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Berkshire Hathaway (NEOE:BRK) Debt-to-EBITDA : 0.63 (As of Dec. 2023)


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What is Berkshire Hathaway Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Berkshire Hathaway's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$7,157 Mil. Berkshire Hathaway's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$164,931 Mil. Berkshire Hathaway's annualized EBITDA for the quarter that ended in Dec. 2023 was C$275,527 Mil. Berkshire Hathaway's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 0.62.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

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

NEOE:BRK' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -8.05   Med: 1.74   Max: 5.53
Current: 0.93

During the past 13 years, the highest Debt-to-EBITDA Ratio of Berkshire Hathaway was 5.53. The lowest was -8.05. And the median was 1.74.

NEOE:BRK's Debt-to-EBITDA is ranked better than
64.26% of 291 companies
in the Insurance industry
Industry Median: 1.49 vs NEOE:BRK: 0.93

Berkshire Hathaway Debt-to-EBITDA Historical Data

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

Berkshire Hathaway Debt-to-EBITDA Chart

Berkshire Hathaway Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.89 1.66 0.90 -8.05 0.93

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-EBITDA Get a 7-Day Free Trial 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 1.18 0.63 0.63 -2.50 0.63

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

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

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

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



Berkshire Hathaway Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

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

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(7157.436 + 164930.938) / 184677.948
=0.93

Berkshire Hathaway's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(7157.436 + 164930.938) / 275527.072
=0.62

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Dec. 2023) EBITDA data.


Berkshire Hathaway  (NEOE:BRK) Debt-to-EBITDA Explanation

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


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Berkshire Hathaway Debt-to-EBITDA Related Terms

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


Berkshire Hathaway (NEOE:BRK) Business Description

Address
3555 Farnam Street, Omaha, NE, USA, 68131
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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