Analysis of Property, Plant and Equipment
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Property, Plant and Equipment Disclosure
Moderna Inc., balance sheet: property, plant and equipment
US$ in millions
Based on: 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), 10-K (reporting date: 2019-12-31).
- Land and land improvements
- This category shows a late emergence in the data, with values reported only for the years ending 2022 and 2023. The value doubled from 11 million USD in 2022 to 22 million USD in 2023, indicating recent acquisition or capitalization activity in land assets.
- Manufacturing and laboratory equipment
- There is a consistent upward trend over the five-year period. Starting at 108 million USD in 2019, the value increased annually to reach 345 million USD by 2023. This suggests ongoing investment and expansion in manufacturing and laboratory capabilities.
- Leasehold improvements
- Values grew steadily each year, beginning at 152 million USD in 2019 and rising to 522 million USD by 2023, more than tripling over the period. This implies significant expenditures in property enhancements and facility improvements.
- Furniture and fixtures
- Although relatively small in absolute amounts, this category showed consistent growth, increasing from 3 million USD in 2019 to 26 million USD in 2023. The sustained increase suggests continuous furnishing and equipping of premises.
- Computer equipment and software
- This item exhibits a moderate upward trend initially, with gradual increments from 19 million USD in 2019 to 38 million USD in 2022, followed by a pronounced jump to 74 million USD in 2023. The sharp increase in the final year may reflect intensified investment in technology infrastructure or software assets.
- Construction in progress
- The data reveal accelerated growth in this category, with significant increases each year. Values rose from a minimal 3 million USD in 2019 to 860 million USD by 2023. This trajectory highlights substantial ongoing capital projects, indicating expansion or modernization efforts not yet completed.
- Right-of-use asset, financing
- A marked and rapid increase is observed here, starting at 10 million USD in 2019 and surging to a peak of 1,581 million USD in 2022, before decreasing to 529 million USD in 2023. This pattern may reflect the adoption and subsequent adjustment of lease accounting standards, with a decrease in the final year potentially indicating lease terminations, reclassifications, or amortization effects.
- Property, plant and equipment, gross
- Gross PPE experienced substantial growth over the period, rising from 296 million USD in 2019 to a peak of 2,676 million USD in 2022, followed by a decline to 2,378 million USD in 2023. The dramatic increase until 2022 aligns with asset additions noted in categories such as construction in progress and right-of-use assets. The decline in 2023 suggests disposals, reclassifications, or impairments affecting the gross value.
- Accumulated depreciation
- Accumulated depreciation increased in absolute value from -95 million USD in 2019 to a high of -658 million USD in 2022 but decreased to -433 million USD in 2023. The increase over the initial years is typical as assets age, but the decline in 2023 is unusual and might indicate asset disposals, revaluation, or changes in depreciation methods.
- Property, plant and equipment, net
- Net PPE reflected significant growth from 2019 through 2022, expanding from 201 million USD to 2,018 million USD. There was a slight decrease to 1,945 million USD in 2023. Overall, the upward trend indicates robust capital investment and asset base expansion, albeit tempered in the final year possibly due to increased depreciation, disposals, or asset impairments relative to additions.
Asset Age Ratios (Summary)
Moderna Inc., asset age ratios
Based on: 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), 10-K (reporting date: 2019-12-31).
- Average Age Ratio
- The average age ratio demonstrates a downward trend over the observed period, decreasing from 31.95% in 2019 to 18.38% in 2023. This indicates a relative reduction in the age of the property, plant, and equipment, suggesting newer asset acquisitions or replacement of older assets over time.
- Estimated Total Useful Life
- The estimated total useful life values fluctuate significantly, starting at 10 years in 2019, increasing to 13 years in 2020, then decreasing sharply to 7 years in 2021, 8 years in 2022, and further declining to 4 years in 2023. This variability implies revisions in asset life assumptions, possibly due to changes in asset composition or updated management estimates regarding asset longevity.
- Estimated Age, Time Elapsed Since Purchase
- The estimated age of assets presents slight inconsistencies: it increased from 3 years in 2019 to 4 years in 2020, then decreased to 2 years in both 2021 and 2022, followed by a further decrease to 1 year in 2023. Such a pattern reflects periods of new acquisitions or asset replacements, lowering the average age of the asset base.
- Estimated Remaining Life
- The estimated remaining life shows a moderately fluctuating but generally decreasing trend. It started at 6 years in 2019, rose to 9 years in 2020, declined to 5 years in 2021, increased again slightly to 6 years in 2022, and finally dropped to 3 years in 2023. This pattern may indicate varying asset replacement schedules or adjustments to asset life expectations consistent with the changes in total useful life estimates.
Average Age
Based on: 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), 10-K (reporting date: 2019-12-31).
2023 Calculations
1 Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, gross – Land and land improvements)
= 100 × ÷ ( – ) =
- Property, Plant, and Equipment Gross
- The gross value of property, plant, and equipment exhibited a significant upward trend over the period from 2019 to 2022, increasing from 296 million USD to a peak of 2,676 million USD. However, in 2023, this value decreased to 2,378 million USD, suggesting a reduction in acquisitions or disposals.
- Accumulated Depreciation
- Accumulated depreciation steadily increased from 95 million USD in 2019 to 658 million USD in 2022, reflecting ongoing asset usage and aging. In 2023, a notable decline to 433 million USD occurred, which could indicate asset disposals or revaluation adjustments.
- Land and Land Improvements
- Values for land and land improvements were recorded only in the last two years, starting at 11 million USD in 2022 and doubling to 22 million USD in 2023. This suggests recent investment or acquisition activity in this asset category.
