Analysis of Property, Plant and Equipment
Paying user area
Try for free
UnitedHealth Group Inc. pages available for free this week:
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Dividend Discount Model (DDM)
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to UnitedHealth Group Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Property, Plant and Equipment Disclosure
UnitedHealth Group Inc., balance sheet: property, plant and equipment
US$ 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).
- Land and Improvements
- The value of land and improvements exhibited variability over the observed period. It declined from 533 million USD in 2020 to 502 million USD in 2021, indicating a reduction in investment or revaluation. Subsequently, a notable increase occurred in 2022 and 2023, reaching 712 million USD, before sharply decreasing to 364 million USD in 2024. This pattern suggests fluctuations possibly related to acquisitions, disposals, or reclassification.
- Buildings and Improvements
- The buildings and improvements category showed a general upward trend from 4759 million USD in 2020 to 5573 million USD in 2023, reflecting continued capital expenditures or revaluations. However, a significant decline was observed in 2024, dropping to 4215 million USD. This decrease could indicate disposals, impairments, or shifts in asset utilization.
- Computer Equipment
- Computer equipment values steadily increased from 1767 million USD in 2020 to 2093 million USD in 2022. A slight dip to 2007 million USD occurred in 2023, followed by a recovery to 2267 million USD in 2024. These fluctuations imply ongoing investments with occasional adjustments or write-downs.
- Furniture and Fixtures
- Furniture and fixtures demonstrated an increasing trend from 1787 million USD in 2020 to a peak of 2375 million USD in 2023. A marked decrease then took place in 2024, falling to 1694 million USD. This decline could be indicative of disposals or shifts in capital allocation.
- Capitalized Software
- Capitalized software showed consistent and strong growth throughout the period, escalating from 5010 million USD in 2020 to 8984 million USD in 2024. This upward trajectory highlights significant and sustained investment in software development or acquisitions, emphasizing the company's focus on technology assets.
- Property, Equipment and Capitalized Software, Gross
- The gross value of property, equipment, and capitalized software rose steadily from 13856 million USD in 2020 to a peak of 18489 million USD in 2023. A slight contraction to 17524 million USD was noted in 2024. The overall increase reflects ongoing capital investments, tempered by the reduction in 2024 which may be related to asset disposals or changes in capitalization policies.
- Accumulated Depreciation and Amortization
- Accumulated depreciation and amortization displayed a consistent increase in magnitude from -5230 million USD to -7039 million USD between 2020 and 2023, representing the systematic allocation of cost over asset useful lives. A minor decrease in absolute value to -6971 million USD occurred in 2024, which may reflect asset retirements or changes in depreciation estimates.
- Property, Equipment and Capitalized Software, Net
- Net property, equipment and capitalized software values increased from 8626 million USD in 2020 to 11450 million USD in 2023, demonstrating asset base growth after accounting for depreciation. The figure then declined to 10553 million USD in 2024, indicating a reversal or slowdown in net asset accumulation possibly due to impairments, disposals, or reduced capital spending.
Asset Age Ratios (Summary)
UnitedHealth Group Inc., 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 experienced a gradual increase from 39.26% in 2020 to a peak of 42.36% in 2022. Following this peak, the ratio declined to 39.6% in 2023 but showed a slight rebound to 40.62% in 2024. This pattern suggests a temporary aging of the property, plant, and equipment assets, followed by modest renewal or replacement activity.
- Estimated Total Useful Life
- The estimated total useful life of the assets increased from 7 years in 2020 to 8 years beginning in 2021 and remained stable at 8 years through 2023. In 2024, the estimate reverted to 7 years. This fluctuation could reflect reassessments of asset longevity or changes in the asset composition impacting overall expected lifespan.
- Estimated Age Since Purchase
- The estimated age, representing time elapsed since purchase, remained constant at 3 years across the entire period. This indicates a consistent approach to aging assumptions or steady asset acquisition timing without significant aging variance.
- Estimated Remaining Life
- The estimated remaining life remained steady at 4 years from 2020 through 2022, increased to 5 years in 2023, and then declined back to 4 years in 2024. The temporary increase in 2023 may denote a reassessment extending asset usability, while the subsequent decrease aligns with the shorter total useful life estimated for 2024.
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 and amortization ÷ (Property, equipment and capitalized software, gross – Land and improvements)
= 100 × ÷ ( – ) =
- Accumulated Depreciation and Amortization
- The accumulated depreciation and amortization figures demonstrate a consistent upward trend from 2020 to 2022, increasing from 5,230 million USD to 6,930 million USD. This suggests ongoing usage and aging of property, plant, and equipment during this period. However, in 2023 and 2024, the values stabilize around 7,039 million USD and 6,971 million USD, respectively, indicating a possible slowdown in asset aging or changes in depreciation methods.
- Property, Equipment, and Capitalized Software, Gross
- The gross value of property, equipment, and capitalized software steadily increased from 13,856 million USD in 2020 to a peak of 18,489 million USD in 2023, reflecting continued investments in fixed assets and software capitalization. In 2024, a decline to 17,524 million USD is noted, which might indicate asset disposals, write-downs, or slower acquisition activity during this latest year.
