Preview

SWOT Analysis: Berkshire Hathaway Home Industry

Good Essays
Open Document
Open Document
728 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
SWOT Analysis: Berkshire Hathaway Home Industry
Berkshire Hathaway “is a holding company that owns subsidiaries” like GEICO, Dairy Queen, Berkshire Hathaway Home Services, and Duracell (Berkshire Hathaway Energy SWOT Analysis, 2016). For generations Berkshire Hathaway, has engaged in” transmission, storage, distribution and supply of energy operating in the US, the UK and Canada” (Berkshire Hathaway Energy SWOT Analysis, 2016). Berkshire is incorporated in the State of Delaware, and its Corporate Headquarters is located at 3555 Farnam Street, Omaha Nebraska 68131. In 2016 Berkshire Hathaway was ranked #4 on Fortune 500 and the company is represented on the stock market by the symbols NYSE: BRK.A. The company recorded revenues of $210,821 million during the financial year ended December 2015 …show more content…
Inventories consist of manufactured goods and goods acquired for resale. Manufactured inventory costs include raw materials, direct and indirect labor, and factory overhead. Net sales for NYSE: BRK.A 2015 (as shown in Fig 1) was $210, 821 (in millions) and in 2014 was $194,673 (in millions), their total assets (as shown in Fig 2) for 2015 $552,257 (in millions) and in 2014 525,867 (in millions). Increased net sales produce a figure based on sales produced by NYSE: BRK.A and the cash it anticipates on return. Total assets symbolize present and future assets which equates total liabilities and equity stake currently held on the books by a firm's equity …show more content…
Being an employee of Berkshire Hathaway I receive profit sharing every year the company turns a profit of 10%, if 10% of my salary. The first 10% goes towards my retirement and the rest I can net, as a bonus. This is because Warren Buffet the CEO of NYSE:BRK.A believes in making employee’s “independently wealthy, by rewarding them for making the company profitable (Berkshire Hathaway Inc., 2015). After reviewing Berkshire’s SEC10-K I now have a better understanding of how revenue, sales, and property factor into the profit sharing I receive every year the company is profitable. I know have the tools necessary to analyze the company’s portfolio and financial

You May Also Find These Documents Helpful

  • Good Essays

    Problem 5-9

    • 3989 Words
    • 16 Pages

    purposes. Its beginning inventory for the current year was $8,000,000. Its ending inventory for the current year…

    • 3989 Words
    • 16 Pages
    Good Essays
  • Good Essays

    Cash and Accounts Receivable in Current Assets- the sum for Cash was found by multiplying the total operating revenue ($56,700) by 25%, which equals the $42,525 in cash. This leaves the remaining $14,175 as credit, which belongs in Accounts Receivable.…

    • 628 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Inventory will increase from the current amount of $9,100 to $20,819 by the end of projected period, and Prepaid Assets will climb from $2,500 to $5,816. Total Fixed Assets are not projected to increase, the property and equipment assets associated with Total Fixed assets will depreciate stagnantly by $15,000 over the 5 year projected period. The Asset category, “Other” will increase from $988 to $2,107. Along with the increase of these asset accounts, the Liabilities Account of Account Payable will increase from $147,179 to $365,682 by the end of 2019.…

    • 547 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    b) ASC 926-330-35-1: This references how an entity can evaluate their inventory at the end of a period. Manly to do with products help for sale, meaning items that are in inventory and that your business is going to be selling to clients. The inventory can be evaluated at the net realizable value, meaning the sale of the product minus the cost associated with it.…

    • 312 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    IFRS vs ASPE

    • 487 Words
    • 2 Pages

    Inventory is defined as “assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or in the rendering of services”. The cost of inventory is measured at the lower of cost and net realizable value. The IFRS accounting for inventory is generally converged with ASPE. The only difference between IFRES and ASPE in the accounting for inventory is with borrowing costs. Since some inventory products require significant manufacturing time (qualifying assets), a manufacturer will finance its operating costs by borrowing money. Under ASPE we can choose to capitalize borrowing costs relating to inventory that takes substantial time to get it ready for sale. In comparison with IFRS, borrowing costs associated with qualifying assets are capitalized.…

    • 487 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The Total Assets from the company represent a figure of 21,300 in the latest year, which represent a decrease of 3.82% from the previous year. The Current Assets sum up a total of 30.44% and 32.31% of the Total Assets as of January 2009 and January 2010 dates respectively, which represent a real growth, between the dates, of $142 to reach the $6,882. Part of this growth is due to the increase of 29.1% of the Cash and Cash Equivalents account, which in the later date is valued as $1,686; it also increase its participation in the total assets from 5.9% to 7.92% from one year to another. Also worthwhile mentioning is the significant reduction of the Accounts Receivable of 18.45% which varied $81 from the $439 figure we had in the FY08.…

    • 803 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Home depot is the largest center retailer in the U.S and operating 478 warehouse stores. It is located in 19 states around the west coast, southern western, and northeastern region. The company makes sure that all the stores were large enough to stock at least 25,000 different items. Their competitors normally stock up 10,000 items. California and Florida are the two states that have the most home depot outlets and are clustered around urban areas. Home depot incorporated in 1978 and first opened in Atlanta, Georgia. The majority of home depot’s employees work full-time and 10% of home depot’s sale personnel work part-time. Home depot faced some problems such as hiring unskilled workers, low-paid employees and poor services at the operation…

    • 146 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    The gross amount of inventory at the end of 2006 is $247,795.00, and at the end of 2007 is $232,872.00…

    • 311 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Fin Homework

    • 769 Words
    • 4 Pages

    1. Swim Suits Unlimited is in a highly seasonal business, and the following summary balance sheet data show its assets and liabilities at peak and off-peak seasons (in thousands of dollars):…

    • 769 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Case 9 Thor

    • 414 Words
    • 5 Pages

    5. According to the data, Thor is managing its inventory well relative to its competition. Although they…

    • 414 Words
    • 5 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Over the years online shopping has increase astonishingly among the consumers due to convenience and variety of products to choose. To compete Best Buy needs to sell shopping experience that cannot be match with online shopping. First they need to eliminate the warehouse format and transforms into a showroom format which helps customer interact with. The next is to add refreshment areas such as coffee shops, music rooms and game rooms which help to increase duration of stay in the store and chances of selling more products and last with improve shopping experience customer satisfaction can be gain and face to face employees consulting about the product details which no internet retailing can match…

    • 115 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    Weekly Reflection

    • 461 Words
    • 2 Pages

    Inventory is one of the most prominent items on the balance sheet. The inventory position shows how methodical management is with stockholder assets and how certain they are in the businesses' forthcoming sales. In the majority of circumstances the inventory would be summarized at its expense; nevertheless, inventory could be decreased lower than cost when there is confirmation that the assessment of the merchandise, when marketed, would be below the cost. This may develop on account of extinction, decline, or relevant price adjustments. The purpose for why inventory is palpable to an income statement is that inventory figures are utilized in the calculation of the cost acquired to execute the commodities exchanged throughout the duration.…

    • 461 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Balance sheet :- it’s a snapshot of firms financial position in the last day of given period . and a balance sheet changes daily because of :-…

    • 669 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    It is not until Alex's job is in jeopardy that he decides to devour into his…

    • 1038 Words
    • 5 Pages
    Powerful Essays