Monsanto Co. (NYSE:MON)

The financial data reveals a consistent upward trend in the company's investment in property, plant, and equipment over the six-year period ending in 2017. Each category demonstrates growth, reflecting ongoing capital expenditures and asset expansion.

Land and Improvements

The value of land and improvements increased steadily from $536 million in 2012 to $677 million in 2017. This represents a gradual but continuous appreciation of about 26% over the period, indicating ongoing acquisitions or enhancements in land assets.

Buildings and Improvements

Buildings and improvements rose from $1,919 million in 2012 to $2,358 million in 2017. The increase appears steady, with no significant volatility, suggesting planned investments in infrastructure supporting operations.

Machinery and Equipment

Machinery and equipment showed a consistent growth trajectory from $5,057 million to $6,210 million during the period. Although there was a slight dip in 2015, the overall trend is positive, highlighting the company's sustained investment in operational capacity and modernization.

Computer Software

Computer software assets increased notably from $643 million to $1,166 million, reflecting a near doubling over six years. This underscores a strategic emphasis on technological capabilities and digital transformation initiatives.

Construction in Progress and Other

This category experienced the most significant relative growth, expanding from $680 million to $1,820 million. The marked increase especially after 2014 suggests a high level of ongoing capital projects and future asset additions under development.

Property, Plant and Equipment, Gross

The aggregate gross value of property, plant, and equipment rose from $8,835 million in 2012 to $12,231 million in 2017. This overall increase of approximately 38.5% indicates substantial capital expansion and investment activity.

Accumulated Depreciation

Accumulated depreciation grew in absolute terms from -$4,470 million to -$6,301 million, reflecting the aging of assets and the passage of time, but is proportionate to the asset base growth.

Property, Plant and Equipment, Net

Net property, plant, and equipment values displayed consistent growth except for a slight decline in 2015, moving from $4,365 million in 2012 to $5,930 million in 2017. The net increase of about 36% confirms the company’s overall asset base expansion after accounting for depreciation.

In summary, the data reflects a strong and sustained capital investment strategy focused on expanding and modernizing physical and technological assets. The rising values across all categories, especially in construction in progress and software, indicate anticipation of future operational growth and adaptation to evolving technological needs.

The average age ratio of property, plant, and equipment exhibits a relatively stable trend over the six-year period examined. Starting at 53.86% in 2012, this ratio shows a slight upward movement, peaking at 56.2% in 2016. This indicates a gradual aging of the asset base during these years. However, in 2017, the average age ratio declines to 54.54%, suggesting some renewal or replacement activities occurred, potentially indicating increased investment in newer assets or disposal of older ones.

Overall, the data reflect a consistent maintenance of asset age with minor fluctuations, implying a relatively balanced approach towards asset utilization and replacement within the company’s property, plant, and equipment segment.

The financial data on property, plant, and equipment over the six fiscal years reveals several notable trends and patterns. A consistent increase is observed in both accumulated depreciation and the gross value of property, plant, and equipment, indicating ongoing capital investment coupled with asset aging.

Accumulated Depreciation

Accumulated depreciation steadily increased from $4,470 million in 2012 to $6,301 million by 2017. This growth reflects the continuing usage and aging of the company’s fixed assets. The rise appears relatively linear, signifying consistent depreciation practices without abrupt changes or impairments.

Property, Plant and Equipment, Gross

The gross value of property, plant, and equipment grew from $8,835 million in 2012 to $12,231 million in 2017. This consistent upward movement suggests the company engaged in progressive asset acquisition or capital improvements during this period. The increase was particularly notable between 2015 and 2017, indicating possibly accelerated investments or expansions.

Land and Improvements

Values for land and improvements also rose but at a more modest pace, increasing from $536 million in 2012 to $677 million in 2017. The relatively small incremental changes suggest limited new land acquisitions or improvements, which is typical given that land is a non-depreciable asset and purchased less frequently than other fixed assets.

Average Age Ratio

The average age ratio ranged between approximately 53.86% and 56.2% over the years, peaking in 2016 before declining slightly in 2017. This metric, indicative of the proportion of an asset’s useful life that has elapsed, suggests that while the asset base is aging moderately, the acquisition of new assets or asset retirements helped maintain a stable age profile by the end of the period.

Overall, the data reflects a pattern of steady investment supporting growth in property, plant, and equipment, paralleled by a consistent increase in accumulated depreciation. The stable average age ratio at mid-50% levels implies ongoing asset renewal efforts to balance ageing assets with new additions. The relatively subdued increase in land and improvements is consistent with typical fixed asset compositions.