Pearson (Pearson) Gross Property, Plant and Equipment

: $953 Mil (As of Dec. 2023)

View and export this data going back to 1996. Start your Free Trial

Pearson's quarterly gross PPE declined from Dec. 2022 ($994 Mil) to Jun. 2023 ($285 Mil) but then increased from Jun. 2023 ($285 Mil) to Dec. 2023 ($953 Mil).

Pearson's annual gross PPE stayed the same from Dec. 2021 ($1,297 Mil) to Dec. 2022 ($994 Mil) but then declined from Dec. 2022 ($994 Mil) to Dec. 2023 ($953 Mil).

Pearson Gross Property, Plant and Equipment Historical Data

The historical data trend for Pearson's Gross Property, Plant and Equipment can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Pearson Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Property, Plant and Equipment

1,499.35

1,446.24

1,296.54

993.91

953.17

Pearson Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Property, Plant and Equipment																1,296.54	359.61	993.91	285.35	953.17

Pearson Gross Property, Plant and Equipment Calculation

Property, Plant and Equipment (PPE) are the fixed assets of the company. Fixed assets are also known as non-current assets.

Property, plant, and equipment includes assets that will - in the normal course of business - neither be used up in the next year nor will become a part of any product sold to customers.

Some of the most common parts of property, plant, and equipment are:

Land
Buildings (and leasehold improvements)
Transportation equipment
Manufacturing equipment
Office equipment
Office furniture

Companies with lots of property, plant, and equipment often have special categories. For example, railroad property includes:

Track
Ties
Ballast
Bridges
Tunnels
Signals
Locomotives
Freight Cars

There is often a note in the financial statements - found in a company's 10-K - that will explain the different categories of property a company owns.

The market value of property, plant, and equipment can differ tremendously from the book value of property, plant, and equipment.

For example, when Berkshire Hathaway liquidated its textile mills, it had to pay the buyers of the company's manufacturing equipment to haul the equipment away. That property, plant, and equipment was literally worth less than zero. On the other hand, some companies own thousands of acres of land.

All property, plant, and equipment other than land is depreciated. Land is never depreciated. However, land is not marked up to market value either. Under Generally Accepted Accounting Principles (GAAP), land is shown on the balance sheet at cost.

The property, plant, and equipment line shown on the balance sheet is usually net property, plant, and equipment. This means it is the cost of the property, plant, and equipment less accumulated depreciation.

Pearson (NYSE:PSO) Gross Property, Plant and Equipment Explanation

A company with durable competitive advantage doesn't need to constantly upgrade its equipment to stay competitive. The company replaces when it wears out. On the other hand, a company without any advantages must replace to keep pace.

Difference between a company with a moat and one without is that the company with the competitive advantage finances new equipment through internal cash flows, whereas the no advantage company requires debt to finance.

Producing a consistent product that doesn't change equates to consistent profits. There is no need to upgrade plants which frees up cash for other ventures. Think Coca Cola, Johnson & Johnson etc.

Pearson Gross Property, Plant and Equipment Related Terms

Thank you for viewing the detailed overview of Pearson's Gross Property, Plant and Equipment provided by GuruFocus.com. Please click on the following links to see related term pages.

Pearson (Pearson) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Pearson PLC (NYSE:PSO) » Definitions » Gross Property, Plant and Equipment

Comparable Companies

Traded in Other Exchanges

PSORF:USA PSONl:UK PSON:UK PES:Germany PES:Germany PESA:Germany PES:Germany

Address

80 Strand, London, GBR, WC2R 0RL

Website

https://plc.pearson.com

U.K.-listed Pearson is the world's largest educational provider. The company has been disposing of noncore businesses such as the Financial Times, The Economist, and publishing house Penguin, and is now focused on being an educational resource and testing provider. While Pearson's primary activity centres on higher-level education, the firm also has significant operations in providing clinical assessments, professional certification and testing.