What is Berkshire Hathaway Financial Strength?
Berkshire Hathaway has the Financial Strength Rank of 7.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its
Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3.
Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Berkshire Hathaway's Interest Coverage for the quarter that ended in Dec. 2024 was 17.68.
Berkshire Hathaway's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.31.
Altman Z-Score does not apply to banks and insurance companies.
Berkshire Hathaway Financial Strength Calculation
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
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:
Berkshire Hathaway's Interest Expense for the
months ended in Dec. 2024 was $-1,440 Mil. Its Operating Income for the
months ended in Dec. 2024 was $0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was $122,324 Mil.
Berkshire Hathaway's Interest Coverage for the quarter that ended in Dec. 2024 is
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Berkshire Hathaway's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Altman Z-Score does not apply to banks and insurance companies.
* 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 Business Description
Traded in Other Exchanges
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 companies 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.
Executives
| Ajit Jain |
director, officer: Vice Chairman |
100 FIRST STAMFORD PLACE, BHRG, STAMFORD CT 06902 |
| Murphy Thomas S Jr |
director |
C/O CRESTVIEW ADVISORS, 667 MADISON AVENUE, 10TH FLOOR, NEW YORK NY 10021 |
| Warren E Buffett |
director, 10 percent owner, officer: Chairman and CEO |
3555 FARNAM ST, STE 1440, OMAHA NE 68131 |
| Charlotte Guyman |
director |
3324 78TH PL. N.E., MEDINA WA 98004 |
| Susan A. Buffett |
director |
808 CONAGRA DRIVE, OMAHA NE 68102 |
| Christopher C Davis |
director |
C/O GRAHAM HOLDINGS COMPANY, 1300 NORTH 17TH STREET, SUITE 1700, ARLINGTON VA 22209 |
| Ronald L Olson |
director |
EDISON INTERNATIONAL, 2244 WALNUT GROVE AVENUE, ROSEMEAD CA 91770 |
| Kenneth I Chenault |
director |
C/O GENERAL CATALYST, 20 UNIVERSITY ROAD, 4TH FLOOR, CAMBRIDGE MA 02138 |
| Gregory Abel |
director, officer: Vice Chairman |
666 GRAND AVE., STE.500, DES MOINES IA 50309 |
| Meryl B Witmer |
director |
655 THIRD AVENUE, 11TH FLOOR, NEW YORK NY 10017 |
| Thomas S Murphy |
director |
C/O WALT DISNEY CO, 500 S BUENA VISTA STREET, BURBANK CA 91521-1010 |
| Bill & Melinda Gates Foundation Trust |
10 percent owner |
2365 CARILLON POINT, KIRKLAND WA 98033 |
| Stephen B Burke |
director |
41 CENTRAL PARK WEST - APT 11A, NEW YORK NY 10023 |
| Susan L Decker |
director |
C/O YAHOO INC, 701 FIRST AVE, SUNNYVALE CA 94089 |
| Gates William H Iii |
director |
2365 CARILLON POINT, KIRKLAND WA 98033 |
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