Berkshire Hathaway Inc.: $334B Cash Hoard and FY2024 Financials

Immediate development: cash, scale and strategic moves#

Berkshire Hathaway closed its fiscal year 2024 sitting on an extraordinary liquidity position: $334.2 billion in cash and short-term investments on the balance sheet as of 2024-12-31, while reporting $371.43 billion of revenue and $89.00 billion of net income for the year. The company’s market capitalization at the time of the latest quote in our dataset is about $1.044 trillion and the share price is shown at $483.82 (down -1.06% on the quote). Those headline numbers frame the single most consequential question for the conglomerate: how to deploy unprecedented scale without compromising Berkshire’s longstanding capital allocation discipline. The Q2 2025 13F activity—publicly reported increases in [CVX] and [NUE], a modest UnitedHealth stake and a trimming of [AAPL]—sharpens that focus and provides a window into how management is translating cash into portfolio tilts and optionality (AInvest; Benzinga.

The tension is inherently practical: Berkshire’s balance sheet can underwrite very large whole-business purchases, but management continues to act with patience. The company’s FY2024 results demonstrate both operational scale—gross profit of $86.58 billion and operating income of $59.44 billion—and the earnings variability that stems from investment results and cyclical businesses. Understanding whether the current cash position represents deferred opportunism or a structural change in capital allocation requires integrating the FY2024 financials with the portfolio moves disclosed in Q2 2025 and with the historical playbook articulated by Berkshire’s management (Berkshire Hathaway — acquisition philosophy.

This report synthesizes the FY2024 financials, balance sheet structure and recent portfolio activity to draw concrete implications for capital deployment, leverage capacity and earnings quality. Wherever specific figures are used they are calculated from the FY2024 statements (filed 2025-02-24) and the Q2 2025 13F reporting summarized in public filings and market coverage sources above.

Financial performance: revenue, margins and headline trends#

Berkshire posted $371.43 billion of revenue in FY2024, up +1.91% from $364.48 billion in FY2023. The company’s operating income rose to $59.44 billion, producing an operating margin of 16.00% for FY2024 (operating income / revenue = 59.44 / 371.43). Gross profit of $86.58 billion yielded a gross margin of 23.31%. Net income for the year was $89.00 billion, giving a net margin of 23.96% (89.00 / 371.43). These margin levels are elevated relative to the 2022 trough that included significant investment losses, and they reflect both the insurance float business and the consolidated earnings from operating subsidiaries.

Year-over-year dynamics were mixed. Revenue growth was modest at +1.91%, while net income declined -7.51% versus FY2023 (96.22 → 89.00), reflecting volatility in investment and non-operating results across periods. Operating income improved YoY (+23.45% from 48.12 to 59.44), indicating stronger core operating performance even as total net income was affected by investment gains/losses and tax/other items. Free cash flow for FY2024 was $11.62 billion, down sharply from the prior year, and operating cash flow was $30.59 billion, also lower than FY2023’s $49.20 billion—an operating cash flow decline of -37.83% by our calculation ((30.59 - 49.2) / 49.2).

Taken together, the pattern is one of substantial operating scale with significant volatility in cash generation and investment-related earnings. The operating margin uplift to 16.00% signals durable underlying profitability in Berkshire’s operating businesses, while free cash flow generation—FCF margin 3.13% (11.62 / 371.43)—remains modest relative to revenue because Berkshire’s conglomerate cash conversion is influenced by insurance float, working capital swings and capital expenditure patterns across subsidiaries.

Table — Income Statement Snapshot (FY2021–FY2024)#

(Income-statement figures are taken from Berkshire’s FY2024 financial statements filed 2025-02-24 and earlier annual filings.)

Balance sheet, leverage and liquidity: an abundance of optionality#

Berkshire’s balance sheet at 2024-12-31 shows total assets of $1,153.88 billion, total liabilities of $502.23 billion and total stockholders’ equity of $649.37 billion. The company carries total debt of $143.53 billion and net debt of $95.80 billion after subtracting cash and cash equivalents of $47.73 billion. Importantly, the dataset reports cash and short-term investments of $334.2 billion, which is the defining metric for Berkshire’s external optionality: this pool represents immediately deployable liquidity (cash, cash equivalents and short-term Treasuries) that can be used for whole-company acquisitions, large share repurchases or opportunistic purchases of securities.

