Visa Inc. (NYSE:V)

The data exhibits various changes in property, plant, and equipment components over the six-year period from 2017 to 2022. Overall, there is a clear upward trend in the net value of property, equipment, and technology.

Land

The land value remains relatively stable, fluctuating only slightly between 69 million and 72 million US dollars, indicating no significant acquisitions or disposals during the period.

Buildings and building improvements

This category shows a gradual increase from 865 million in 2017 to a peak of 1008 million in 2021, followed by a slight decline to 1003 million in 2022. The steady increase suggests moderate investments in building infrastructure, with minimal reduction in the most recent year.

Furniture, equipment, and leasehold improvements

There is a consistent and notable rise over the years, starting at 1,534 million in 2017 and reaching 2,230 million in 2022. This represents a substantial growth in these assets, likely supporting operational enhancements or expansions.

Construction-in-progress

The values increase from 139 million in 2017 to 285 million in 2022, with some fluctuations such as a small dip in 2020. The growth indicates ongoing capital projects and investments not yet completed or capitalized.

Technology

The technology assets exhibit the most significant rise, growing from 2,533 million in 2017 to 5,291 million in 2022. This more than doubling reflects substantial investment in technology development and acquisition, underpinning the company's focus on technological advancement.

Property, equipment and technology, gross

The overall gross value of these assets increases steadily from 5,143 million in 2017 to 8,881 million in 2022, consistent with the contributions from the above categories, indicating continuous capital expenditure commitments.

Accumulated depreciation and amortization

The accumulated depreciation and amortization increase in magnitude from -2,890 million in 2017 to -5,658 million in 2022. This reflects ongoing wear, usage, and amortization of assets, consistent with the expanding asset base.

Property, equipment and technology, net

The net value after depreciation (gross less accumulated depreciation) shows a moderate growth from 2,253 million in 2017 to 3,223 million in 2022. While the growth is positive, it is slower compared to gross asset increases, reflecting the impact of depreciation and asset aging over time.

In summary, the financial data indicates a strategic emphasis on increasing technology-related assets and continuous investment in furniture, equipment, and building improvements. Construction-in-progress also signals active development projects. The stable land value suggests limited change in real estate holdings. Despite growing accumulated depreciation, the net asset value has shown consistent improvement, underscoring expanding capital assets overall.

The analysis of the annual property, plant, and equipment data reveals a consistent pattern over the observed periods from 2017 to 2022.

Average Age Ratio

The average age ratio shows a steady increase from 56.99% in 2017 to a peak of 65.23% in 2021, followed by a slight decline to 64.23% in 2022. This trend indicates that the assets are aging gradually over these years, suggesting an increase in the proportion of the total useful life already utilized.

Estimated Total Useful Life

The estimated total useful life remains mostly stable at around 10 to 11 years throughout the period. Specifically, it was 10 years in 2017 and 2018, increased to 11 years in 2019, reverted to 10 years in 2020, and then stabilized again at 11 years in 2021 and 2022. This reflects a minor adjustment in the expected asset longevity.

Estimated Age (Time Elapsed Since Purchase)

The estimated age of the assets shows a pattern alternating between 6 and 7 years across the periods, which aligns with the passing years and suggests consistent asset replacement or acquisition timing relative to depreciation schedules.

Estimated Remaining Life

The estimated remaining life remains constant at 4 years for all periods observed. This indicates a stable expectation of how much longer the assets will be productive or in use.

Overall, the data reflects a steady aging of the property, plant, and equipment portfolio, with minor adjustments in estimated total useful life. The constancy in remaining life suggests that asset management practices are maintaining a balance between asset aging and replacement.

The data on property, plant, and equipment reveals notable changes and trends over the six-year period ending in 2022.

Property, equipment, and technology, gross

This asset category consistently increased each year, growing from $5,143 million in 2017 to $8,881 million in 2022. The upward trend indicates ongoing investments and acquisitions related to property, equipment, and technology, suggesting expansion or modernization efforts.

Accumulated depreciation and amortization

Accumulated depreciation and amortization rose steadily from $2,890 million in 2017 to $5,658 million in 2022. The nearly doubling of this figure aligns with the increase in gross assets but also reflects the aging of assets and the recognition of depreciation expenses over time.

Land

The value of land remained relatively stable throughout the period, fluctuating minimally between $69 million and $72 million. This stability suggests limited acquisition or disposal of land assets during these years.

