USD 35,820 Mil (NYSE:BRK.B). Berkshire Hathaway EBIT description, competitive comparison data, historical data and more." />Berkshire Hathaway EBIT (NYSE:BRK.B)
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Berkshire Hathaway Inc  (NYSE:BRK.B) EBIT: USD 35,820 Mil (TTM As of Jun. 2017)

Berkshire Hathaway Inc's earnings before interest and taxes (EBIT) for the three months ended in Jun. 2017 was USD 7,629 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2017 was USD 35,820 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Berkshire Hathaway Inc's annualized ROC % for the quarter that ended in Jun. 2017 was 5.48%. Berkshire Hathaway Inc's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2017 was 19.78%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Berkshire Hathaway Inc's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jun. 2017 was 8.45%.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Berkshire Hathaway Inc Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
EBIT Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 24,980.00 31,597.00 31,358.00 38,461.00 37,164.00

Berkshire Hathaway Inc Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
EBIT Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8,099.00 11,568.00 9,868.00 6,755.00 7,629.00

Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then operating income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Jun. 2017 was 11568 (Sep. 2016 ) + 9868 (Dec. 2016 ) + 6755 (Mar. 2017 ) + 7629 (Jun. 2017 ) = USD 35,820 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Berkshire Hathaway Inc's annualized ROC % for the quarter that ended in Jun. 2017 is calculated as:

ROC %(Q: Jun. 2017 )
=NOPAT/Average Invested Capital
=Operating Income*(1-Tax Rate)/( (Invested Capital (Q: Mar. 2017 ) + Invested Capital (Q: Jun. 2017 ))/2)
=23280 * ( 1 - 28.94% )/( (300343 + 303180)/2)
=16542.768/301761.5
=5.48 %

where

Invested Capital(Q: Mar. 2017 )
=Book Value of Debt + Book Value of Equity - Cash
=Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt + Total Equity - Cash
=103956 + 0 + 292851 - 96464
=300343

Invested Capital(Q: Jun. 2017 )
=Book Value of Debt + Book Value of Equity - Cash
=Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt + Total Equity - Cash
=102270 + 0 + 300659 - 99749
=303180

Note: The Operating Income data used here is four times the quarterly (Jun. 2017) operating income data.

2. Joel Greenblatt's definition of Return on Capital:

Berkshire Hathaway Inc's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2017 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2017 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2017  Q: Jun. 2017
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/2 )
=30516/( ( (153645 + max(-96464, 0)) + (154909 + max(-99749, 0)) )/2 )
=30516/( ( 153645 + 154909 )/2 )
=30516/154277
=19.78 %

where Working Capital is:

Working Capital(Q: Mar. 2017 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(28870 + 0 + -125334) - (33123 + 0 + -33123)
=-96464

Working Capital(Q: Jun. 2017 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(28953 + 0 + -128702) - (33807 + 0 + -33807)
=-99749

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2017) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Berkshire Hathaway Inc's Earnings Yield (Joel Greenblatt) %for the quarter that ended in Jun. 2017 is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Jun. 2017 )
=35820/423773.853
=8.45 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


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