Berkshire Hathaway Operating Margin vs. EBITDA
| 0R37 Stock | 484.50 2.50 0.51% |
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 EBITDA vs. Operating Margin 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 operating margin category among its peers. It also is number one stock in ebitda category among its peers totaling about 415,177,701,277 of EBITDA per Operating Margin. 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 EBITDA vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Berkshire Hathaway |
| = | 0.36 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Berkshire Hathaway |
| = | 149.55 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Berkshire EBITDA Comparison
Berkshire Hathaway is currently under evaluation in ebitda category among its peers.
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 | ||
| Interest Income | 47.7 B | 34 B | |
| Operating Income | 12.8 B | 18.4 B | |
| Income Before Tax | 64 B | 48.4 B | |
| Net Loss | -20.5 B | -19.5 B | |
| Net Income | 96.2 B | 49.6 B | |
| Income Tax Expense | -9.8 B | -9.3 B | |
| Change To Netincome | 73.7 B | 77.4 B |
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?
Run Convertibles Funds Thematic Idea Now
Convertibles Funds
Funds or Etfs that invest in debt that is expected to be converted into a predetermined amount of the company equity at some future date. The Convertibles Funds theme has 15 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Convertibles Funds Theme or any other thematic opportunities.
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Additional Tools for Berkshire Stock Analysis
When running Berkshire Hathaway's price analysis, check to measure Berkshire Hathaway's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Berkshire Hathaway is operating at the current time. Most of Berkshire Hathaway's value examination focuses on studying past and present price action to predict the probability of Berkshire Hathaway's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Berkshire Hathaway's price. Additionally, you may evaluate how the addition of Berkshire Hathaway to your portfolios can decrease your overall portfolio volatility.