equipment

Equipment values showed a gradual increase from $10,377 million in 2020 to $10,533 million in 2022, but then declined noticeably to $9,541 million in 2023. This was followed by a recovery period, with values climbing back up to $10,988 million by 2025. This pattern suggests a period of asset replacement or disposal followed by reinvestment in equipment.

Construction in progress

The amounts for construction in progress varied year to year, starting at $506 million in 2020, peaking at $831 million in 2021, and then fluctuating downward to $616 million by 2025. These swings indicate projects advancing from construction phase into operational assets or potentially changing capital expenditure plans.

Property, cost

The total cost of property assets peaked at $36,959 million in 2022 before declining to $34,911 million in 2023 and then partially recovering to $36,801 million by 2025. This trend mirrors the movements in individual asset categories and points to shifts in asset acquisitions and disposals.

Accumulated depreciation

Accumulated depreciation steadily increased in absolute terms, moving from -$17,276 million in 2020 to -$19,152 million in 2025. The continuing rise reflects ongoing depreciation expenses, suggesting aging asset bases and consistent usage.

Property, less accumulated depreciation

Net property values declined from $18,669 million in 2020 to $17,071 million by 2023, stabilized around $17,653 million in 2024, and remained relatively flat at $17,649 million in 2025. This indicates that although gross property costs fluctuated, asset aging and depreciation pressures have somewhat offset gross investments, resulting in a stable but slightly lower net asset base over time.

In summary, the data reflects a property, plant, and equipment portfolio experiencing moderate investment activity with periods of asset replacement and depreciation growth. The net book value stability suggests careful management of capital assets with an emphasis on maintaining asset quality despite natural depreciation impacts.

Average Age Ratio

The average age ratio exhibits a gradual increase over the observed periods, rising from 60.1% in early 2020 to 63.86% by early 2025. This steady upward trend indicates that, on average, the property, plant, and equipment assets are aging, representing a growing proportion of their estimated total useful life used up.

Estimated Total Useful Life

The estimated total useful life of assets shows a noticeable decline over the years. Beginning at 21 years in 2020, it decreased to 15 years by 2023 and remains constant at 15 years through 2025. This contraction in asset lifespan estimation may reflect changes in asset usage, technology, or management’s reassessment of asset durability.

Estimated Age (Time Elapsed Since Purchase)

The estimated average age of assets, reflecting time elapsed since their acquisition, remains relatively stable overall but shows a slight decrease from 12 years in 2020 and 2021 to 9 years by 2023, followed by a small increase back to 10 years in 2024 and 2025. This pattern suggests the addition of newer assets around 2023, with some aging observed in subsequent years.

Estimated Remaining Life

The estimated remaining useful life of assets declines progressively from 8 years in 2020 and 2021 down to 5 years by 2025. This trend aligns with the decreasing total useful life estimates and the increasing average age ratio, indicating a shortening horizon for asset usability and potentially higher depreciation expenses in the future.

Accumulated Depreciation

The accumulated depreciation increased steadily over the analyzed period, rising from 17,276 million USD in early 2020 to 19,152 million USD by early 2025. There was a minor dip observed in 2023, where the value decreased to 17,344 million USD from 17,888 million USD in 2022, but the overall trend indicates ongoing asset aging and continued depreciation expenses.

Property, Cost

The total cost of property fluctuated over the years, starting at 35,945 million USD in 2020, peaking at 36,959 million USD in 2022, followed by a decline to 34,911 million USD in 2023 before recovering slightly to 36,801 million USD in 2025. This pattern suggests periodic capital expenditures coupled with occasional asset disposals or write-downs.

Land

The value attributed to land remained relatively stable throughout the period, with a slight decline from 7,200 million USD in 2020 to 6,811 million USD in 2025. The minimal change implies limited acquisition or disposal activity related to land assets.

Average Age Ratio

The average age ratio of the property, plant, and equipment showed a consistent upward trend, increasing from 60.1% in 2020 to 63.86% in 2025. This rising ratio indicates that the asset base is aging, which may imply increasing maintenance requirements or the need for future capital investment to renew older assets.

Overall Insights

The data reveals an aging asset base, supported by the increasing accumulated depreciation and average age ratio. While property costs fluctuate, the overall investment in physical assets appears to balance between asset additions and disposals. The stable land values suggest a steady approach to land asset management.

