BRK-B
Record Cash Reserves and Slowing Buybacks Signal a Cautious Path for Berkshire Hathaway
Comprehensive Financial Analysis • 2026-04-08
1
Company Profile & Classification
Sector, moat, style, market positioning
2
2
Equity Performance & Market Positioning
Returns, risk metrics, smart money positioning
3-4
3
Revenue, Earnings & Margin History
Growth trajectory, margins, EPS, cost structure
5-6
4
Profitability & Return on Capital
DuPont, ROIC, efficiency, asset turnover
7-9
5
Balance Sheet & Cash Flow Health
Liquidity, solvency, cash flow, FCF statistics
10-12
6
Executive Insights & Key Takeaways
Summary and investment implications
13
Company Profile & Classification
BRK-B — Berkshire Hathaway Inc.
Financial Services · Insurance - Diversified $1.01T · Mega Cap Consumer + Commercial
Business & Competitive Position
💰 Revenue Model Net Interest + Fee Income
🏗️ Asset Profile Asset-Heavy
🛡️ Economic Moat
Narrow Moat (Regional Scale)
🔒 Regional Scale🔒 Deposit Franchise
📈 Pricing Power
Strong
🏆 Market Position Major Regional
Growth & Valuation
🎯 Invest Style
Value Blend Growth Quality
🚀 Growth
Declining Low Moderate High
📊 Revenue +0.0% YoY
🔄 Cyclicality
Defensive Mod Cyclical Highly Cyclical
💲 Valuation
16.2x P/E 1.5x P/B 16.0x EV/EBITDA
⚖️ Tier
Fair Value
📊 Beta 0.69 (Low Volatility)
Equity Performance & Market Positioning
Berkshire Hathaway Inc. (BRK-B) — Stock Returns
Recent Performance
-4.2%
1 Month
vs S&P -2.4
-4.1%
3 Month
vs S&P +0.0
-4.1%
6 Month
vs S&P -2.7
-4.9%
YTD
vs S&P -1.5
-9.8%
1 Year
vs S&P -32.4
  • YTD return of -4.9% underperformed the S&P 500 by 340 basis points.
  • 1-year loss of 9.8% protected capital significantly better than the S&P 500's 32.4% decline.
  • Short-term momentum is negative with a 4.2% drop over the last month.
Long-Term Performance (Annualized)
15.7%
3 Year
vs S&P -1.5
13.4%
5 Year
vs S&P +2.6
12.9%
10 Year
vs S&P +0.5
10.6%
Full History
vs S&P +2.6
  • 3-year annualized return of 15.7% outperformed the benchmark by 17.2 percentage points.
  • 10-year annualized return of 12.9% provides a consistent 12.4% lead over the S&P 500.
  • Full history annualized return of 10.6% quadruples the S&P 500's 2.6% long-term average.
Highlight

1-year relative outperformance of 22.6% demonstrates elite defensive positioning during market contractions.

Watch Out

Recent 3-month underperformance of 4.1% indicates a potential lag during rapid market rebounds.

Equity Performance & Market Positioning
Berkshire Hathaway Inc. (BRK-B) — Risk & Smart Money
Risk Profile
10.5%
Volatility (20D)
0.69
Beta
-1.37
Sharpe Ratio
-14.9%
Max Drawdown (1Y)
32
RSI (14)
26%
52-Week Range
  • Beta of 0.7 indicates a defensive profile with 30% less volatility than the S&P 500.
  • RSI of 31.6 suggests the stock is approaching technically oversold territory.
  • Maximum drawdown limited to -14.9%, demonstrating strong downside protection.
  • Annualized volatility remains low at 10.5%.
Smart Money Positioning
42.1%
Institutional Ownership
+1.6% QoQ
  • Institutional ownership currently sits at 42.13% of total shares outstanding.
  • Net institutional accumulation rose by 1.60% in the most recent reporting period.
  • Price stability maintained within a tight 26.3% 52-week trading range.
Watch Out

Negative Sharpe Ratio of -1.4 signals that recent returns have failed to compensate for risk.

Revenue, Earnings & Margin History
Berkshire Hathaway Inc. (BRK-B) — Revenue & Growth
Revenue & Growth
  • Total revenue reached $371.4B, representing a flat YoY growth rate of 0.3%.
  • Sustained medium-term expansion evidenced by a 16.6% 3-year revenue CAGR.
  • Bottom-line performance delivered a robust EPS of $31.04.
Highlight

Impressive 16.6% 3-year CAGR demonstrates the ability to compound at scale despite recent YoY stabilization.

Margin Evolution
  • Operating margin of 16.0% maintained on a gross margin base of 23.6%.
  • Net margin of 18.0% exceeds operating levels, driven by significant investment portfolio gains.
  • Efficiency is maximized with 0.0% of revenue allocated to R&D or Stock-Based Compensation.
  • Free Cash Flow (FCF) generation remains healthy at 6.7% of total revenue.
Watch Out

The 18.0% net margin is susceptible to high volatility due to mandatory reporting of unrealized investment gains.

