BRK-BNEUTRAL

Gross Margin

28.8%

Higher than 7% of Financial Services sector peers

Updated 1102h ago

Sector Performance

7th percentile

BRK-B

28.8%

Sector Median

68.5%

Sector Avg

67.7%

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Deep Analysis

Berkshire Hathaway’s gross margin of 28.8% means that for every dollar of revenue, the company keeps about 28.8 cents after covering the direct costs of producing its goods or services.

This figure sits far below the financial‑services sector median of 76.6%, placing it at the 5th percentile among peers — indicating that the company retains a much smaller share of revenue as gross profit than most competitors. Both the year‑over‑year and quarter‑over‑quarter changes are listed as N/A, so no recent trend is available to assess whether margins are moving higher or lower. Given the low level of gross margin combined with the absence of trend data, the metric points to a potential risk tied to cost structure or business mix, but without a directional signal it is unclear if this risk is intensifying or improving. This underwhelming relative standing supports the overall NEUTRAL verdict, as the poor percentile rank warns of competitive disadvantage, yet the lack of a negative trend prevents a more bearish stance.

Frequently Asked Questions

What does the Gross Margin tell investors about BRK-B?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does BRK-B's Gross Margin compare to its sector?

BRK-B's Gross Margin of 28.8% compares to a Financial Services sector median of 68.5%, placing it in the 7th percentile.

Who are BRK-B's closest peers by Gross Margin?

The closest Financial Services peers by Gross Margin include: CACC (63.0%), HDB (58.4%), COF (57.8%), AFL (57.5%), HSBC (56.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.