Hyperscaler capex runs further ahead of depreciation than in 2019
Over the last four quarters the group spent 3.2 times its depreciation and amortisation, against 1.3 times in 2019. Year on year, combined capex moved +81% and depreciation +32%.
Capex as a multiple of depreciation
Trailing four quarters, each company
A ratio above 1 means the asset base is growing; the excess becomes depreciation in later years.
The five combined
Sum of capex over sum of D&A, trailing four quarters, calendar-quarter aligned
What it means · inference
- Depreciation will keep rising for years
- The gap between capex and depreciation is still widening
For investors · general, not personal financial advice
- Rising depreciation will pressure future GAAP margins
- Server useful-life assumptions drive the reported charge
- Exposure differs: ORCL highest ratio, AMZN lowest
What would change it
- Shorter server lives raising depreciation at once
- The ratio falling back towards 2x
Method
- What is measured: Trailing-four-quarter capital expenditure over trailing-four-quarter depreciation and amortisation for MSFT, AMZN, GOOGL, META, ORCL, quarterly from 2018 to each company's latest reported quarter (to 30 Jun 2026).
- Capex = Alpha Vantage capitalExpenditures; D&A = depreciationDepletionAndAmortization from the cash-flow statement; both summed over the latest four fiscal quarters.
- Combined ratio aligns Oracle's fiscal quarters to the calendar quarter in which they end. Finance-lease additions are not in capex, so the ratio understates investment for heavy lease users.
Sources
- MCH research warehouse, quarterly statements (Alpha Vantage, as restated).
Universe
| Names in the published feed | 886 |
| Excluded: held, suspended, withdrawn, deferred, deal-pending or pending review | 54 |
| Reader-safe universe | 832 |
| Selected: the hyperscaler group named above | 5 |
| Used in this exhibit | 5 |
Names whose rating is held, suspended, withdrawn, deferred or under a pending deal are excluded from every exhibit, so no held output appears here.
General and impersonal investment research. Not personal financial advice. Forecasts, valuations and model outputs are estimates and may be wrong. See Investment Disclaimer.
MCH Analysis is a general investment-research publication of MCH Advisory (Pty) Ltd. It is not personal financial advice and does not take your circumstances into account. MCH is not a licensed financial services provider or a registered investment adviser. Past performance, whether actual or simulated, does not predict future results. Subscriber Agreement | Privacy and Cookie Notice | Research Governance Policies