Analysis of Property, Plant and Equipment
Property, Plant and Equipment Disclosure
Lowe’s Cos. Inc., balance sheet: property, plant and equipment
US$ in millions
Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).
| Item | Description | The company |
|---|---|---|
| Property, cost | 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. | Lowe’s Cos. Inc. property, cost decreased from 2022 to 2023 but then slightly increased from 2023 to 2024. |
| Property, less accumulated depreciation | 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. | Lowe’s Cos. Inc. property, less accumulated depreciation decreased from 2022 to 2023 but then slightly increased from 2023 to 2024. |
Asset Age Ratios (Summary)
Lowe’s Cos. Inc., asset age ratios
Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).
| 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. | Lowe’s Cos. Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2022 to 2023 and from 2023 to 2024. |
| 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. | Lowe’s Cos. Inc. estimated total useful life of depreciable property, plant and equipment decreased from 2022 to 2023 but then slightly increased from 2023 to 2024. |
| Estimated time elapsed since purchase | The approximate age in years of a company fixed assets. Useful for comparison purposes. | Lowe’s Cos. Inc. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
| Estimated remaining life | Lowe’s Cos. Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2022 to 2023 but then slightly increased from 2023 to 2024. |
Average Age
Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).
2024 Calculations
1 Average age = 100 × Accumulated depreciation ÷ (Property, cost – Land)
= 100 × 18,117 ÷ (35,770 – 6,785) = 62.50%
| 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. | Lowe’s Cos. Inc. average age ratio of depreciable property, plant and equipment deteriorated from 2022 to 2023 and from 2023 to 2024. |
Estimated Total Useful Life
Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).
2024 Calculations
1 Estimated total useful life = (Property, cost – Land) ÷ Depreciation expense
= (35,770 – 6,785) ÷ 1,900 = 15
| 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. | Lowe’s Cos. Inc. estimated total useful life of depreciable property, plant and equipment decreased from 2022 to 2023 but then slightly increased from 2023 to 2024. |
Estimated Age, Time Elapsed since Purchase
Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).
2024 Calculations
1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 18,117 ÷ 1,900 = 10
| 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. | Lowe’s Cos. Inc. estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
Estimated Remaining Life
Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).
2024 Calculations
1 Estimated remaining life = (Property, less accumulated depreciation – Land) ÷ Depreciation expense
= (17,653 – 6,785) ÷ 1,900 = 6
| Asset age ratio | Description | The company |
|---|---|---|
| Estimated remaining life | Lowe’s Cos. Inc. estimated remaining life of depreciable property, plant and equipment decreased from 2022 to 2023 but then slightly increased from 2023 to 2024. |