15 Companies with Zero Debt (Q1 2011)

Throughout the financial crisis, large debt loads weighed on company balance sheets and had serious implications for the firms that let their borrowing get out of control.

Other companies, however, have a history of operating with low debt levels, and many choose to issue no debt at all. Instead of debt, these companies hold cash and liquid investments in order to make acquisitions, investments and to run daily operations.

Although too much debt can quickly turn into a problem, zero debt does not always translate to a rising stock price, as you can see from the historical data provided in the following pages. Regardless, some companies have been successful in turning their zero-debt situation into a very favorable operating model.

With data from Capital IQ drawn from the most recent quarterly statements across the S&P 500, here are 15 companies that report having no debt on their balance sheets.

By Giovanny Moreano& Paul Toscano
Posted 5 Jan 2011

Note: Companies are ranked by the amount of cash and short term investments held on their balance sheets. In this case, total debt includes the sum of short-term borrowings, current portion of long-term debt, current portion of capital leases, long-term debt, capital leases, current finance division debt and non-current finance division debt, but does not include all possible liabilities.

Total debt: $0
Cash & ST investments: $304 million
Liquid assets (as % of total assets): 43%

Historical Debt and Price Levels, Per Year 
2008: $0 total debt, -5.4% share price
2009: $0 total debt, +40.4% share price
2010: $0 total debt, -9.8% share price

See QLGC Real-Time Quote and Full Financials

Total debt: $0
Cash & ST investments: $429 million
Liquid assets (as % of total assets): 32.4%

Historical Debt and Price Levels, Per Year
2008: $0 total debt, -19.8% share price
2009: $0 total debt, +131.7% share price
2010: $0 total debt, +145.7% share price

See FFIV Real-Time Quote and Full Financials

Total debt: $0
Cash & ST investments: $504 million
Liquid assets (as % of total assets): 31.4%

Historical Debt and Price Levels, Per Year 
2008: $0 total debt, -45% share price
2009: $0 total debt, +133.6% share price
2010: $0 total debt, +2.3% share price
See URBN Real-Time Quote and Full Financials

Total debt: $0
Cash & ST investments: $741 million
Liquid assets (as % of total assets): 44.5%

Historical Debt and Price Levels, Per Year
2008: $0 total debt, -48.9% share price
2009: $0 total debt, +111.9% share price
2010: $0 total debt, +31% share price

See TDC Real-Time Quote and Full Financials

Total debt: $0
Cash & ST investments: $845 million
Liquid assets (as % of total assets): 42%

Historical Debt and Price Levels, Per Year
2008: $0 total debt, -36.6% share price
2009: $0 total debt, +133.7% share price
2010: $0 total debt, +47.7% share price

See RHT Real-Time Quote and Full Financials

Total debt: $0
Cash & ST investments: $981 million
Liquid assets (as % of total assets): 42%

Historical Debt and Price Levels, Per Year
2008: $0 total debt, -60.7% share price
2009: $0 total debt, +138.9% share price
2010: $0 total debt, -15.1% share price

See ISRG Real-Time Quote and Full Financials

Total debt: $0
Cash & ST investments: $1.06 billion
Liquid assets (as % of total assets): 39%

Historical Debt and Price Levels, Per Year
2008: $0 total debt, -25.54% share price
2009: $0 total debt, +4.51% share price
2010: $0 total debt, +57% share price

See EXPD Real-Time Quote and Full Financials

Total debt: $0
Cash & ST investments: $1.1 billion
Liquid assets (as % of total assets): 50.6%

Historical Debt and Price Levels, Per Year
2008: $126m total debt, -43.4% share price
2009: $0 total debt, +6.68% share price
2010: $0 total debt, +42.7% share price

See NOVL Real-Time Quote and Full Financials

Total debt: $0
Cash & ST investments: $1.14 billion
Liquid assets (as % of total assets): 44%

Historical Debt and Price Levels, Per Year
2008: $0 total debt, -60.5% share price
2009: $52m total debt, +29.3% share price
2010: $0 total debt, +50.3% share price

See ADSK Real-Time Quote and Full Financials

Total debt: $0
Cash & ST investments: $1.7 billion
Liquid assets (as % of total assets): 36.9%

Historical Debt and Price Levels, Per Year
2008: $0 total debt, -72.5% share price
2009: $0 total debt, +10.7% share price
2010: $0 total debt, -7.7% share price

See ERTS Real-Time Quote and Full Financials

Total debt: $0
Cash & ST investments: $1.9 billion
Liquid assets (as % of total assets): 45.4%

Historical Debt and Price Levels, Per Year
2008: $0 total debt, -46.79% share price
2009: $0 total debt, +151% share price
2010: $0 total debt, +61.7% share price

See CTSH Real-Time Quote and Full Financials

Total debt: $0
Cash & ST investments: $2.4 billion
Liquid assets (as % of total assets): 38.2%

Historical Debt and Price Levels, Per Year
2008: $0 total debt, -35.1% share price
2009: $0 total debt, +85.4% share price
2010: $0 total debt, +38.4% share price

See BRCM Real-Time Quote and Full Financials

Total debt: $0
Cash & ST investments: $3.4 billion
Liquid assets (as % of total assets): 55.4%

Historical Debt and Price Levels, Per Year
2008: $0 total debt, -30.1% share price
2009: $0 total debt, +26.1% share price
2010: $0 total debt, -0.4% share price

See FRX Real-Time Quote and Full Financials

Total debt: $0
Cash & ST investments: $5.3 billion
Liquid assets (as % of total assets): 26.7%

Historical Debt and Price Levels, Per Year
2008: $1b total debt, -57.9% share price
2009: $0 total debt, +68.6% share price
2010: $0 total debt, +18.3% share price

See EBAY Real-Time Quote and Full Financials

Total debt: $0
Cash & ST investments: $25.6 billion
Liquid assets (as % of total assets): 34.1%

Historical Debt and Price Levels, Per Year
2008: $0 total debt, -56.9% share price
2009: $0 total debt, +146.9% share price
2010: $0 total debt, +53.7% share price

See AAPL Real-Time Quote and Full Financials