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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Berkshire Hathaway's Sloan Ratio for the quarter that ended in Jun. 2026 was 11.85%.
As of Jun. 2026, Berkshire Hathaway has a Sloan Ratio of 11.85%, indicating there is a warning stage of accrual build up.
Berkshire Hathaway (MEX:BRKB) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Jun. 2026, Berkshire Hathaway has a Sloan Ratio of 11.85%, indicating there is a warning stage of accrual build up.
Berkshire Hathaway Sloan Ratio % Related Terms
Berkshire Hathaway Sloan Ratio % Historical Data
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The historical data trend for Berkshire Hathaway's Sloan Ratio % 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.
MEX:BRKB vs AIG, HIG, ACGL: Sloan Ratio % Comparison
For the Insurance - Diversified subindustry, Berkshire Hathaway's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Insurance Industry
For the Insurance industry and Financial Services sector, Berkshire Hathaway's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Berkshire Hathaway's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Berkshire Hathaway's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Berkshire Hathaway's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 564927.983 (Sep. 2025 ) + 345691.435 (Dec. 2025 ) + 182238.466 (Mar. 2026 ) + 447863.483 (Jun. 2026 ) = MXN1,540,721 Mil.
Berkshire Hathaway's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 252948.174 (Sep. 2025 ) + 201519.795 (Dec. 2025 ) + 188225.323 (Mar. 2026 ) + 195690.535 (Jun. 2026 ) = MXN838,384 Mil.
Berkshire Hathaway's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -716377.699 (Sep. 2025 ) + -691274.835 (Dec. 2025 ) + -77684.872 (Mar. 2026 ) + -424638.864 (Jun. 2026 ) = MXN-1,909,976 Mil.
* 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 (MEX:BRKB) has a Sloan Ratio % of 11.85% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Berkshire Hathaway and its competitors.
Is Berkshire Hathaway's Sloan Ratio % too high?
Berkshire Hathaway's current Sloan Ratio % is 11.85%. Overall, Berkshire Hathaway has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Berkshire Hathaway's Sloan Ratio % compare to AIG and HIG?
Berkshire Hathaway's Sloan Ratio % of 11.85% can be compared against companies in the Insurance industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for an Insurance company?
A good Sloan Ratio % depends on the Insurance industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Berkshire Hathaway and its competitors. Berkshire Hathaway's current Sloan Ratio % is 11.85%. 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 (MEX:BRKB) is currently considered Fairly Valued. The stock's GF Value™ is MXN9,607.78, compared to a current price of MXN8,700.00 — trading 9.4% below its estimated fair value. The current Sloan Ratio % is 11.85%. Berkshire Hathaway's overall GF Score™ is 70/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Berkshire Hathaway (MEX:BRKB), the current Sloan Ratio % is 11.85% as of Jun. 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 (MEX:BRKB) Overvalued in 2026?
Based on GuruFocus' analysis, Berkshire Hathaway stock appears to be undervalued.
The current stock price of MXN8,700.00 is trading 9.4% below its estimated GF Value™ of MXN9,607.78.
GuruFocus considers Berkshire Hathaway to be Fairly Valued.
Key valuation signals for MEX:BRKB:
Sloan Ratio %: 11.85%
GF Value™: MXN9,607.78 vs. price of MXN8,700.00 (9.4% below fair value)
No single metric tells the full story. See the MEX:BRKB 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.
70GF Score
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