Berkshire Hathaway Stock Probability Of Bankruptcy
| BRK-B Stock | USD 453.20 3.86 0.86% |
Berkshire | Probability Of Bankruptcy |
Berkshire Hathaway Company chance of distress Analysis
Berkshire Hathaway's Probability Of Bankruptcy is a relative measure of the likelihood of financial distress. For stocks, the Probability Of Bankruptcy is the normalized value of Z-Score. For funds and ETFs, it is derived from a multi-factor model developed by Macroaxis. The score is used to predict the probability of a firm or a fund experiencing financial distress within the next 24 months. Unlike Z-Score, Probability Of Bankruptcy is the value between 0 and 100, indicating the firm's actual probability it will be financially distressed in the next 2 fiscal years.
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Probability Of Bankruptcy | = | Normalized | | Z-Score |
Current Berkshire Hathaway Probability Of Bankruptcy | Less than 3% |
Most of Berkshire Hathaway's fundamental indicators, such as Probability Of Bankruptcy, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Berkshire Hathaway is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Our calculation of Berkshire Hathaway probability of bankruptcy is based on Altman Z-Score and Piotroski F-Score, but not limited to these measures. To be applied to a broader range of industries and markets, we use several other techniques to enhance the accuracy of predicting Berkshire Hathaway odds of financial distress. These include financial statement analysis, different types of price predictions, earning estimates, analysis consensus, and basic intrinsic valuation. Please use the options below to get a better understanding of different measures that drive the calculation of Berkshire Hathaway financial health.
Berkshire Probability Of Bankruptcy Driver Correlations
Understanding the fundamental principles of building solid financial models for Berkshire Hathaway is extremely important. It helps to project a fair market value of Berkshire Stock properly, considering its historical fundamentals such as Probability Of Bankruptcy. Since Berkshire Hathaway's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Berkshire Hathaway's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Berkshire Hathaway's interrelated accounts and indicators.
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The Probability of Bankruptcy SHOULD NOT be confused with the actual chance of a company to file for chapter 7, 11, 12, or 13 bankruptcy protection. Macroaxis simply defines Financial Distress as an operational condition where a company is having difficulty meeting its current financial obligations towards its creditors or delivering on the expectations of its investors. Macroaxis derives these conditions daily from both public financial statements as well as analysis of stock prices reacting to market conditions or economic downturns, including short-term and long-term historical volatility. Other factors taken into account include analysis of liquidity, revenue patterns, R&D expenses, and commitments, as well as public headlines and social sentiment.
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Based on the latest financial disclosure, Berkshire Hathaway has a Probability Of Bankruptcy of 3.0%. This is 93.99% lower than that of the Financial Services sector and significantly higher than that of the Financials industry. The probability of bankruptcy for all United States stocks is 92.47% higher than that of the company.
Berkshire Probability Of Bankruptcy Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Berkshire Hathaway's direct or indirect competition against its Probability Of Bankruptcy to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Berkshire Hathaway could also be used in its relative valuation, which is a method of valuing Berkshire Hathaway by comparing valuation metrics of similar companies.Berkshire Hathaway is currently under evaluation in probability of bankruptcy category among its peers.
Berkshire Hathaway Main Bankruptcy Drivers
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Return On Assets | 0.0996 | 0.0487 | 0.0938 | (0.0241) | 0.0899 | 0.0944 | |
| Asset Turnover | 0.34 | 0.35 | 0.4 | 0.33 | 0.32 | 0.24 | |
| Gross Profit Margin | 0.54 | 0.39 | 0.55 | 0.59 | 0.34 | 0.43 | |
| Net Debt | 39.2B | 68.9B | 26.1B | 86.9B | 90.2B | 94.8B | |
| Total Current Liabilities | 44.4B | 45.6B | 45.2B | 62.5B | 8.3B | 7.8B | |
| Non Current Liabilities Total | 170.8B | 187.6B | 202.2B | 197.3B | 491.0B | 515.5B | |
| Total Assets | 817.7B | 873.7B | 958.8B | 948.5B | 1.1T | 1.1T | |
| Total Current Assets | 163.8B | 174.1B | 186.3B | 176.9B | 211.8B | 222.4B | |
| Total Cash From Operating Activities | 38.7B | 39.8B | 39.4B | 37.2B | 49.2B | 51.7B |
Berkshire Hathaway ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Berkshire Hathaway's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Berkshire Hathaway's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
Berkshire Fundamentals
| Return On Equity | 0.18 | ||||
| Return On Asset | 0.0789 | ||||
| Profit Margin | 0.29 % | ||||
| Operating Margin | 0.36 % | ||||
| Current Valuation | 1.07 T | ||||
| Shares Outstanding | 1.33 B | ||||
| Shares Owned By Insiders | 0.38 % | ||||
| Shares Owned By Institutions | 66.50 % | ||||
| Number Of Shares Shorted | 15.07 M | ||||
| Price To Book | 1.55 X | ||||
| Price To Sales | 2.65 X | ||||
| Revenue | 364.48 B | ||||
| Gross Profit | (28.09 B) | ||||
| EBITDA | 137.66 B | ||||
| Net Income | 97.15 B | ||||
| Cash And Equivalents | 35.81 B | ||||
| Total Debt | 128.27 B | ||||
| Debt To Equity | 0.26 % | ||||
| Current Ratio | 1.59 X | ||||
| Book Value Per Share | 437,446 X | ||||
| Cash Flow From Operations | 49.2 B | ||||
| Short Ratio | 3.73 X | ||||
| Earnings Per Share | 49.44 X | ||||
| Price To Earnings To Growth | 10.06 X | ||||
| Target Price | 497.67 | ||||
| Number Of Employees | 396.5 K | ||||
| Beta | 0.87 | ||||
| Market Capitalization | 978.78 B | ||||
| Total Asset | 1.07 T | ||||
| Retained Earnings | 607.35 B | ||||
| Net Asset | 1.07 T |
About Berkshire Hathaway Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Berkshire Hathaway's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Berkshire Hathaway using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Berkshire Hathaway based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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Berkshire Hathaway financial ratios help investors to determine whether Berkshire Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Berkshire with respect to the benefits of owning Berkshire Hathaway security.