Berkshire HathawayXSWX:BRK +0.45%74 Interest Coverage is 10.47 as of Mar. 2026, which is 39% below its 10-year median of 17.27. GuruFocus rates XSWX:BRK with a GF Score™ of 74/100 and a GF Value™ of CHF427.07 (Fairly Valued). The stock has 5 warning signs investors should review. Among 353 Insurance companies, Berkshire Hathaway ranks better than 52.41% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
EBIT
by its Interest Expense. Berkshire Hathaway's
EBIT
for the
three
months ended in Mar. 2026 was CHF10,723 Mil. Berkshire Hathaway's Interest Expense for the
three
months ended in Mar. 2026 was CHF-1,024 Mil.
Berkshire Hathaway's interest coverage for the quarter that ended in Mar. 2026 was 10.47.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Berkshire Hathaway's Interest Coverage or its related term are showing as below:
XSWX:BRK'
s Interest Coverage Range Over the Past 10 Years
Min: 2.04 Med: 17.27 Max: 27.81
Current: 18.53
XSWX:BRK's Interest Coverage is ranked better than 52.41% of 353
companies
in the Insurance industry
Industry Median: 16.26
vs XSWX:BRK: 18.53
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Berkshire Hathaway Interest Coverage Related Terms
Berkshire Hathaway Interest Coverage Historical Data
* Premium members only.
The historical data trend for Berkshire Hathaway's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
XSWX:BRK vs AIG, HIG, ACGL: Interest Coverage Comparison
For the Insurance - Diversified subindustry, Berkshire Hathaway's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Insurance Industry
For the Insurance industry and Financial Services sector, Berkshire Hathaway's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Berkshire Hathaway's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (XSWX:BRK) has a Interest Coverage of 10.47 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Berkshire Hathaway and its competitors. This is 39% below median its historical median of 17.27. Over the past decade, Berkshire Hathaway's Interest Coverage has ranged from 2.04 to 27.81. According to the industry distribution chart, Berkshire Hathaway ranks #168 out of 353 companies in the Insurance industry, placing it in the top 47.6%.
Is Berkshire Hathaway's Interest Coverage too high?
Berkshire Hathaway's current Interest Coverage of 10.47 is 39% below median its 10-year median of 17.27. Over the past 10 years, this metric has ranged from a low of 2.04 to a high of 27.81. The Insurance industry median Interest Coverage is 16.26. Berkshire Hathaway's value of 10.47 is 35.6% below this industry median. Based on the distribution chart, Berkshire Hathaway ranks #168 out of 353 companies in the Insurance industry, which is above the industry midpoint. Overall, Berkshire Hathaway has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Berkshire Hathaway's Interest Coverage compare to AIG and HIG?
According to the Insurance industry distribution chart, Berkshire Hathaway ranks #168 out of 353 companies for Interest Coverage. This puts Berkshire Hathaway in the upper half of its industry. The industry median Interest Coverage is 16.26. Berkshire Hathaway's value of 10.47 is 35.6% below this benchmark. Historically, Berkshire Hathaway's own Interest Coverage has ranged from 2.04 to 27.81 over the past decade. While the company's 10-year median is 17.27 vs. the industry median of 16.26, Berkshire Hathaway has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Insurance company?
The median Interest Coverage among Insurance companies is 16.26, based on 353 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Berkshire Hathaway's current Interest Coverage of 10.47 is 35.6% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Berkshire Hathaway and its competitors. For the Insurance industry, the median Interest Coverage is 16.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Berkshire Hathaway's current Interest Coverage is 10.47, which is 39% below median its own 10-year median of 17.27. 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?
Based on GuruFocus' analysis, Berkshire Hathaway (XSWX:BRK) is currently considered Fairly Valued. The stock's GF Value™ is CHF427.07, compared to a current price of CHF399.10 — trading 6.5% below its estimated fair value. The current Interest Coverage is 10.47, which is 39% below median its 10-year median of 17.27 and 35.6% below the Insurance industry median of 16.26. Berkshire Hathaway's overall GF Score™ is 74/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Berkshire Hathaway (XSWX:BRK), the current Interest Coverage is 10.47 as of Mar. 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 (XSWX:BRK) Overvalued in 2026?
Based on GuruFocus' analysis, Berkshire Hathaway stock appears to be undervalued.
The current stock price of CHF399.10 is trading 6.5% below its estimated GF Value™ of CHF427.07.
GuruFocus considers Berkshire Hathaway to be Fairly Valued.
Key valuation signals for XSWX:BRK:
Interest Coverage: 10.47 (39% below median its 10-year median of 17.27)
GF Value™: CHF427.07 vs. price of CHF399.10 (6.5% below fair value)
Industry Position: 35.6% below the Insurance median (#168 of 353)
No single metric tells the full story. See the XSWX:BRK 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.
74GF Score
Get the complete analysis for XSWX:BRK
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