- Average Age Ratio
- The average age ratio demonstrates a generally declining trend, decreasing from about 32% in 2019 to approximately 18% in 2023. This decline implies a younger asset base over time, likely due to recent investments and replacements offsetting depreciation effects.
- Overall Assessment
- The data indicates rapid asset growth between 2019 and 2022, followed by a reduction in gross property, plant, and equipment in 2023. Meanwhile, accumulated depreciation's decrease in the final year suggests notable asset turnover or adjustments. The new inclusion and growth of land assets in the last two years points to strategic expansions. Additionally, the declining average age ratio reflects a rejuvenation of the asset base, consistent with recent investments.
Estimated Total Useful Life
Based on: 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), 10-K (reporting date: 2019-12-31).
2023 Calculations
1 Estimated total useful life = (Property, plant and equipment, gross – Land and land improvements) ÷ Depreciation and amortization expense
= ( – ) ÷ =
- Property, Plant and Equipment, Gross
- The gross value of property, plant, and equipment exhibited a notable upward trend from 2019 to 2022, increasing steadily from $296 million in 2019 to a peak of $2,676 million in 2022. However, there was a decline in 2023, with the value decreasing to $2,378 million, indicating a possible reduction in capital expenditures or divestitures during that year.
- Land and Land Improvements
- Data on land and land improvements is only available for 2022 and 2023, showing growth from $11 million to $22 million. This doubling suggests recent acquisitions or enhancements of land assets within this period.
- Depreciation and Amortization Expense
- Depreciation and amortization expenses remained stable at $31 million for both 2019 and 2020 before rising sharply to $232 million in 2021 and continuing to increase to $348 million in 2022. In 2023, the expense nearly doubled again to $617 million. This substantial escalation corresponds to the growth in gross property, plant, and equipment, reflecting increased depreciation due to expanded asset bases and potentially accelerated amortization policies.
- Estimated Total Useful Life
- The estimated total useful life of assets showed a fluctuating pattern, beginning at 10 years in 2019 and increasing slightly to 13 years in 2020. However, it then declined to 7 years in 2021, followed by 8 years in 2022, and dropped further to 4 years in 2023. This downward trend may indicate a shift towards assets with shorter service lives or a revision in asset life estimates, which would impact depreciation rates and expense recognition.
- Overall Insights
- The data indicates significant investment in property, plant, and equipment leading to an expanded asset base primarily between 2019 and 2022, accompanied by increasing depreciation expenses consistent with asset growth. The decrease in asset gross value in 2023 alongside a steep increase in depreciation expense and a shortening of estimated useful lives suggests a strategic adjustment, possibly involving asset disposition or accelerated depreciation methodologies. The additional data on land improvements underscores recent enhancements in fixed asset holdings.
Estimated Age, Time Elapsed since Purchase
Based on: 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), 10-K (reporting date: 2019-12-31).
2023 Calculations
1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation and amortization expense
= ÷ =
- Accumulated Depreciation
- The accumulated depreciation shows an overall increasing trend from US$95 million in 2019 to a peak of US$658 million in 2022, followed by a significant decrease to US$433 million in 2023. This pattern suggests substantial asset depreciation buildup over the initial years, with a notable reduction in the last reported year, which may indicate asset disposals or adjustments.
- Depreciation and Amortization Expense
- The depreciation and amortization expense remained steady at US$31 million for both 2019 and 2020. It then sharply increased to US$232 million in 2021, further rising to US$348 million in 2022, and reaching US$617 million in 2023. This consistent upward trend reflects growing amortization and depreciation charges, potentially due to recent capital expenditures or assets coming into service.
- Time Elapsed Since Purchase
- The time elapsed since purchase generally decreases from 4 years in 2020 to 1 year in 2023, indicating a shift towards newer assets in the portfolio. The decline suggests recent acquisitions of property, plant, and equipment, correlating with increased depreciation expenses as new assets are being depreciated.
- Overall Insights
- The data indicates a company that has invested in relatively new assets, which is evident from the decreasing average asset age and increasing depreciation expenses. The sharp rise and subsequent fall in accumulated depreciation in 2022 and 2023 respectively may point to significant asset refreshment or disposals. The increases in depreciation and amortization expenses support the inference of increased capital expenditures or asset additions during these years.
Estimated Remaining Life
Based on: 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), 10-K (reporting date: 2019-12-31).
2023 Calculations
1 Estimated remaining life = (Property, plant and equipment, net – Land and land improvements) ÷ Depreciation and amortization expense
= ( – ) ÷ =
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment exhibited a significant upward trend from 2019 to 2022, increasing from $201 million to $2,018 million. This represents a nearly tenfold increase over the four-year period. However, in 2023, there was a slight decline to $1,945 million. The overall trend indicates substantial investment in fixed assets through 2022, with a minor reduction in the most recent year.
- Land and Land Improvements
- Data on land and land improvements is absent for the years prior to 2022. Starting in 2022, the recorded value was $11 million, which doubled to $22 million in 2023. This suggests recent acquisition or capitalization of land-related assets beginning in 2022, with continued growth in the subsequent year.
- Depreciation and Amortization Expense
- Depreciation and amortization expense remained constant at $31 million for 2019 and 2020. Starting in 2021, the expense increased substantially to $232 million, followed by further increases to $348 million in 2022 and $617 million in 2023. This pattern reflects accelerated recognition of asset depreciation, likely associated with the significant additions to property, plant, and equipment in prior periods.
- Estimated Remaining Life
- The estimated remaining life of the property, plant, and equipment fluctuated over the period, starting at 6 years in 2019, increasing to 9 years in 2020, then declining to 5 years in 2021, 6 years in 2022, and reaching 3 years in 2023. The decreasing trend in later years may indicate aging assets or accelerated asset turnover, which aligns with increased depreciation expenses and recent asset additions.