- Land and Improvements
- Values for land and improvements initially show modest fluctuation. Starting at 533 million USD in 2020, there is a decrease in 2021 followed by a peak at 712 million USD in 2023. A sharp decline to 364 million USD in 2024 is observed, which could derive from asset divestitures or reclassification impacting this specific category.
- Average Age Ratio
- The average age ratio indicates the relative age of the asset base. It gradually rises from 39.26% in 2020 to 42.36% in 2022, suggesting the asset portfolio is aging. Subsequently, it decreases to 39.6% in 2023 before slightly increasing again to 40.62% in 2024. These fluctuations imply a dynamic asset renewal or replacement strategy throughout the period.
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, equipment and capitalized software, gross – Land and improvements) ÷ Depreciation expense for property and equipment and amortization expense for capitalized software
= ( – ) ÷ =
- Property, Equipment, and Capitalized Software, Gross
- The gross value of property, equipment, and capitalized software showed an overall upward trend from 2020 through 2023, increasing from $13,856 million in 2020 to a peak of $18,489 million in 2023. However, there was a noticeable decline in 2024, with the value dropping to $17,524 million, indicating a reduction in gross assets after a period of growth.
- Land and Improvements
- The value of land and improvements exhibited fluctuations during the period. Initially, there was a decline from $533 million in 2020 to $502 million in 2021, followed by a substantial increase to $697 million in 2022 and a slight rise to $712 million in 2023. In 2024, a sharp decrease occurred, reducing the value to $364 million, which marks the lowest point in the five-year span. This suggests possible divestment or revaluation decisions related to land assets.
- Depreciation and Amortization Expense
- Depreciation and amortization expenses consistently increased each year, rising from $1,811 million in 2020 to $2,400 million in 2024. This steady escalation reflects ongoing wear and usage of property, equipment, and capitalized software, possibly indicative of a growing asset base and the corresponding allocation of costs over their useful lives.
- Estimated Total Useful Life
- The estimated total useful life of the assets remained relatively stable around 8 years from 2021 to 2023, with a slight decrease to 7 years noted in 2020 and again in 2024. These minor adjustments might reflect changes in asset composition or updated assessments of asset longevity that could influence depreciation policies.
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 and amortization ÷ Depreciation expense for property and equipment and amortization expense for capitalized software
= ÷ =
The analysis of the financial data related to property, plant, and equipment reveals several notable trends over the five-year period ending December 31, 2024.
- Accumulated Depreciation and Amortization
- There is a consistent upward trend in accumulated depreciation and amortization, increasing from 5,230 million US dollars in 2020 to a peak of 7,039 million US dollars in 2023. However, in 2024 this figure slightly decreased to 6,971 million US dollars. This pattern indicates ongoing asset depreciation but suggests a possible adjustment or reduction in asset base or estimation methods by the end of 2024.
- Depreciation and Amortization Expense
- The annual expense for depreciation of property and equipment along with amortization of capitalized software shows a steady increase throughout the period. Starting at 1,811 million US dollars in 2020, it rose consistently each year, reaching 2,400 million US dollars in 2024. This indicates increased investment or capital expenditures on depreciable or amortizable assets or changes in expense recognition policies.
- Time Elapsed Since Purchase
- The metric for time elapsed since purchase remains constant at 3 years across all periods. This suggests a stable average age of recorded assets, implying regular asset turnover or replacement cycles that maintain this average age consistently.
In summary, the data demonstrates steady growth in both accumulated depreciation and annual depreciation expenses, reflecting ongoing capital investment and asset usage. The consistent asset age indicates disciplined asset management, while the slight decline in accumulated depreciation in 2024 could point to asset disposals or changes in depreciation calculations.
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, equipment and capitalized software, net – Land and improvements) ÷ Depreciation expense for property and equipment and amortization expense for capitalized software
= ( – ) ÷ =
- Property, Equipment and Capitalized Software, Net
- The net value of property, equipment, and capitalized software experienced an overall upward trend from 2020 to 2023, increasing from 8,626 million US dollars to a peak of 11,450 million US dollars. However, in 2024, this value declined to 10,553 million US dollars, representing a notable decrease after several years of growth.
- Land and Improvements
- The value of land and improvements showed fluctuating trends over the period. Initial figures declined from 533 million in 2020 to 502 million in 2021, followed by a significant increase to 697 million in 2022 and a marginal rise to 712 million in 2023. In 2024, there was a sharp decline to 364 million, the lowest point in the five-year span.
- Depreciation and Amortization Expense
- Depreciation expense for property and equipment, together with amortization expense for capitalized software, consistently increased over the five years. The expense rose steadily from 1,811 million US dollars in 2020 to 2,400 million US dollars in 2024, reflecting ongoing consumption of asset value and possibly continuous capital investment.
- Estimated Remaining Life of Assets
- The estimated remaining life of the assets remained stable at 4 years from 2020 through 2022. There was a slight increase to 5 years in 2023, suggesting some lengthening of asset usability. However, this figure reverted back to 4 years in 2024, returning to the original estimated lifespan.