Berkshire Hathaway Net Income vs. Revenue
| BRK-B Stock | USD 453.20 3.86 0.86% |
Net Income | First Reported 1988-03-31 | Previous Quarter 30.3 B | Current Value 26.3 B | Quarterly Volatility 11.2 B |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.43 | 0.338 |
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| Operating Profit Margin | 0.36 | 0.338 |
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For Berkshire Hathaway profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Berkshire Hathaway to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Berkshire Hathaway utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Berkshire Hathaway's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Berkshire Hathaway over time as well as its relative position and ranking within its peers.
Berkshire |
Berkshire Hathaway Revenue vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Berkshire Hathaway's current stock value. Our valuation model uses many indicators to compare Berkshire Hathaway value to that of its competitors to determine the firm's financial worth. Berkshire Hathaway is number one stock in net income category among its peers. It also is the top company in revenue category among its peers totaling about 3.75 of Revenue per Net Income. At present, Berkshire Hathaway's Net Income is projected to increase significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Berkshire Hathaway's earnings, one of the primary drivers of an investment's value.Berkshire Revenue vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Berkshire Hathaway |
| = | 97.15 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Berkshire Hathaway |
| = | 364.48 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Berkshire Revenue vs Competition
Berkshire Hathaway is the top company in revenue category among its peers. Market size based on revenue of Financials industry is currently estimated at about 513.57 Billion. Berkshire Hathaway totals roughly 364.48 Billion in revenue claiming about 71% of equities under Financials industry.
Berkshire Hathaway Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Berkshire Hathaway, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Berkshire Hathaway will eventually generate negative long term returns. The profitability progress is the general direction of Berkshire Hathaway's change in net profit over the period of time. It can combine multiple indicators of Berkshire Hathaway, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -3.8 B | -3.6 B | |
| Operating Income | 123.2 B | 129.4 B | |
| Total Other Income Expense Net | -3 B | -2.9 B | |
| Net Income | 97.1 B | 102 B | |
| Income Tax Expense | 23 B | 24.2 B | |
| Income Before Tax | 120.2 B | 126.2 B | |
| Net Income From Continuing Ops | 77.6 B | 39 B | |
| Net Loss | -26.2 B | -24.9 B | |
| Net Interest Income | -4.9 B | -5.1 B | |
| Interest Income | 14.3 B | 17.3 B | |
| Non Operating Income Net Other | 91.5 B | 96 B | |
| Change To Netincome | 57.7 B | 60.5 B | |
| Net Income Per Share | 44.27 | 46.49 | |
| Income Quality | 0.51 | 0.48 | |
| Net Income Per E B T | 0.80 | 0.48 |
Berkshire Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Berkshire Hathaway. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Berkshire Hathaway position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Berkshire Hathaway's important profitability drivers and their relationship over time.
Use Berkshire Hathaway in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Berkshire Hathaway position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Berkshire Hathaway will appreciate offsetting losses from the drop in the long position's value.Berkshire Hathaway Pair Trading
Berkshire Hathaway Pair Trading Analysis
The ability to find closely correlated positions to Berkshire Hathaway could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Berkshire Hathaway when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Berkshire Hathaway - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Berkshire Hathaway to buy it.
The correlation of Berkshire Hathaway is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Berkshire Hathaway moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Berkshire Hathaway moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Berkshire Hathaway can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Berkshire Hathaway position
In addition to having Berkshire Hathaway in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Other Information on Investing in Berkshire Stock
To fully project Berkshire Hathaway's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Berkshire Hathaway at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Berkshire Hathaway's income statement, its balance sheet, and the statement of cash flows.