Berkshire Hathaway Inc.

The Beneish M-Score for 2024 is -2.261. It falls below -1.78, so it is not in the elevated manipulation-risk zone. In plain terms, this screening model did not flag the 2024 figures for a closer read on manipulation grounds. That does not confirm the numbers are free of issues, and the score is only a screen. The Piotroski F-Score, Altman Z-Score and Fog Index are not on file in this dataset, so no values are given for them. The Altman Z-Score would also require caution for a financial firm such as this one, but no zone is available here. Operating cash flow relative to net income was 0.34 in 2024, and revenue declined 2.0% year over year, from $254.91 billion to $249.71 billion. Balance sheet strength is visible in the reported figures. Total shareholders' equity was $700.4 billion at September 30, 2025, up from $651.7 billion at December 31, 2024. Cash and cash equivalents at the insurance and other segment rose to $72.2 billion from $44.3 billion, and short-term U.S. Treasury Bill holdings were $305.4 billion, compared with $286.5 billion. Equity securities were $283.2 billion. Management's narrative in the 10-K excerpt emphasizes that internal control over financial reporting was effective as of December 31, 2025, and that Deloitte & Touche LLP audited it. The 10-K MD&A text itself, the risk factor discussion and any news items are not present in the data, so the analysis relies on the financial statements, the audit report and the 10-Q. Readers may want to look at the full MD&A and risk factor sections of the 10-K for management's explanation of the decline in investment gains and the equity method swing.

Catalyst.The most recent results in the data cover the nine months ended September 30, 2025, from the 10-Q. Total revenues were $277.2 billion, versus $276.5 billion in the first nine months of 2024. Insurance premiums earned rose to $66.4 billion from $65.5 billion, and freight rail transportation revenues reached $17.4 billion from $17.2 billion. Net earnings attributable to Berkshire shareholders, however, fell to $47.8 billion from $69.3 billion. The main drivers were investment gains of $21.9 billion, down from $46.2 billion, and equity method results that swung to a $4.3 billion loss from $967 million of earnings. The 10-K MD&A narrative is not included in the excerpt provided, so this reading relies on the reported figures.

Hidden risk.The clearest tension is between reported earnings and cash. For 2024, operating cash flow of $30.59 billion was about 0.34 times net income of $89 billion. In the first nine months of 2024, investment gains of $46.2 billion were a large share of pre-tax results. Reported profit therefore depends heavily on gains that do not arrive as operating cash. The filings also flag critical audit matters on unpaid losses and loss adjustment expenses ($119.8 billion at September 30, 2025) and on retroactive reinsurance claim liabilities ($31.3 billion). Both involve high estimation judgment. Total notes payable and other borrowings were about $127.2 billion across insurance and other and railroad, utilities and energy, and readers may want to look at how those obligations are structured.