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Berkshire Hathaway BRK.B Accretion (amortization) of discounts and premiums on investments

Other financials

Income statement

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Revenue$93.7B+4.4%
Net income$10.1B+120%
EPS (diluted)$4.68+120%

Balance sheet

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Total debt$6.3B+4.9%
Total equity$727.18B+11.1%
Total assets$1.25T+7.5%

Cash flow

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Operating cash flow$10.4B-4.3%
CapEx$5.0B+16.5%
Free cash flow$5.5B-17.7%

Valuation

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Market cap$1.06T-10.0%
P/E14.7×+0.1×
P/S2.8×-0.4×

Profitability

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Net margin19.3%-2.5pp
FCF margin6.4%—

Returns & leverage

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Return on equity10.5%-2.7pp
Debt / equity0×0.0×

Questions, answered.

What does accretion (amortization) of discounts and premiums on investments mean?
This represents the non-cash adjustment for the accretion of discounts or the amortization of premiums on investment securities held by the company. It aligns the carrying value of investments with their market value or maturity value over time. This adjustment is necessary to reconcile net income with the actual cash flows generated by the investment portfolio.