Stock Analysis on Net
Stock Analysis on Net

Visa Inc. (NYSE:V)

Analysis of Property, Plant and Equipment

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Property, Plant and Equipment Disclosure

Visa Inc., balance sheet: property, plant and equipment

US$ in millions

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Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016
Land 72  71  71  69  72  74 
Buildings and building improvements 1,008  1,007  965  898  865  839 
Furniture, equipment and leasehold improvements 2,048  1,997  1,913  1,661  1,534  1,382 
Construction-in-progress 226  163  180  153  139  125 
Technology 4,320  3,923  3,441  2,916  2,533  2,378 
Property, equipment and technology, gross 7,674  7,161  6,570  5,697  5,143  4,798 
Accumulated depreciation and amortization (4,959) (4,424) (3,875) (3,225) (2,890) (2,648)
Property, equipment and technology, net 2,715  2,737  2,695  2,472  2,253  2,150 

Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30).

Item Description The company
Property, equipment and technology, 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. Visa Inc. property, equipment and technology, gross increased from 2019 to 2020 and from 2020 to 2021.
Property, equipment and technology, 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. Visa Inc. property, equipment and technology, net increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Asset Age Ratios (Summary)

Visa Inc., asset age ratios

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Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016
Average age ratio 65.23% 62.40% 59.62% 57.30% 56.99% 56.05%
Estimated total useful life (years) 11 10 11 10 10 10
Estimated age, time elapsed since purchase (years) 7 6 7 6 6 6
Estimated remaining life (years) 4 4 4 4 4 5

Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30).

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 fixed asset base is old or new. Newer assets are likely to be more efficient. Visa Inc. 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 depreciation policy and can be used for comparisons with competitors. Visa Inc. estimated total useful life of depreciable property, plant and equipment decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Visa Inc. 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 Visa Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2019 to 2020 and from 2020 to 2021.

Average Age

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Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization 4,959  4,424  3,875  3,225  2,890  2,648 
Property, equipment and technology, gross 7,674  7,161  6,570  5,697  5,143  4,798 
Land 72  71  71  69  72  74 
Asset Age Ratio
Average age1 65.23% 62.40% 59.62% 57.30% 56.99% 56.05%

Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30).

2021 Calculations

1 Average age = 100 × Accumulated depreciation and amortization ÷ (Property, equipment and technology, gross – Land)
= 100 × 4,959 ÷ (7,674 – 72) = 65.23%

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 fixed asset base is old or new. Newer assets are likely to be more efficient. Visa Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2019 to 2020 and from 2020 to 2021.

Estimated Total Useful Life

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Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016
Selected Financial Data (US$ in millions)
Property, equipment and technology, gross 7,674  7,161  6,570  5,697  5,143  4,798 
Land 72  71  71  69  72  74 
Depreciation and amortization expense related to property, equipment and technology 721  687  596  558  500  452 
Asset Age Ratio (Years)
Estimated total useful life1 11 10 11 10 10 10

Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30).

2021 Calculations

1 Estimated total useful life = (Property, equipment and technology, gross – Land) ÷ Depreciation and amortization expense related to property, equipment and technology
= (7,674 – 72) ÷ 721 = 11

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. Visa Inc. estimated total useful life of depreciable property, plant and equipment decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.

Estimated Age, Time Elapsed since Purchase

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Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016
Selected Financial Data (US$ in millions)
Accumulated depreciation and amortization 4,959  4,424  3,875  3,225  2,890  2,648 
Depreciation and amortization expense related to property, equipment and technology 721  687  596  558  500  452 
Asset Age Ratio (Years)
Time elapsed since purchase1 7 6 7 6 6 6

Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30).

2021 Calculations

1 Time elapsed since purchase = Accumulated depreciation and amortization ÷ Depreciation and amortization expense related to property, equipment and technology
= 4,959 ÷ 721 = 7

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Visa Inc. 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

Microsoft Excel LibreOffice Calc
Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017 Sep 30, 2016
Selected Financial Data (US$ in millions)
Property, equipment and technology, net 2,715  2,737  2,695  2,472  2,253  2,150 
Land 72  71  71  69  72  74 
Depreciation and amortization expense related to property, equipment and technology 721  687  596  558  500  452 
Asset Age Ratio (Years)
Estimated remaining life1 4 4 4 4 4 5

Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30).

2021 Calculations

1 Estimated remaining life = (Property, equipment and technology, net – Land) ÷ Depreciation and amortization expense related to property, equipment and technology
= (2,715 – 72) ÷ 721 = 4

Asset age ratio Description The company
Estimated remaining life Visa Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2019 to 2020 and from 2020 to 2021.