Analysis of Property, Plant and Equipment
Property, Plant and Equipment Disclosure
Target Corp., balance sheet: property, plant and equipment
US$ in millions
Based on: 10-K (filing date: 2021-03-10), 10-K (filing date: 2020-03-11), 10-K (filing date: 2019-03-13), 10-K (filing date: 2018-03-14), 10-K (filing date: 2017-03-08), 10-K (filing date: 2016-03-11).
| Item | Description | The company |
|---|---|---|
| Property and equipment, gross | Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. | Target Corp.’s property and equipment, gross increased from 2019 to 2020 and from 2020 to 2021. |
| Property and equipment, net | Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. | Target Corp.’s property and equipment, net increased from 2019 to 2020 and from 2020 to 2021. |
Asset Age Ratios (Summary)
Target Corp., asset age ratios
Based on: 10-K (filing date: 2021-03-10), 10-K (filing date: 2020-03-11), 10-K (filing date: 2019-03-13), 10-K (filing date: 2018-03-14), 10-K (filing date: 2017-03-08), 10-K (filing date: 2016-03-11).
| Asset age ratio | Description | The company |
|---|---|---|
| Average age ratio | As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient. | Target Corp.’s average age ratio of depreciable property, plant and equipment deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Estimated total useful life | Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. | Target Corp.’s estimated total useful life of depreciable property, plant and equipment decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
| Estimated time elapsed since purchase | The approximate age in years of a company’s fixed assets. Useful for comparison purposes. | Target Corp.’s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Estimated remaining life | Target Corp.’s estimated remaining life of depreciable property, plant and equipment decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
Average Age
Based on: 10-K (filing date: 2021-03-10), 10-K (filing date: 2020-03-11), 10-K (filing date: 2019-03-13), 10-K (filing date: 2018-03-14), 10-K (filing date: 2017-03-08), 10-K (filing date: 2016-03-11).
2021 Calculations
1 Average age = 100 × Accumulated depreciation ÷ (Property and equipment, gross – Land)
= 100 × 20,278 ÷ (47,157 – 6,141) = 49.44%
| Asset age ratio | Description | The company |
|---|---|---|
| Average age | As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient. | Target Corp.’s average age ratio of depreciable property, plant and equipment deteriorated from 2019 to 2020 and from 2020 to 2021. |
Estimated Total Useful Life
Based on: 10-K (filing date: 2021-03-10), 10-K (filing date: 2020-03-11), 10-K (filing date: 2019-03-13), 10-K (filing date: 2018-03-14), 10-K (filing date: 2017-03-08), 10-K (filing date: 2016-03-11).
2021 Calculations
1 Estimated total useful life = (Property and equipment, gross – Land) ÷ Depreciation expense
= (47,157 – 6,141) ÷ 2,500 = 16
| Asset age ratio | Description | The company |
|---|---|---|
| Estimated total useful life | Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. | Target Corp.’s estimated total useful life of depreciable property, plant and equipment decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
Estimated Age, Time Elapsed since Purchase
Based on: 10-K (filing date: 2021-03-10), 10-K (filing date: 2020-03-11), 10-K (filing date: 2019-03-13), 10-K (filing date: 2018-03-14), 10-K (filing date: 2017-03-08), 10-K (filing date: 2016-03-11).
2021 Calculations
1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 20,278 ÷ 2,500 = 8
| Asset age ratio | Description | The company |
|---|---|---|
| Estimated time elapsed since purchase | The approximate age in years of a company’s fixed assets. Useful for comparison purposes. | Target Corp.’s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Estimated Remaining Life
Based on: 10-K (filing date: 2021-03-10), 10-K (filing date: 2020-03-11), 10-K (filing date: 2019-03-13), 10-K (filing date: 2018-03-14), 10-K (filing date: 2017-03-08), 10-K (filing date: 2016-03-11).
2021 Calculations
1 Estimated remaining life = (Property and equipment, net – Land) ÷ Depreciation expense
= (26,879 – 6,141) ÷ 2,500 = 8
| Asset age ratio | Description | The company |
|---|---|---|
| Estimated remaining life | Target Corp.’s estimated remaining life of depreciable property, plant and equipment decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |