1-Year Return on Invested Incremental Capital (1-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 1-year.
Berkshire Hathaway's 1-Year ROIIC % for the quarter that ended in Dec. 2023 was 96.41%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Berkshire Hathaway's 1-Year ROIIC % or its related term are showing as below:
BRK.B's 1-Year ROIIC % is ranked better than 90.83% of 349
companies
in the Insurance industry
Industry Median: 3.12
vs BRK.B: 96.41
Berkshire Hathaway 1-Year ROIIC % Historical Data
The historical data trend for Berkshire Hathaway's 1-Year ROIIC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Berkshire Hathaway's 1-Year ROIIC %
For the Insurance - Diversified subindustry, Berkshire Hathaway's 1-Year ROIIC %, along with its competitors' market caps and 1-Year ROIIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Berkshire Hathaway's 1-Year ROIIC % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Berkshire Hathaway's 1-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Berkshire Hathaway's 1-Year ROIIC % falls into.
Berkshire Hathaway 1-Year ROIIC % Calculation
Berkshire Hathaway's 1-Year ROIIC % for the quarter that ended in Dec. 2023 is calculated as:
1-Year ROIIC %
=
1-Year Incremental Net Operating Profit After Taxes (NOPAT)**
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of NOPAT and Invested Capital was used to calculate 1-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Berkshire Hathaway 1-Year ROIIC % Related Terms
Thank you for viewing the detailed overview of Berkshire Hathaway's 1-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Berkshire Hathaway (Berkshire Hathaway) Business Description
Berkshire Hathaway is a holding company with a wide array of subsidiaries engaged in diverse activities. The firm's core business segment is insurance, run primarily through Geico, Berkshire Hathaway Reinsurance Group, and Berkshire Hathaway Primary Group. Berkshire has used the excess cash thrown off from these and its other operations over the years to acquire Burlington Northern Santa Fe (railroad), Berkshire Hathaway Energy (utilities and energy distributors), and the firms that make up its manufacturing, service, and retailing operations (which include five of Berkshire's largest noninsurance pretax earnings generators: Precision Castparts, Lubrizol, Clayton Homes, Marmon, and IMC/ISCAR). The conglomerate is unique in that it is run on a completely decentralized basis.
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