Quick Ratio

Berkshire Hathaway’s quick ratio of 4.06x means the company has $4.06 in cash, cash equivalents, and other highly liquid assets for every $1 of short-term liabilities — a measure of its ability to cover immediate obligations without selling inventory.

That is sharply above the Financial Services sector median of 0.59x, placing the firm in the 79th percentile among its peers. The year-over-year change, quarter-over-quarter change, and trend over the last eight quarters are all N/A, so no direction can be inferred from recent history. The combination of a very high ratio with no trend data suggests strong current liquidity but leaves uncertainty about whether the cash position is stable, growing, or being drawn down. For a financial services company, such a high ratio can signal ample safety for creditors and low short-term risk, yet it may also imply idle cash that could otherwise be invested for returns. This metric supports the overall NEUTRAL verdict: the liquidity cushion reduces downside risk, but without trend context or evidence of efficient capital use, it does not tilt the outlook decisively positive or negative.

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