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Berkshire Hathaway Inc  (NYSE:BRK.B) Goodwill-to-Asset: 0.12 (As of Jun. 2017)

Goodwill to Asset ratio measures how much goodwill a company is recording compared to the total level of its assets. Berkshire Hathaway Inc's Goodwill for the quarter that ended in Jun. 2017 was USD 80,175 Mil. Berkshire Hathaway Inc's Total Assets for the quarter that ended in Jun. 2017 was USD 665,590 Mil. Therefore, Berkshire Hathaway Inc's Goodwill to Asset Ratio for the quarter that ended in Jun. 2017 was 0.12.


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
Goodwill-to-Asset Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.13 0.12 0.12 0.11 0.13

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
Goodwill-to-Asset 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 0.13 0.13 0.13 0.12 0.12

Competitive Comparison
* 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.


Calculation

Goodwill to Asset ratio measures how much goodwill a company is recording compared to the total level of its assets.

It is calculated by dividing goodwill by total assets.

Berkshire Hathaway Inc's Goodwill to Asset Ratio for the fiscal year that ended in Dec. 2016 is calculated as

Goodwill to Asset (A: Dec. 2016 )=Goodwill/Total Assets
=79486/620854
=0.13

Berkshire Hathaway Inc's Goodwill to Asset Ratio for the quarter that ended in Jun. 2017 is calculated as

Goodwill to Asset (Q: Jun. 2017 )=Goodwill/Total Assets
=80175/665590
=0.12

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


Explanation

If the goodwill-to-asset ratio increases, it can mean that the company is recording a proportionately higher amount of goodwill, assuming total assets are remaining constant. It is generally good to see a company increasing its assets regularly; however, if these increases are coming from intangible assets, such as goodwill, the increases may not be as good.

Increases in the goodwill-to-asset ratio might suggest that a company has been aggressively acquiring other firms or has seen its tangible assets decrease in value. When a large portion of total assets are attributable to intangible assets (such as goodwill), the company may be at risk of having that portion of its asset base wiped out quickly if it must record any goodwill impairments. Decreases in the goodwill-to-assets ratio suggest that the company has either written down some goodwill or increased its tangible assets.

Asset needs vary from industry to industry. This is why comparing goodwill-to-assets ratios is generally most meaningful among companies within the same industry. By comparing a company's goodwill to assets ratio to those of other companies within the same industry, investors can get a feel for how a company is managing its goodwill.


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