Revenue, Earnings & Margin History
Berkshire Hathaway Inc. (BRK-B) — 11-Year Financial History
P&L Breakdown & Cost Structure
Growth Summary (CAGR)
📈 Revenue
3Y
+16.6%
5Y
+5.3%
💰 EPS
5Y
+11.8%
  • Total revenue reached $371.4B, representing a flat YoY growth rate of 0.3%.
  • Sustained medium-term expansion evidenced by a 16.6% 3-year revenue CAGR.
  • Bottom-line performance delivered a robust EPS of $31.04.
Profitability & Return on Capital
Berkshire Hathaway Inc. (BRK-B) — DuPont & Efficiency
DuPont Decomposition (2025)
9.3%
ROE
=
18.0%
Net Margin
×
0.30x
Asset Turnover
×
1.7x
Eq. Multiplier
  • ROE remained nearly flat at 9.3% as massive margin expansion offset lower leverage and turnover.
  • Net profit margin surged from 11.4% to 18.0%, significantly increasing earnings power per dollar of revenue.
  • Equity Multiplier fell from 2.16 to 1.70, indicating a shift toward a more conservative, less levered balance sheet.
Highlight

Net margin expansion of 6.6 percentage points drove earnings quality despite reduced financial leverage.

Profitability & Efficiency History
YearROE%Margin%TurnoverLeverageROIC%ROCE%ROA%
2025 9.3 18.0 0.30 1.70 7.8 5.2 5.5
2024 13.7 24.0 0.32 1.78 8.4 5.5 7.7
2023 17.1 21.9 0.41 1.91 22.0 4.8 9.0
2022 -4.8 -9.7 0.25 2.00 -6.4 4.7 -2.4
2021 17.8 25.4 0.37 1.89 23.3 3.8 9.4
2020 9.6 14.9 0.33 1.97 12.1 3.6 4.9
2019 19.2 24.9 0.40 1.93 23.0 4.2 10.0
2018 1.2 1.8 0.32 2.03 1.0 4.9 0.6
2017 12.9 18.6 0.34 2.02 5.8 3.6 6.4
2016 8.5 10.8 0.36 2.20 9.3 4.9 3.9
2015 9.4 11.4 0.38 2.16 11.5 5.4 4.4
  • ROIC of 7.8% reflects steady returns on capital relative to the firm's massive scale.
  • Cash Conversion Cycle of 35 days indicates efficient management of operational working capital.
  • Asset turnover slowed to 0.30, signaling reduced revenue generation per dollar of assets held.
Watch Out

Declining asset turnover to 0.30 suggests a growing cash drag on overall capital efficiency.

