10 Cash Rich Companies
Corporations hold cash for a variety of reasons, including timing the price of growth-related assets, running day-to-day operations, conducting acquisitions, holding for future investment or acting as a precaution against market uncertainty.
If a company holds more cash or highly liquid assets as a large proportion of its total assets - and relative to its peers - investors may draw insight into the size and scope of a company’s future investments.
To get an idea of the companies that are holding the most cash, the CNBC analytics teamlooked at cash and short term investments held by S&P 500 companies, using data from Capital IQ and Thomson Reuters. The amount was compared to the total value of assets of each company. Companies listed in this slideshow are also divided by sector, since some industries by nature will have vastly different cash holdings when compared to others outside their peer group. For the purpose of this slideshow, “liquid assets” are defined as total cash and short term investments held by an individual company.
So, which S&P 500 companies are the most cash-rich in their sector? Click ahead to find out!
By Giovanny Moreano & Paul Toscano
Posted 27 Feb 2012
Diamond Offshore (DO)
Cash as % of assets: 17.8%
Cash as % of annual revenue: 38%
Total cash and short term investments: $1.24 billion
Energy Sector Averages
Liquid assets as % of total assets: 6.38%
Total liquid assets: $90.99 million
Other Cash-Rich Companies
Devon Energy (DVN): 17.8% of assets
Sunoco (SUN): 17.2% of assets
Priceline.com (PCLN)
Cash as % of assets: 63%
Cash as % of annual revenue: 58.7%
Total cash and short term investments: $2.4 billion
Consumer Discretionary Sector Averages
Liquid assets as % of total assets: 19.99%
Total liquid assets: $25.28 million
Other Cash-Rich Companies
Apollo Group (APOL): 40.7% of assets
Amazon.com (AMZN): 37.9% of assets
Altera Corp (ALTR)
Cash as % of assets: 80.3%
Cash as % of annual revenue: 166.5%
Total cash and short term investments: $3.44 billion
Technology Sector Averages
Liquid assets as % of total assets: 26.72%
Total liquid assets: $388 million
Other Cash-Rich Companies
VeriSign (VRSN): 72.5% of assets
Analog Devices (ADI): 69.5% of assets
Expeditors International Washington (EXPD)
Cash as % of assets: 45.2%
Cash as % of annual revenue: 21.1%
Total cash and short term investments: $1.29 billion
Industrials Sector Averages
Liquid assets as % of total assets: 12.55%
Total liquid assets: $220.1 million
Other Cash-Rich Companies
Fluor (FLR): 27.3% of assets
Masco Corp (MAS): 22.7% of assets
Franklin Resources (BEN)
Cash as % of assets: 50.4%
Cash as % of annual revenue: 94.5%
Total cash and short term investments: $6.75 billion
Financial Sector Averages
Liquid assets as % of total assets: 31.47%
Total liquid assets: $4.53 billion
Other Cash-Rich Companies
BNY Mellon (BK): 47.3% of assets
Citigroup (C): 42.1% of assets
Gilead Sciences (GILD)
Cash as % of assets: 57.2%
Cash as % of annual revenue: 118.1%
Total cash and short term investments: $9.9 billion
Health Care Sector Averages
Liquid assets as % of total assets: 26.16%
Total liquid assets: $236.2 million
Other Cash-Rich Companies
Humana (HUM): 51.5% of assets
Waters Corp. (WAT): 47.1% of assets
Lorillard (LO)
Cash as % of assets: 54.3%
Cash as % of annual revenue: 36.7%
Total cash and short term investments: $1.63 billion
Consumer Staples Sector Averages
Liquid assets as % of total assets: 6.87%
Total liquid assets: $69.69 million
Other Cash-Rich Companies
Sara Lee (SLE): 30.5% of assets
Mead Johnson Nutrition (MJN): 22.9% of assets
MetroPCS Communications (PCS)
Cash as % of assets: 23.7%
Cash as % of annual revenue: 46.3%
Total cash and short term investments: $2.24 billion
Telecom Services Sector Averages
Liquid assets as % of total assets: 3.96%
Total liquid assets: $25.6 million
Other Cash-Rich Companies
Sprint Nextel (S): 11.3% of assets
Verizon Communications (VZ): 6.1% of assets
The Mosaic Company (MOS)
Cash as % of assets: 23%
Cash as % of annual revenue: 32.5%
Total cash and short term investments: $3.6 billion
Materials Sector Averages
Liquid assets as % of total assets: 8.57%
Total liquid assets: $40.15 million
Other Cash-Rich Companies
Sigma Aldrich (SIAL): 21% of assets
Nucor Corp. (NUE): 17.6%
AES Corp (AES)
Cash as % of assets: 10.9%
Cash as % of annual revenue: 24.7%
Total cash and short term investments: $4.35 billion
Utilities Sector Averages
Liquid assets as % of total assets: 2.05%
Total liquid assets: $20.6 million
Other Cash-Rich Companies
Constellation Energy (CEG): 5% of assets
NRG Energy (NRG): 4.6% of assets