Oracle Corp. (NYSE:ORCL)

The data reveals significant trends in the property, plant, and equipment categories over a six-year period, showing notable growth across most asset classes and substantial changes in accumulated depreciation and net values.

Computer, network, machinery and equipment

There is a consistent and marked increase in this asset category, rising from $7,757 million in 2020 to $30,345 million in 2025. The growth accelerates particularly after 2022, indicating substantial investments or acquisitions in technology and machinery components.

Buildings and improvements

This category shows modest growth in the early years from $4,394 million in 2020 to approximately $4,734 million in 2021 and remains relatively stable through 2022. However, from 2023 onward, a sharp rise is observed, culminating in $10,881 million by 2025, suggesting increased capital expenditure in infrastructure.

Furniture, fixtures and other

This component experiences slight fluctuations but remains relatively stable overall, decreasing from $509 million in 2020 to $466 million in 2025. The minor changes imply minimal investment or replacement in this category.

Land

The land value remains fairly steady, starting at $885 million in 2020 and rising moderately to $1,352 million by 2025. This indicates gradual acquisition or revaluation over the period without significant volatility.

Construction in progress

There is a dramatic increase in construction in progress, from $280 million in 2020 to a peak of $16,510 million in 2025. The sharp escalation beginning in 2022 suggests active development projects and ongoing capital investments poised to increase future fixed assets.

Property, plant and equipment, gross

The gross value of property, plant, and equipment grows steadily from $13,825 million in 2020 to $59,554 million in 2025. This broad increase corresponds with the rises in individual asset classes, particularly in equipment, buildings, and construction in progress.

Accumulated depreciation

Accumulated depreciation increases in absolute terms (negative values) from -$7,581 million in 2020 to -$16,032 million in 2025, reflecting ongoing depreciation charges on existing assets. Although the net asset base expands, depreciation grows continuously, consistent with asset aging and expanded asset base.

Property, plant and equipment, net

The net book value of property, plant, and equipment experiences substantial growth, rising from $6,244 million in 2020 to $43,522 million in 2025. This indicates that despite depreciation, the company's investments and asset growth significantly enhance its net fixed assets.

In summary, the data points to an aggressive capital expenditure strategy, with major investments focused on technological equipment, building infrastructure, and construction projects. These investments have translated into strong growth in gross and net property, plant, and equipment values, supporting potential expansions or capacity increases. The consistent growth in accumulated depreciation aligns with the asset increases, reflecting normal asset utilization and aging over time. Furniture and land assets remain relatively stable, suggesting less focus in these areas.

Average Age Ratio

The average age ratio demonstrates a consistent downward trend from 58.59% in 2020 to 27.55% in 2025. This indicates a reduction in the relative age of the property, plant, and equipment over the analyzed period, suggesting that newer assets are being added or older equipment is being retired at an increasing pace.

Estimated Total Useful Life

The estimated total useful life of the assets shows some fluctuation, starting at 9 years in 2020, increasing to 10 years in 2021, returning to 9 years in 2022, then rising to 11 years in 2023 and 2024, and finally increasing significantly to 15 years in 2025. This suggests adjustments in asset lifespan expectations, possibly reflecting changes in asset types, technological upgrades, or revised management estimates for asset longevity.

Estimated Age (Time Elapsed Since Purchase)

The estimated age of assets remains relatively stable between 4 and 6 years throughout the period. There is a slight increase from 5 years in 2020 to 6 years in 2021, followed by a decrease to 4 years by 2024 and maintaining at 4 years in 2025. This implies a consistent refurbishment or replacement policy ensuring the assets are relatively current.

Estimated Remaining Life

The estimated remaining life exhibits growth over time, starting at 4 years in the initial years (2020-2022), increasing to 6 years during 2023 and 2024, and reaching 11 years in 2025. This pattern aligns with the increasing total useful life and lower average age ratio, highlighting a forward-looking extension of asset usability and suggesting ongoing investment in longer-lasting equipment.

Property, Plant, and Equipment, Gross

The gross value of property, plant, and equipment exhibited a consistent upward trend from 2020 to 2025. Starting at $13,825 million in 2020, the value increased steadily each year, reaching $59,554 million in 2025. This indicates significant investments in physical assets over the period, with the largest increments occurring between 2022 and 2025.

Accumulated Depreciation

Accumulated depreciation also rose continuously, reflecting the aging and usage of the company's assets. Beginning at $7,581 million in 2020, the figure increased annually to reach $16,032 million in 2025. The growth in accumulated depreciation is proportional to the increase in gross property, plant, and equipment, suggesting ongoing asset additions alongside aging of existing assets.

Land

The value of land showed minor fluctuations over the six-year period. Starting at $885 million in 2020, it experienced a slight decrease in 2021, then a moderate increase to $1,352 million by 2025. The relative stability in land value contrasts with the significant expansions seen in other asset categories, indicating land acquisitions or revaluations occurred at a moderate scale.