Profitability & Return on Capital
Berkshire Hathaway Inc. (BRK-B) — ROIC & Cash Conversion
Return on Invested Capital
Current7.8%
Mean10.7%
Min-6.4%
Max23.3%
Range29.7pp
Cash Conversion Cycle
Current35d
Mean41d
Min21d
Max57d
  • ROIC of 7.8% reflects steady returns on capital relative to the firm's massive scale.
  • Cash Conversion Cycle of 35 days indicates efficient management of operational working capital.
  • Asset turnover slowed to 0.30, signaling reduced revenue generation per dollar of assets held.
Profitability & Return on Capital
Berkshire Hathaway Inc. (BRK-B) — Asset Turnover Decomposition
Asset Turnover in Days (2025)
31d
Inventory Days
+
77d
Receivables Days
+
237d
Fixed Asset Days
≈
1201d
Total Asset Days
(0.30x turn)
Cash Conversion Cycle (2025)
31d
Inventory Days
+
77d
Receivables Days
−
74d
Payables Days
=
35d
CCC
Turnover & Days History
YearTotal Asset DaysInventory DaysReceivables DaysFixed Asset DaysPayables DaysCash Conversion Cycle
2025 1201 31 77 237 74 35
2024 1134 31 75 225 63 42
2023 889 30 76 222 61 45
2022 1479 38 86 244 67 57
2021 987 35 80 260 67 47
2020 1114 36 82 286 72 45
2019 912 36 76 258 66 47
2018 1146 35 76 246 69 43
2017 1059 32 71 241 66 37
2016 1014 34 68 259 72 30
2015 956 28 66 264 72 21
  • ROE remained nearly flat at 9.3% as massive margin expansion offset lower leverage and turnover.
  • Net profit margin surged from 11.4% to 18.0%, significantly increasing earnings power per dollar of revenue.
  • Equity Multiplier fell from 2.16 to 1.70, indicating a shift toward a more conservative, less levered balance sheet.
Balance Sheet & Cash Flow Health
Berkshire Hathaway Inc. (BRK-B) — Balance Sheet
Balance Sheet Items ($M)
YearTotal AssetsTotal LiabilitiesTotal EquityTotal DebtNet DebtCashCurrent AssetsCurrent Liabilities
2025 $1222176M $502473M $717419M $138954M $87077M $51877M $476289M $70536M
2024 $1153881M $502226M $649368M $143527M $95798M $47729M $434397M $73111M
2023 $1069978M $499208M $561273M $133570M $95548M $38022M $267741M $64632M
2022 $948465M $466784M $473424M $127683M $91872M $35811M $225444M $58880M
2021 $958784M $443854M $506199M $119253M $31069M $88184M $227989M $48082M
2020 $873729M $422393M $443164M $122364M $74374M $47990M $212551M $49653M
2019 $817729M $389166M $424791M $109250M $45075M $64175M $201211M $48155M
2018 $707794M $355294M $348703M $97490M $67129M $30361M $182446M $49287M
2017 $702095M $350141M $348296M $102587M $71004M $31583M $179991M $42141M
2016 $620854M $335426M $282070M $86260M $58212M $28048M $142494M $45153M
2015 $552257M $293630M $255550M $72338M $5177M $67161M $119721M $33023M
Liquidity & Solvency
6/9
Piotroski F-Score
Moderate
3.0
Altman Z-Score
Safe
  • Exceptional liquidity position with a Current Ratio of 6.75, significantly outperforming the 1.50 benchmark.
  • Conservative capital structure maintained with a low Debt-to-Equity ratio of 0.19.
  • Strong solvency confirmed by Interest Coverage of 11.75x, providing a wide margin for debt service.
Balance Sheet & Cash Flow Health
Berkshire Hathaway Inc. (BRK-B) — Cash Flow
Cash Flow Statement ($M)
YearOperating CFInvesting CFFinancing CFCapExFree Cash FlowBuybacksDividends
2025 $45969M $-44487M $2233M $-20927M $25042M
2024 $30592M $-10287M $-10360M $-18976M $11616M $-2918M
2023 $49196M $-32663M $-14405M $-19409M $29787M $-9171M
2022 $37224M $-87601M $-1662M $-15464M $21760M $-7854M
2021 $39421M $29392M $-28508M $-13276M $26145M $-27061M
2020 $39773M $-37757M $-18344M $-13012M $26761M $-24706M
2019 $38687M $-5621M $730M $-15979M $22708M $-4850M
2018 $37400M $-32849M $-5812M $-14537M $22863M $-1346M
2017 $45776M $-41091M $-1398M $-11708M $34068M
2016 $32535M $-84267M $12791M $-12954M $19581M
2015 $31491M $-26668M $3803M $-16082M $15409M
Cash Flow Trends
  • Altman Z-Score of 3.03 places the company in the 'Safe' zone, indicating minimal bankruptcy risk.
  • Piotroski F-Score of 6/9 reflects solid fundamental strength and operational health.
  • Free Cash Flow yield of 6.74% demonstrates consistent, though not aggressive, cash generation.
Balance Sheet & Cash Flow Health
Berkshire Hathaway Inc. (BRK-B) — FCF & Capital Returns
Free Cash Flow Statistics
Buyback & Dividend Trends
  • Altman Z-Score of 3.03 places the company in the 'Safe' zone, indicating minimal bankruptcy risk.
  • Piotroski F-Score of 6/9 reflects solid fundamental strength and operational health.
  • Free Cash Flow yield of 6.74% demonstrates consistent, though not aggressive, cash generation.
Executive Insights & Key Takeaways
Key Takeaways
1Y Return
▼ -9.8%
vs S&P -32.4pp
Revenue 3Y CAGR
▲ +16.6%
5Y: +5.3%
Net Margin
18.0%
▲ 3Y ago: -9.7%
ROIC
7.8%
▲ 3Y ago: -6.4%
FCF Margin
6.7%
▼ 3Y ago: 9.3%
Piotroski
6/9
Moderate
Berkshire Hathaway maintains a massive $371.4B revenue base with a strong 13.35% 5-year annualized return, though it has recently lagged the S&P 500 by 32.4%. The firm's financial health is anchored by an exceptional 6.75 current ratio and a safe Altman Z-score of 3.0, reflecting a fortress-like capital structure. Despite a recent 1-year return of -9.82%, the company preserves solid 18.03% net margins and a low 0.19 debt-to-equity ratio, signaling long-term stability.
✅ Strengths
  • Robust long-term expansion is evidenced by a 16.6% 3-year revenue CAGR and $371.4B total revenue, proving the conglomerate's ability to scale operations effectively.
  • Superior liquidity and solvency are confirmed by a 6.75 current ratio and 11.7x interest coverage, providing massive dry powder for opportunistic acquisitions.
  • Efficient operational management is highlighted by a 35-day cash conversion cycle and 18.03% net margin, ensuring high profitability despite capital intensity.
  • A defensive market profile is supported by a low 0.688 beta and 10.47% volatility, offering investors significant protection against broader market swings.
⚠️ Risks
  • Recent performance lag is significant, with a -9.82% 1-year return and -32.4% excess return vs the S&P 500, suggesting a period of relative stagnation.
  • Risk-adjusted returns are currently poor as indicated by a -1.37 Sharpe ratio and -14.95% maximum drawdown, failing to compensate for recent price fluctuations.
  • Organic growth has stalled with YoY revenue increasing only 0.003%, signaling a potential plateau in the existing business portfolio's expansion.
  • Asset utilization remains a concern with a low 0.30 turnover ratio and 5.48% ROA, suggesting the company is struggling to generate high yields on its massive asset base.
BRK-B
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