Berkshire Hathaway Stock Probability Of Bankruptcy

BRK-B Stock  USD 420.52  3.59  0.86%   
Berkshire Hathaway's odds of distress is less than 3% at the present time. It is unlikely to undergo any financial crisis in the next 24 months. Chance Of Bankruptcy shows the probability of financial distress over the next two years of operations under current economic and market conditions. All items used in analyzing the odds of distress are taken from the Berkshire balance sheet, as well as cash flow and income statements available from the company's most recent filings. Check out Berkshire Hathaway Piotroski F Score and Berkshire Hathaway Altman Z Score analysis.
  

Berkshire Probability Of Bankruptcy 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.
 2021 2022 2023 2024 (projected)
Gross Profit354.6B177.8B316.8B332.6B
Total Revenue354.6B302.1B439.3B461.3B

Probability Of Bankruptcy

 = 

Normalized

Z-Score

More About Probability Of Bankruptcy | All Equity Analysis

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.
Please note, there is a significant difference between Berkshire Hathaway's value and its price as these two are different measures arrived at by different means. Investors typically determine if Berkshire Hathaway is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Berkshire Hathaway's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

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.
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.
Competition

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 related companies.

Berkshire Hathaway Main Bankruptcy Drivers

201920202021202220232024 (projected)
Return On Assets0.09960.04870.0938(0.0241)0.08990.0944
Asset Turnover0.350.40.330.320.410.24
Net Debt39.2B68.9B26.1B86.9B90.2B94.8B
Total Current Liabilities44.4B45.6B45.2B62.5B8.3B7.8B
Non Current Liabilities Total170.8B187.6B202.2B197.3B491.0B515.5B
Total Assets817.7B873.7B958.8B948.5B1.1T1.1T
Total Current Assets163.8B174.1B186.3B176.9B211.8B222.4B
Total Cash From Operating Activities38.7B39.8B39.4B37.2B49.2B51.7B

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

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.
Berkshire Hathaway Inc., through its subsidiaries, engages in the insurance, freight rail transportation, and utility businesses worldwide. The company was incorporated in 1998 and is headquartered in Omaha, Nebraska. Berkshire Hathaway operates under InsuranceDiversified classification in the United States and is traded on NYQ Exchange. It employs 360000 people.

Pair Trading with Berkshire Hathaway

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.

Moving together with Berkshire Stock

  0.84ATH-PD Athene HoldingPairCorr
  0.7ATH-PB Athene HoldingPairCorr
  0.7ATH-PC Athene HoldingPairCorr

Moving against Berkshire Stock

  0.42FGF FG Financial GroupPairCorr
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.
Pair CorrelationCorrelation Matching
Check out Berkshire Hathaway Piotroski F Score and Berkshire Hathaway Altman Z Score analysis.
You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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Please note, there is a significant difference between Berkshire Hathaway's value and its price as these two are different measures arrived at by different means. Investors typically determine if Berkshire Hathaway is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Berkshire Hathaway's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.