Average Age Ratio

The average age ratio, representing the proportion of accumulated depreciation relative to gross property, plant, and equipment, demonstrated a clear declining trend. From approximately 58.59% in 2020, it reduced steadily to 27.55% in 2025. This marked decrease suggests the asset base is becoming newer on average, likely due to substantial recent acquisitions or replacements that lower the overall average age of the assets.

Property, plant and equipment, gross

There is a clear upward trend in the gross property, plant, and equipment values over the observed period. Starting at 13,825 million US dollars in May 2020, the value increased steadily each year, reaching 59,554 million US dollars by May 2025. This represents a significant expansion, with an especially notable acceleration in growth between May 2023 and May 2025.

Land

The value attributed to land shows minor fluctuations with a generally stable pattern. It started at 885 million US dollars in May 2020, slightly decreased to 871 million in May 2021, and then gradually increased to 1,352 million US dollars by May 2025. Changes in land value are modest compared to the overall property, plant, and equipment growth.

Depreciation expense

The depreciation expense demonstrates a consistent upward trajectory across the years. Beginning at 1,382 million US dollars in May 2020, it escalated each year, reaching 3,867 million US dollars by May 2025. This increase reflects higher asset bases and possibly accelerated asset utilization or acquisition.

Estimated total useful life

The estimated total useful life of assets shows some variability, starting at 9 years in May 2020, slightly increasing to 10 years in May 2021, returning to 9 years in 2022, then rising to 11 years for 2023 and 2024, and finally extending to 15 years in May 2025. The increasing useful life estimates might indicate changes in asset composition, improvements in asset quality, or revised depreciation policies.

Accumulated Depreciation

The accumulated depreciation shows a consistent upward trend over the years, increasing from 7,581 million US dollars in 2020 to 16,032 million US dollars in 2025. This indicates ongoing depreciation charges and the aging of property, plant, and equipment assets. The growth rate in accumulated depreciation appears steady, reflecting continuous usage and systematic allocation of depreciation over the asset lifespans.

Depreciation Expense

Depreciation expense has risen substantially from 1,382 million US dollars in 2020 to 3,867 million US dollars in 2025. The increase is not only consistent but also accelerated, showing a growing charge against earnings. This may reflect higher investment in new assets with shorter useful lives or changes in depreciation methods. The increase in depreciation expense outpaces the increase in accumulated depreciation, signaling expanding asset base or faster depreciation rates.

Time Elapsed Since Purchase

The time elapsed since purchase fluctuates slightly but generally remains stable around 4 to 6 years. This relatively short and steady range suggests a relatively recent asset base with frequent updating or replacement cycles. The slight decrease in elapsed time in the later years indicates that newer assets are being added or older ones disposed of, contributing to higher depreciation expenses.

Summary

The data reveals a company with a continuously growing asset base as evidenced by rising accumulated depreciation and increasing annual depreciation expenses. The steady and relatively short asset age implies active asset management with regular renewals or replacements. Overall, the trends suggest expanding investment in property, plant, and equipment, resulting in higher depreciation charges that could impact profit margins but also indicate ongoing modernization or growth initiatives.

Property, Plant and Equipment, Net

The net value of property, plant, and equipment showed a substantial upward trend over the observed periods. Starting from US$6,244 million in May 2020, the value increased steadily each year, reaching US$43,522 million by May 2025. This indicates a significant investment or acquisition of assets, with especially notable increases between May 2022 and May 2023, and a sharp rise from May 2024 to May 2025.

Land

The value of land remained relatively stable compared to the total property, plant, and equipment. Beginning at US$885 million in May 2020, it exhibited minor fluctuations and ended at US$1,352 million in May 2025. The land value showed a mild increase overall but no large jumps relative to the total net property, plant, and equipment value, suggesting that the majority of growth is attributed to other asset types.

Depreciation Expense

Depreciation expense showed a consistent increase throughout the period. Starting at US$1,382 million in May 2020, it rose annually to US$3,867 million by May 2025. The steady rise corresponds with the growing asset base, reflecting higher consumption or wear of assets each year as the overall asset value expanded.

Estimated Remaining Life

The estimated remaining life of the assets experienced a notable increase from 4 years in the earlier periods (2020 to 2022) to 6 years in 2023 and 2024, and then a significant jump to 11 years in 2025. This suggests a shift towards acquiring longer-lived assets or a reassessment of asset lives, which could affect future depreciation expenses and indicate strategic changes in asset management.

Summary

Overall, the data reflects aggressive asset growth with a significant increase in net property, plant, and equipment value. The increase in depreciation expense aligns with the asset growth, while the estimated remaining life extension could indicate optimization or diversification in asset portfolio longevity. The relatively stable land value suggests that new asset investments are centered more on buildings, equipment, or other fixed assets rather than land acquisition.