Calculating leverage metrics from the FY2024 statement gives two useful perspectives. Using total debt divided by shareholders’ equity yields a debt-to-equity ratio of 22.11% (143.53 / 649.37). Using long-term debt only yields 18.47% (119.9 / 649.37). Those leverage levels are conservative for a conglomerate of Berkshire’s scale and are consistent with an explicit preference for maintaining financial flexibility while retaining capacity for large acquisitions.

A second key balance-sheet datapoint is enterprise value. Taking the market capitalization of $1,044.22 billion (profile figure) and adjusting for debt and the large short-term investment balance (EV = market cap + total debt - cash & short-term investments), we calculate an enterprise value of approximately $853.55 billion (1,044.22 + 143.53 - 334.2). Dividing that EV by FY2024 EBITDA of $128.43 billion produces an EV/EBITDA multiple of approximately 6.65x on the FY2024 basis (853.55 / 128.43). This computed multiple diverges materially from the dataset’s TTM enterprise-value/EBITDA figure of 11.31x; the difference is explained by timing definitions (TTM vs single-year FY basis), alternate cash classifications and possible use of market-cap snapshots on different dates. We flag this discrepancy and prioritize the transparent EV derivation shown here while noting the published TTM multiple for cross-reference.

Table — Balance Sheet & Cash Flow (FY2021–FY2024)#

(Balance-sheet and cash-flow figures are sourced from Berkshire’s fiscal filings; cash & short-term investments is reported on the balance sheet line for each year.)

Capital allocation: cash, repurchases and the Q2 2025 portfolio tilt#

Capital allocation is the strategic heartbeat of Berkshire. The company’s FY2024 cash-and-short-term-investments balance of $334.2 billion (and public reporting that placed the mid-2025 balance near $344B, per Q2 13F coverage) gives management the optionality to pursue large, whole-company deals while retaining the ability to make opportunistic public-market moves. The Q2 2025 13F disclosures—covered in major market outlets—show a meaningful increase in [CVX] exposure (additions measured in the single-digit billions), establishment or expansion of a [NUE] stake (~$857 million reported position), a small UnitedHealth stake and a reduction of roughly 20 million [AAPL] shares in the quarter (Quiver Quant; AInvest.

Those moves reflect two complementary priorities. First, the increase in energy and industrial exposure signals a strategic shading toward businesses producing large, resilient free cash flows and operating earnings. Chevron offers a dividend yield and commodity-linked cash generation; Nucor provides manufacturing exposure tied to U.S. infrastructure demand. Second, trimming [AAPL] reduces portfolio concentration risk—concentration that had been a defining feature of Berkshire’s public-equity book for years. The combination of a very large cash buffer and targeted reallocations within the public portfolio suggests a preference for sectoral diversification while maintaining the option to deploy capital in transformational transactions.

Historically, Berkshire prefers whole-business acquisitions or large, decisive capital deployment rather than small incremental bets. The company’s repurchase activity in the FY2021–FY2024 period (common stock repurchased: -$27.06B in 2021, -$7.85B in 2022, -$9.17B in 2023, -$2.92B in 2024) demonstrates selective buybacks but not an aggressive share-repurchase regime at current scale relative to cash on hand. The data point that stands out is simply scale: with > $300B in short-term liquidity, Berkshire can transact at sizes that few corporate buyers can match.

Earnings quality and cash conversion: caution beneath the headline profit#

Reported net income can mask the heterogeneity of Berkshire’s earnings drivers. FY2024’s $89.00 billion net income contrasts with only $30.59 billion of operating cash flow and $11.62 billion of free cash flow. The disparity arises because Berkshire’s consolidated net income includes substantial mark-to-market gains or losses on investment portfolios, insurance-related adjustments and non-cash accounting items. In FY2024, the company generated operating income and margins that are demonstrably strong, but the conversion to free cash flow was limited in the year.

This divergence matters because the durability of Berkshire’s earnings is tested by how much cash the operating businesses actually produce and by the volatility of investment results. An investor focusing on cash generation should note the steep decline in operating cash flow from FY2023 to FY2024 (49.20 → 30.59, -37.83%), driven by working-capital swings and the timing of insurance underwriting cash flows. That decline reduced free cash flow generation materially and explains why management’s default posture remains to hold liquidity rather than accelerate large-scale deployment.

In short, Berkshire’s FY2024 accounting earnings are robust, but cash generation in the year was weaker and more volatile—precisely the dynamic that underpins management’s patience with spending the extraordinary cash balance.

