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Berkshire Hathaway has a Cash Ratio of 5.60. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for Berkshire Hathaway's Cash Ratio or its related term are showing as below:
WBO:BRKA's Cash Ratio is not ranked *
in the Insurance industry.
Industry Median: 0.7 * Ranked among companies with meaningful Cash Ratio only.
Berkshire Hathaway (WBO:BRKA) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Berkshire Hathaway Cash Ratio Related Terms
Berkshire Hathaway Cash Ratio Historical Data
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The historical data trend for Berkshire Hathaway's Cash Ratio 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.
For the Insurance - Diversified subindustry, Berkshire Hathaway's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Berkshire Hathaway Cash Ratio vs Insurance Industry
For the Insurance industry and Financial Services sector, Berkshire Hathaway's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Berkshire Hathaway's Cash Ratio falls into.
* 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.
Berkshire Hathaway (WBO:BRKA) has a Cash Ratio of 5.60 as of Jun. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Berkshire Hathaway and its competitors. According to the industry distribution chart, Berkshire Hathaway ranks #999999 out of 63 companies in the Insurance industry.
Is Berkshire Hathaway's Cash Ratio too high?
Berkshire Hathaway's current Cash Ratio is 5.60. The Insurance industry median Cash Ratio is 0.70. Berkshire Hathaway's value of 5.60 is 700% above this industry median. Based on the distribution chart, Berkshire Hathaway ranks #999999 out of 63 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Berkshire Hathaway has a GF Score™ of 72/100, reflecting its overall financial health beyond just this single metric.
How does Berkshire Hathaway's Cash Ratio compare to AIG and HIG?
According to the Insurance industry distribution chart, Berkshire Hathaway ranks #999999 out of 63 companies for Cash Ratio. This places Berkshire Hathaway in the lower half of its industry. The industry median Cash Ratio is 0.70. Berkshire Hathaway's value of 5.60 is 700% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for an Insurance company?
The median Cash Ratio among Insurance companies is 0.70, based on 63 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Berkshire Hathaway's current Cash Ratio of 5.60 is 700% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Berkshire Hathaway and its competitors. For the Insurance industry, the median Cash Ratio is 0.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Berkshire Hathaway's current Cash Ratio is 5.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Berkshire Hathaway stock overvalued right now?
Berkshire Hathaway (WBO:BRKA) has a current Cash Ratio of 5.60. The stock's GF Value™ is €702,257.37, compared to a current price of €664,500.00 — trading 5.4% below its estimated fair value. The current Cash Ratio is 5.60 and 700% above the Insurance industry median of 0.70. Berkshire Hathaway's overall GF Score™ is 72/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Berkshire Hathaway (WBO:BRKA), the current Cash Ratio is 5.60 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Berkshire Hathaway (WBO:BRKA) Overvalued in 2026?
Based on GuruFocus' analysis, Berkshire Hathaway stock appears to be undervalued.
The current stock price of €664,500.00 is trading 5.4% below its estimated GF Value™ of €702,257.37.
Key valuation signals for WBO:BRKA:
Cash Ratio: 5.60
GF Value™: €702,257.37 vs. price of €664,500.00 (5.4% below fair value)
Industry Position: 700% above the Insurance median (#999999 of 63)
No single metric tells the full story. See the WBO:BRKA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Berkshire Hathaway is a holding company with a wide array of subsidiaries engaged in diverse activities. The firm's core business segment is insurance, run primarily through Geico, Berkshire Hathaway Reinsurance Group, and Berkshire Hathaway Primary Group. Berkshire has used the excess cash thrown off from its operations to acquire Burlington Northern Santa Fe (railroad), Berkshire Hathaway Energy (utilities and energy distributors), and the companies that make up its manufacturing, service, and retailing operations (which include Precision Castparts, Lubrizol, Clayton Homes, Marmon, and IMC/ISCAR). The conglomerate is unique in that it is run on a completely decentralized basis. Berkshire generated close to $371.4 billion in operating revenue in during 2025.
72GF Score
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