Scenario 25: Financial Statement Analysis - Berkshire Hathaway Inc.

Berkshire Hathaway Inc. has reported the following financial data for the fiscal year ended December 31, 2023:

• Total Assets: $961,316 million
• Total Liabilities: $558,408 million
• Net Income: $52,914 million
• Total Revenue: $561,856 million
• Total Expenses: $508,942 million
• Average Shareholders' Equity: $402,908 million

Calculate the following financial ratios for Berkshire Hathaway Inc.:

a) Return on Assets (ROA) b) Return on Equity (ROE) c) Debt-to-Equity Ratio d) Gross Profit Margin e) Net Profit Margin

Interpret each ratio and discuss the financial performance of Berkshire Hathaway Inc. based on these ratios.