Valuation context and noted data discrepancies#

Using market capitalization and FY2024 financials, we calculated enterprise value and key multiples to provide context. Our EV calculation (market cap + total debt - cash & ST investments) produced an EV of $853.55 billion and an FY2024 EV/EBITDA of ~6.65x (853.55 / 128.43). This contrasts with the dataset’s TTM EV/EBITDA figure of 11.31x. The difference can be explained by (a) the dataset’s use of trailing twelve months metrics and alternate cash classifications, (b) use of different market-cap snapshots, and (c) differing EBITDA definitions (TTM vs FY). We present our FY-based EV/EBITDA transparently and flag the dataset number for readers’ cross-checking.

Other ratio observations: FY2024 return on equity using net income / average equity (we use year-end equity for a conservative shorthand) gives ROE ≈ 13.71% (89.00 / 649.37). Debt-to-equity using total debt is 22.11%, while long-term debt to equity is 18.47%—both conservative for a global conglomerate of this size.

These calculated multiples and ratios illustrate two themes: the firm’s operating businesses generate attractive margins at scale, and the balance sheet provides substantial headroom for large transactions without meaningfully leveraging the enterprise.

Strategic implications: continuity with selective re-weighting#

The combined evidence points to continuity in Berkshire’s capital-allocation philosophy—patient, margin-of-safety oriented and scale-focused—with selective re-weighting toward energy and industrials in the public portfolio. The Q2 2025 portfolio changes (increased [CVX], added/expanded [NUE], new [UNH] stake, trimmed [AAPL]) are consistent with seeking durable cash flows and reducing concentration risk in mega-cap technology. Those moves are incremental, not transformational, but they reveal the types of assets Berkshire will add while it awaits sizable whole-company opportunities.

Leadership transition dynamics add context but not a deterministic read: management succession is on investors’ minds and Greg Abel’s operational background is consistent with the tilt toward industrial and energy holdings, yet the fundamental principle—buy only when prices and risk profiles are attractive—remains the company’s constraint. The sizeable cash balance preserves the option to act decisively, but it also reflects an absence of attractive whole-business targets meeting Berkshire’s criteria in the recent period.

What this means for investors#

Investors should view Berkshire’s position through three linked lenses: balance-sheet optionality, earnings quality and portfolio concentration. The company’s > $300B of short-term liquidity creates the capacity to make very large acquisitions that could materially shift future earnings power. At the same time, FY2024 cash conversion was weaker than reported net income, highlighting the importance of distinguishing recurring operating cash flow from investment-driven accounting gains. Finally, the recent public-portfolio adjustments reduce concentration in [AAPL] and increase exposure to cyclical but cash-generative sectors—a strategic shading that matters mainly for the composition of Berkshire’s public-equity earnings going forward.

Investors tracking Berkshire should watch three operational signals: announced acquisitions or divestitures (which would reveal the use of cash at scale), changes in buyback cadence relative to declared liquidity, and the trend in operating cash flow and free cash flow conversion as the most direct indicators of the underlying cash-generating capacity of the consolidated businesses.

Key takeaways#

Berkshire finished FY2024 with $334.2B in short-term liquidity and $89.00B of reported net income. Operating margins improved to 16.00% even as free cash flow remained modest at $11.62B. Calculated leverage metrics show conservative balance-sheet usage with total-debt-to-equity ≈ 22.11% and an FY2024 EV/EBITDA (our FY-based calc) near 6.65x, although dataset TTM multiples differ. Recent Q2 2025 public-portfolio moves—adding [CVX] and [NUE], trimming [AAPL], and a small [UNH] stake—signal a tactical tilt toward cash-generative energy and industrial assets while preserving the flexibility to execute large acquisitions when opportunities meet Berkshire’s criteria (Quiver Quant; AInvest.

Conclusion#

Berkshire Hathaway’s FY2024 results and its mid-2025 public-portfolio activity tell a coherent story: a conglomerate that remains deeply cash-rich, operationally profitable, and strategically patient. The company’s enormous short-term investment balance is the defining strategic asset—it underwrites the possibility of transformative acquisitions while also constraining management to a conservative deployment posture until the right targets appear. Accounting earnings look solid, but cash-generation variability cautions that reported net income and deployable cash can diverge materially in any given year. For stakeholders, the central question is not whether Berkshire has the means to act; it does. The question is whether management will find opportunities that meet the firm’s historic thresholds for size, safety and return—and whether future activity sustains the current sectoral tilt toward energy and industrials or reinstates a heavier technology weighting.

(Selected data are drawn from Berkshire Hathaway FY2024 filings (filed 2025-02-24) and Q2 2025 portfolio disclosures summarized in public filings and market coverage listed in the sources.)