Berkshire Hathaway (WBO:BRKB) Debt-to-Equity : 0.23 (As of Dec. 2023)

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What is Berkshire Hathaway Debt-to-Equity?

Berkshire Hathaway's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €4,892 Mil. Berkshire Hathaway's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was €112,732 Mil. Berkshire Hathaway's Total Stockholders Equity for the quarter that ended in Dec. 2023 was €514,687 Mil. Berkshire Hathaway's debt to equity for the quarter that ended in Dec. 2023 was 0.23.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Berkshire Hathaway's Debt-to-Equity or its related term are showing as below:

WBO:BRKB' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.23 Med: 0.27 Max: 0.36
Current: 0.23

During the past 13 years, the highest Debt-to-Equity Ratio of Berkshire Hathaway was 0.36. The lowest was 0.23. And the median was 0.27.

WBO:BRKB's Debt-to-Equity is ranked better than
51.31% of 382 companies
in the Insurance industry
Industry Median: 0.245 vs WBO:BRKB: 0.23

Berkshire Hathaway Debt-to-Equity Historical Data

The historical data trend for Berkshire Hathaway's Debt-to-Equity 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.

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Berkshire Hathaway Debt-to-Equity Chart

Berkshire Hathaway Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-Equity

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0.24

0.26

0.23

0.26

0.23

Berkshire Hathaway Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-Equity	Get a 7-Day Free Trial															0.26	0.25	0.23	0.24	0.23

Competitive Comparison of Berkshire Hathaway's Debt-to-Equity

For the Insurance - Diversified subindustry, Berkshire Hathaway's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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's Debt-to-Equity Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Berkshire Hathaway's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Berkshire Hathaway's Debt-to-Equity falls into.

Berkshire Hathaway Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Berkshire Hathaway's Debt to Equity Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(4892.195	+	112732.312)	/	514687.341
	=	0.23

Berkshire Hathaway's Debt to Equity Ratio for the quarter that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(4892.195	+	112732.312)	/	514687.341
	=	0.23

Berkshire Hathaway (WBO:BRKB) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Berkshire Hathaway Debt-to-Equity Related Terms

Thank you for viewing the detailed overview of Berkshire Hathaway's Debt-to-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.

Berkshire Hathaway (WBO:BRKB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Berkshire Hathaway Inc (WBO:BRKB) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

BRK.B:USA BRK.A:USA BRK_B:Peru BRKB:Mexico 1BRK:Italy BRYNd:UK 0R37:UK BRYN:Germany BRK:Canada BERK34:Brazil BRKB:Argentina

Address

3555 Farnam Street, Omaha, NE, USA, 68131

Website

https://www.berkshirehathaway.com

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 these and its other operations over the years to acquire Burlington Northern Santa Fe (railroad), Berkshire Hathaway Energy (utilities and energy distributors), and the firms that make up its manufacturing, service, and retailing operations (which include five of Berkshire's largest noninsurance pretax earnings generators: Precision Castparts, Lubrizol, Clayton Homes, Marmon, and IMC/ISCAR). The conglomerate is unique in that it is run on a completely decentralized basis.

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