Berkshire Hathaway Inc. (NYSE:BRK-B), led by Warren Buffett, is a multinational conglomerate holding company. It owns a diverse range of businesses, including insurance, utilities, railroads, and manufacturing. The company is known for its strong financial performance and strategic investments in companies like Apple and American Express. Berkshire competes with other large conglomerates and investment firms.
On February 22, 2025, BRK-B reported earnings per share of $4.74, surpassing the estimated $4.22. This achievement is part of a broader trend of strong financial performance. In 2024, Berkshire's operating profit surged by 27% to $47.44 billion, driven by significant increases in underwriting earnings and investment income within its insurance businesses. This growth reflects the company's ability to capitalize on favorable market conditions.
Berkshire's revenue of approximately $95.72 billion exceeded the estimated $89.86 billion. The company's fourth-quarter operating profit set a new record, climbing 71% to $14.53 billion. This impressive growth was largely driven by a substantial 302% increase in insurance underwriting profits, which rose to $3.4 billion. Additionally, the company's insurance investment income saw a nearly 50% rise, reaching $4.1 billion.
The conglomerate's financial strength is further highlighted by its cash reserves, which swelled to a record $334 billion. Despite 53% of its 189 operating businesses experiencing a decline in earnings, Berkshire benefited from a significant gain in investment income. This was attributed to improved Treasury Bill yields and an increase in holdings of these short-term securities. In 2024, Berkshire's Class A shares experienced a notable increase of over 25%.
Berkshire Hathaway's financial metrics indicate a strong position in the market. The company has a price-to-earnings (P/E) ratio of approximately 9.65, a price-to-sales ratio of about 3.27, and an enterprise value to sales ratio of around 3.55. The enterprise value to operating cash flow ratio is approximately 27.74, and the earnings yield is about 10.36%. With a debt-to-equity ratio of roughly 0.20 and a current ratio of 25.34, Berkshire demonstrates strong liquidity and a low level of debt compared to its equity.
