Analysis of Property, Plant and Equipment
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- Statement of Comprehensive Income
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Selected Financial Data since 2005
- Aggregate Accruals
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Property, Plant and Equipment Disclosure
Advanced Micro Devices Inc., balance sheet: property, plant and equipment
US$ in millions
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
Over the five-year period, significant growth is observed in property, plant, and equipment. The most substantial increases are noted in land, building and leasehold improvements, and equipment, indicating a period of considerable investment in fixed assets. Construction in progress also demonstrates a consistent upward trend, suggesting ongoing expansion projects.
- Gross Property and Equipment
- Gross property and equipment increased substantially from US$1,836 million in 2021 to US$4,928 million in 2025. This represents a compound annual growth rate of approximately 26.8%. The largest single-year increase occurred between 2022 and 2023, with an addition of US$356 million. Growth continued, albeit at a slightly slower pace, through 2025.
- Land, Building and Leasehold Improvements
- Land, building and leasehold improvements experienced a dramatic increase from US$206 million in 2021 to US$967 million in 2025. The most significant jump occurred between 2021 and 2022, increasing by US$508 million. While growth continued in subsequent years, the rate of increase moderated. This suggests a focused investment in real estate and related improvements.
- Equipment
- Equipment values rose consistently from US$1,534 million in 2021 to US$3,453 million in 2025. This represents a compound annual growth rate of approximately 21.7%. The largest single-year increase in equipment occurred between 2023 and 2024, with an addition of US$452 million. This indicates a continuous investment in production capabilities.
- Construction in Progress
- Construction in progress increased steadily from US$96 million in 2021 to US$508 million in 2025. This consistent growth suggests a sustained commitment to expanding facilities and infrastructure. The increase between 2024 and 2025 was particularly notable, adding US$184 million, potentially indicating the nearing completion of significant projects.
- Accumulated Depreciation
- Accumulated depreciation increased consistently alongside gross property and equipment, rising from US$1,134 million in 2021 to US$2,616 million in 2025. This is expected as assets age and are utilized. The rate of increase in accumulated depreciation appears to be relatively consistent with the growth in gross assets.
- Net Property and Equipment
- Net property and equipment increased significantly from US$702 million in 2021 to US$2,312 million in 2025. This growth, while substantial, is less pronounced than the growth in gross property and equipment, due to the offsetting effect of accumulated depreciation. The compound annual growth rate for net property and equipment is approximately 26.4%.
In summary, the figures demonstrate a substantial and sustained investment in property, plant, and equipment. The increases across all categories suggest a period of expansion and modernization. The consistent growth in construction in progress indicates ongoing projects that are expected to contribute to future capacity.
Asset Age Ratios (Summary)
Advanced Micro Devices Inc., asset age ratios
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
The analysis reveals evolving characteristics regarding the property, plant, and equipment asset base over a five-year period. A notable shift is observed in the average age ratio, coupled with changes in estimated useful life and remaining asset life.
- Average Age Ratio
- The average age ratio decreased significantly from 61.76% in 2021 to 49.90% in 2022. Following this substantial decline, the ratio experienced a moderate increase to 52.93% in 2023, then to 54.67% in 2024, before settling at 53.08% in 2025. This suggests an initial rejuvenation of the asset base, followed by a period of stabilization and slight aging.
- Estimated Useful Life
- The estimated total useful life of the assets has generally increased over the period. Starting at 6 years in 2021, it rose to 7 years in 2022, and then continued to increase to 8 years in 2023. The useful life stabilized at 9 years in both 2024 and 2025. This indicates a potential shift towards acquiring assets with longer expected operational durations or a reassessment of existing asset lifecycles.
- Estimated Age and Remaining Life
- The estimated age, representing the time elapsed since purchase, increased steadily from 4 years in 2021 to 5 years in both 2024 and 2025. Concurrently, the estimated remaining life initially increased from 2 years in 2021 to 3 years in 2022, then to 4 years in 2023, and remained constant at 4 years for 2024 and 2025. The stabilization of remaining life, despite the increasing age, is consistent with the lengthening of the estimated total useful life.
Overall, the asset base appears to be undergoing a transition towards newer, longer-lasting equipment. The initial decrease in the average age ratio, combined with the increasing estimated useful life, suggests strategic investment in modernizing the asset portfolio. The subsequent stabilization of these metrics indicates a maturing asset base with predictable lifecycles.
Average Age
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Accumulated depreciation | ||||||
| Property and equipment, gross | ||||||
| Asset Age Ratio | ||||||
| Average age1 | ||||||
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
2025 Calculations
1 Average age = 100 × Accumulated depreciation ÷ Property and equipment, gross
= 100 × ÷ =
An examination of the financial information reveals trends in accumulated depreciation, gross property and equipment, and the resulting average age ratio over a five-year period. Accumulated depreciation consistently increased throughout the period, rising from US$1,134 million in 2021 to US$2,616 million in 2025. Simultaneously, gross property and equipment experienced substantial growth, increasing from US$1,836 million in 2021 to US$4,928 million in 2025. The average age ratio exhibited fluctuations but remained relatively stable overall.
- Accumulated Depreciation
- Accumulated depreciation demonstrated a consistent upward trajectory throughout the observed period. The increase accelerated between 2022 and 2023, and again between 2023 and 2024, suggesting a higher rate of asset consumption during those years. This growth is expected given the concurrent increase in gross property and equipment.
- Gross Property and Equipment
- Gross property and equipment showed significant expansion, particularly between 2021 and 2022, with a value increase of US$1,184 million. While growth continued in subsequent years, the rate of increase moderated. This suggests a period of substantial investment followed by more measured additions to the asset base.