Average age ratio

The average age ratio of the property, plant, and equipment increased from approximately 57% in 2017 to a peak of 65.23% in 2021, before slightly declining to 64.23% in 2022. This ratio indicates the proportion of the asset base that is aged relative to its useful life, suggesting that the overall asset pool was becoming older through 2021, with a modest reversal in 2022 potentially due to asset renewals or disposals.

Overall, the data points to sustained capital investment contributing to growth in gross property and equipment, accompanied by a steady rise in accumulated depreciation and an aging asset base, with a minor indication of rejuvenation in the most recent year. The stable land value implies limited changes in that specific asset category.

Property, Equipment, and Technology, Gross

There is a consistent upward trend in the gross value of property, equipment, and technology over the period analyzed. The value increased from US$5,143 million in 2017 to US$8,881 million in 2022, representing significant growth. This indicates ongoing investment in these assets by the company.

Land

The value of land remained relatively stable, fluctuating slightly between US$69 million and US$72 million throughout the years. This indicates that there was minimal acquisition or disposal of land assets during the period, contributing little to the overall changes in gross property and equipment.

Depreciation and Amortization Expense Related to Property, Equipment, and Technology

The depreciation and amortization expense also shows a steady increase from US$500 million in 2017 to US$771 million in 2022. This rise corresponds with the growing gross asset base and reflects the higher consumption of the assets' economic benefits over time.

Estimated Total Useful Life

The estimated total useful life of the assets remained mostly consistent, at around 10 to 11 years, indicating stable assumptions regarding the expected service period of the company's property, equipment, and technology assets.

Accumulated Depreciation and Amortization

The accumulated depreciation and amortization of property, plant, and equipment shows a consistent upward trend over the period from 2017 to 2022. It increased from 2,890 million US dollars in 2017 to 5,658 million US dollars in 2022, indicating ongoing consumption and aging of the fixed assets. The steady rise suggests continual allocation of depreciation expenses each year without any significant asset disposals reducing the accumulated amount.

Depreciation and Amortization Expense

The annual depreciation and amortization expense related to property, equipment, and technology has progressively increased each year. Beginning at 500 million US dollars in 2017, the expense rose to 771 million US dollars by 2022. This gradual increase reflects either additions to the asset base or changes in the amortization schedules and depreciation methods. The expense growth pace is moderate but consistent, aligning with the rising accumulated depreciation balance.

Time Elapsed Since Purchase

The average time elapsed since purchase of the assets remained relatively stable, fluctuating slightly between 6 and 7 years over the six-year period. This stability implies the company maintains a consistent asset replacement or upgrade cycle without significant variation in asset holding periods. The average asset age suggests that the majority of property, plant, and equipment are mid-life, neither particularly new nor nearing full depreciation.

Overall Insights

The data indicates that the company operates with a steady maintenance and investment strategy in property, plant, and equipment. The rising accumulated depreciation and increasing annual depreciation expense show ongoing asset utilization and investment rather than asset write-downs or impairments. Maintaining a stable asset age profile suggests disciplined asset renewal practices, balancing acquisition with depreciation, which helps sustain operational capacity and technological relevance over time.

The analysis of the annual data related to property, plant, and equipment and associated depreciation reveals several notable trends over the six-year period ending September 30, 2022.

Net Property, Equipment, and Technology Value

There is a general upward trend in the net value of property, equipment, and technology. Starting at US$2,253 million in 2017, the figure increased steadily each year, reaching US$3,223 million in 2022. The most significant increase occurred between 2021 and 2022.

Land Value

The value attributed to land remains relatively stable throughout the period, fluctuating minimally between US$69 million and US$72 million. This consistency suggests limited acquisition or disposal of land assets during these years.

Depreciation and Amortization Expense

There is a clear upward trajectory in depreciation and amortization expenses related to property, equipment, and technology. The expense grew from US$500 million in 2017 to US$771 million in 2022, indicating an increasing allocation of cost recognition associated with these assets over time. The increase appears steady each year, reflecting continual usage and aging of assets.

Estimated Remaining Life

The estimated remaining life of the assets consistently remains at 4 years throughout the period. This suggests a stable asset depreciation policy or a consistent approach to asset lifecycle assessment by the company.

In summary, the net asset value of property, equipment, and technology demonstrates steady growth over the observed period, complemented by consistent depreciation policies and stable land asset values. The rising depreciation expenses align with the increasing net asset base, reflecting the ongoing investment and utilization of tangible assets within the company's operations.