Debt-to-Equity Ratio
Higher than 7% of Financial Services sector peers
Updated 119h ago
Sector Performance
7th percentileBRK-B
0.18x
Sector Median
0.71x
Sector Avg
1.60x
Deep Analysis
Berkshire Hathaway’s debt-to-equity ratio of 0.18x measures the company’s total debt relative to shareholders’ equity, indicating that it uses very little borrowed money compared to its own funds.
This ratio sits well below the Financial Services sector median of 0.71x, placing the company at the 7th percentile among its peers, meaning only 7% of sector firms have an even lower debt burden. The year-over-year change is not available, but the quarter-over-quarter movement shows a 10.0% decline from the prior quarter’s 0.20x. The combination of an already minimal debt level and a further reduction suggests a very conservative capital structure that lowers financial risk, though it may also signal limited leverage for growth opportunities. This metric supports the overall NEUTRAL verdict because while the low debt minimizes default risk—a positive for stability—it does not by itself indicate a catalyst for outperformance, aligning with a balanced view.
Frequently Asked Questions
What does the Debt-to-Equity Ratio tell investors about BRK-B?
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
How is the Debt-to-Equity Ratio calculated?
Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.
How does BRK-B's Debt-to-Equity Ratio compare to its sector?
BRK-B's Debt-to-Equity Ratio of 0.18x compares to a Financial Services sector median of 0.71x, placing it in the 7th percentile.
Who are BRK-B's closest peers by Debt-to-Equity Ratio?
The closest Financial Services peers by Debt-to-Equity Ratio include: SCHW (0.67x), IBN (0.61x), COIN (0.59x), AMP (0.53x), HSBC (0.52x).
The Formula
Total Debt / Shareholders' Equity
Why It Matters
Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.
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0.18x
Sector Median
0.71x
Sector Avg
1.60x
How BRK-B's Debt-to-Equity Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.