- Average Age Ratio
- The average age ratio decreased notably from 61.76% in 2021 to 49.90% in 2022, indicating a relative rejuvenation of the asset base. The ratio then increased to 54.67% in 2024 before decreasing slightly to 53.08% in 2025. The fluctuations suggest changes in the composition of property and equipment, with newer assets being added at varying rates. Despite these changes, the ratio remained within a relatively narrow range between 49.90% and 54.67% from 2022 onwards, suggesting a degree of stability in the overall age profile of the assets.
The combined trends suggest a strategy of ongoing investment in property and equipment, coupled with the expected depreciation of those assets. The relatively stable average age ratio in recent years indicates a balanced approach to asset management, where new investments are offsetting the aging of existing assets.
Estimated Total Useful Life
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
2025 Calculations
1 Estimated total useful life = Property and equipment, gross ÷ Depreciation expense
= ÷ =
Over the five-year period examined, property and equipment, gross experienced consistent growth, while depreciation expense also increased annually. Simultaneously, the estimated total useful life of these assets exhibited an initial increase followed by stabilization.
- Gross Property and Equipment
- The gross value of property and equipment more than doubled, increasing from US$1,836 million in 2021 to US$4,928 million in 2025. This represents a significant expansion of the asset base over the period. The rate of increase appears to have accelerated in the later years, with larger absolute increases observed between 2023 and 2025 compared to earlier periods.
- Depreciation Expense
- Depreciation expense demonstrated a consistent upward trend, rising from US$296 million in 2021 to US$521 million in 2025. This increase is expected given the growth in gross property and equipment. The increase in depreciation expense was relatively consistent year-over-year, suggesting a stable depreciation method application.
- Estimated Total Useful Life
- The estimated total useful life of property and equipment increased from 6 years in 2021 to 8 years in 2023, then remained constant at 9 years for 2024 and 2025. This initial lengthening of the useful life could indicate changes in the types of assets being acquired, improvements in asset maintenance, or a revision of depreciation policies. The subsequent stabilization suggests a mature assessment of asset longevity.
The combination of increasing gross property and equipment, rising depreciation expense, and an initially increasing, then stable, estimated useful life suggests a period of significant investment in assets, coupled with a refined understanding of their long-term value. The stabilization of the estimated useful life at 9 years may provide a more predictable depreciation pattern in future periods.
Estimated Age, Time Elapsed since Purchase
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
2025 Calculations
1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= ÷ =
Analysis reveals a consistent increase in accumulated depreciation over the five-year period. Simultaneously, depreciation expense also demonstrates an upward trajectory, though with some moderation in the rate of increase. The reported time elapsed since purchase fluctuates, suggesting potential complexities in asset acquisition timing or reporting methodology.
- Accumulated Depreciation
- Accumulated depreciation increased steadily from US$1,134 million in 2021 to US$2,616 million in 2025. This represents a cumulative increase of approximately 130.3% over the period. The largest single-year increase occurred between 2022 and 2023, with an addition of US$280 million. The rate of increase appears to be accelerating, with increases of US$489 million between 2023 and 2025.
- Depreciation Expense
- Depreciation expense rose from US$296 million in 2021 to US$521 million in 2025, an increase of approximately 75.7%. The growth rate decelerated over time. The largest increase in depreciation expense was observed between 2021 and 2022 (US$143 million). Subsequent annual increases were more moderate, ranging from US$3 to US$82 million.
- Time Elapsed Since Purchase
- The reported time elapsed since purchase initially decreased from 4 years in 2021 to 3 years in 2022, then increased to 4 years in 2023. It remained at 5 years for both 2024 and 2025. This pattern suggests a mix of new asset acquisitions and the continued depreciation of existing assets. The decrease in 2022 could indicate a significant number of recent purchases, while the stabilization at 5 years in the latter years suggests a more consistent acquisition pattern or a shift in the composition of the asset base.
The consistent rise in both accumulated depreciation and depreciation expense indicates ongoing utilization and aging of the asset base. The fluctuation in the reported time elapsed since purchase warrants further investigation to understand the company’s asset acquisition and disposal strategies. The accelerating increase in accumulated depreciation, coupled with a moderating increase in depreciation expense, could suggest a potential need to evaluate the remaining useful lives of the assets.
Estimated Remaining Life
Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).
2025 Calculations
1 Estimated remaining life = Property and equipment, net ÷ Depreciation expense
= ÷ =
Property and equipment, net, exhibited a substantial and consistent increase over the five-year period. Depreciation expense also increased annually, though at a slower rate than the growth in net property and equipment. The estimated remaining life of these assets initially increased and then stabilized.
- Net Property and Equipment
- The value of net property and equipment more than tripled, rising from 702 US$ million in 2021 to 2,312 US$ million in 2025. The most significant increase occurred between 2021 and 2022, with a jump of 811 US$ million. Growth continued in subsequent years, though at a decreasing rate of increase. This suggests substantial investment in property, plant, and equipment during this period.
- Depreciation Expense
- Depreciation expense increased from 296 US$ million in 2021 to 521 US$ million in 2025. While consistently rising, the percentage increase year-over-year diminished as the period progressed. This is expected, as depreciation is typically calculated based on the value of the asset base, and the rate of growth in the asset base slowed.
- Estimated Remaining Life
- The estimated remaining life of the property and equipment increased from 2 years in 2021 to 4 years in 2023, and remained constant at 4 years through 2025. The initial increase could indicate recent acquisitions of newer assets or a reassessment of the useful lives of existing assets. The stabilization at 4 years suggests a consistent expectation regarding the longevity of the current asset base.
The combination of increasing net property and equipment and rising depreciation expense indicates ongoing investment and the recognition of asset consumption. The lengthening and subsequent stabilization of the estimated remaining life suggests a shift towards a more durable asset base.