BRK-BNEUTRAL

Return on Equity (ROE)

9.3%

Higher than 27% of Financial Services sector peers

Updated 864h ago

Sector Performance

27th percentile

BRK-B

9.3%

Sector Median

13.9%

Sector Avg

16.8%

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Deep Analysis

Berkshire Hathaway's Return on Equity (ROE) of 9.3% means that for every dollar of shareholder equity, the company generated about 9.3 cents in profit over the past year – a measure of how efficiently it uses investors' capital.

This sits below the Financial Services sector median of 13.9%, placing the company at the 27th percentile among its peers, indicating that most competitors produce higher returns on equity. The year-over-year change, quarter-over-quarter change, and trend over the last eight quarters are all listed as N/A, so no directional information is available from this metric alone. Because the current ROE is below the sector average and there is no trend data, the combination suggests neither a clear opportunity nor a pressing risk – it's a moderate underperformance without evidence of worsening or improving. This metric supports the overall NEUTRAL verdict, as the below-median profitability does not justify a bullish case, but the lack of negative trend and still-positive absolute return keeps it from being outright bearish.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about BRK-B?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does BRK-B's Return on Equity (ROE) compare to its sector?

BRK-B's Return on Equity (ROE) of 9.3% compares to a Financial Services sector median of 13.9%, placing it in the 27th percentile.

Who are BRK-B's closest peers by Return on Equity (ROE)?

The closest Financial Services peers by Return on Equity (ROE) include: AFL (12.4%), ARES (12.3%), PNC (11.4%), RF (11.3%), PRU (11.0%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.