The financial data on property, plant, and equipment reveal several key trends over the six-year period under review. There is a general stability in the recorded costs of property assets, with values fluctuating slightly but remaining within a close range. The total property cost started at approximately $35.9 billion in early 2020 and experienced a minor decline by early 2023, before increasing again to about $36.8 billion by early 2025. This indicates a relatively stable investment or valuation of property assets over time, without significant expansions or disposals.

The land component, as a subset of total property costs, exhibits a downward trend after 2021. The value increased modestly from $7.2 billion in 2020 to $7.3 billion in 2021, but subsequently decreased to around $6.8 billion by 2024 and remained near that level in 2025. This reduction could imply partial sales, revaluations, or changes in the classification of land holdings.

Depreciation expense has risen steadily, starting at $1.4 billion in 2020 and escalating to $2.0 billion by 2025. The consistent increase in depreciation expense suggests either an aging asset base with accelerated depreciation methods or new assets coming into service with shorter useful lives contributing to higher annual depreciation charges. This trend reflects growing allocation of costs related to the consumption or wear of fixed assets.

The estimated total useful life of the property assets has decreased notably from 21 years in 2020 to about 15 years by 2023, holding steady at that level thereafter. The reduction in useful life estimation likely accounts for changes in asset composition, possibly from acquiring assets with shorter life spans or adjustments in accounting policies regarding asset depreciation. This shortening of useful life estimates coincides with the rise in depreciation expense, further supporting accelerated asset cost recognition.

Property Costs

Relatively stable, with minor fluctuations and a slight decline followed by recovery, indicating steady investment or valuation.

Land Value

Peaked in 2021 and declined thereafter, suggesting possible disposals or revaluation of land assets.

Depreciation Expense

Increasing consistently over the years, indicative of aging assets, new asset additions with shorter lives, or revised depreciation methods.

Estimated Useful Life

Declined from 21 years to 15 years, implying changes in asset composition or accounting assumptions affecting depreciation rates.

Accumulated Depreciation

The accumulated depreciation showed a steady increase overall, starting at 17,276 million USD in early 2020 and rising to 19,152 million USD by early 2025. There was a minor dip observed in early 2023, where the value declined to 17,344 million USD from 17,888 million USD in early 2022. However, this decrease was temporary, and the upward trend resumed thereafter. This indicates a general trend of growing depreciation expenses over time, reflecting either increased asset base or consistent application of depreciation policies.

Depreciation Expense

The depreciation expense exhibited a consistent upward trend throughout the five-year period examined. It rose from 1,400 million USD in 2020 to 2,000 million USD in 2025. The most notable increases occurred between 2020 and 2022, where the expense grew by 400 million USD. This rising expense points to an increase in depreciable asset values or modifications in depreciation methods or asset utilization patterns.

Time Elapsed Since Purchase

The time elapsed since purchase showed minor fluctuations but generally remained around 10 to 12 years over the reporting periods. It started at 12 years in both 2020 and 2021, then decreased to 9 years in 2023, before slightly increasing again to 10 years in subsequent years. This suggests some changes in the composition of the asset base, possibly due to acquisitions or retirements of assets, affecting the average age of property, plant, and equipment.

Summary Insights

The overall data indicates ongoing investments and/or sustained usage of property, plant, and equipment, as evidenced by the steady growth in accumulated depreciation and depreciation expense. The slight dip in accumulated depreciation in early 2023 may suggest asset disposals or revaluation. Meanwhile, the depreciation expense’s upward trajectory highlights expanding asset bases or adjustments in depreciation rates or estimates. The relatively stable time elapsed since purchase suggests a moderate asset turnover or renewal strategy during the observed periods.

Property, less accumulated depreciation

The net property value experienced a slight increase from 18,669 million USD in 2020 to a peak of 19,155 million USD in 2021. This was followed by a gradual decline to 17,649 million USD by 2025. The downward trend suggests ongoing depreciation surpassing any new property acquisitions or capital improvements during the later years.

Land

The land value remained relatively stable over the period, starting at 7,200 million USD in 2020 and ending at 6,811 million USD in 2025. Minor fluctuations occurred, with a slight dip noted after 2021, indicating limited acquisition or disposal of land assets.

Depreciation Expense

Depreciation expense increased consistently from 1,400 million USD in 2020 to 2,000 million USD in 2025. The steady rise indicates an accelerating recognition of property asset consumption or impairment expenses, possibly linked to asset aging or changes in depreciation policies.

Estimated Remaining Life

The estimated remaining useful life of the assets decreased from 8 years in 2020 and 2021 to 5 years by 2025. This reduction signals the aging of the property, plant, and equipment base, which corresponds with the increased depreciation expense and declining net property values.