The Most Cash-Rich Companies
Corporations hold large amounts of cash for a variety of reasons, including speculation on the price of assets, corporate acquisitions, future investments or even as a precaution against market uncertainty.
If a company holds more cash or highly liquid assets as a large proportion of their total assets and relative to their peers, investors can draw insight into the size and scope of a company’s future investments. Keep in mind that some industries by their nature will have much more hard assets than others, such as utilities, for example.
To get an idea of the companies that are holding the most cash, CNBC.com did an analysis of cash and short term, highly-liquid investments held by S&P 500 companies as a ratio of total assets, using data from Capital IQ. Financial companies are excluded from this list since they inherently hold large amounts of cash.
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? Click ahead to find out!
By Giovanny Moreano & Paul Toscano
Posted 1 July 2010
15. Cisco Systems (CSCO)
Liquid assets (as % of total assets): 49.3%
Liquid assets (as % of total revenue): 103.6%
Total cash & short term investments: $39.11 billion
Sector averages: Information Technology
Liquid assets (as % of total assets): 31.74%
Total liquid assets: $4.33 billion
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14. Celgene Corp (CELG)
Liquid assets (as % of total assets): 49.4%
Liquid assets (as % of total revenue): 102.7%
Total cash & short term investments: $2.95 billion
Sector averages: Health Care
Liquid assets (as % of total assets): 17.52%
Total liquid assets: $3.25 billion
Note: Celgene recently announced a deal to buy Abraxis for $2.9 billion in cash and stock. Cash holdings presented here are reported prior to the announcement of this deal.
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13. QLogic Corp (QLGC)
Liquid assets (as % of total assets): 50%
Liquid assets (as % of total revenue): 68.4%
Total cash & short term investments: $375.7 million
Sector averages: Information Technology
Liquid assets (as % of total assets): 31.74%
Total liquid assets: $4.33 billion
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12. Forest Laboratories (FRX)
Liquid assets (as % of total assets): 53.4%
Liquid assets (as % of total revenue): 79.9%
Total cash & short term investments: $3.32 billion
Sector averages: Health Care
Liquid assets (as % of total assets): 17.52%
Total liquid assets: $3.25 billion
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11. Novell Inc. (NOVL)
Liquid assets (as % of total assets): 54%
Liquid assets (as % of total revenue): 116.9%
Total cash & short term investments: $979.6 million
Sector averages: Information Technology
Liquid assets (as % of total assets): 31.74%
Total liquid assets: $4.33 billion
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10. Tellabs Inc. (TLAB)
Liquid assets (as % of total assets): 54.2%
Liquid assets (as % of total revenue): 91.95%
Total cash & short term investments: $1.42 billion
Sector averages: Information Technology
Liquid assets (as % of total assets): 31.74%
Total liquid assets: $4.33 billion
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9. Priceline.com (PLCN)
Liquid assets (as % of total assets): 56.1%
Liquid assets (as % of total revenue): 50.22%
Total cash & short term investments: $1.24 billion
Sector averages: Consumer Discretionary
Liquid assets (as % of total assets): 14.44%
Total liquid assets: $1.74 billion
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8. Humana (HUM)
Liquid assets (as % of total assets): 56.4%
Liquid assets (as % of total revenue): 27.1%
Total cash & short term investments: $8.58 billion
Sector averages: Health Care
Liquid assets (as % of total assets): 17.52%
Total liquid assets: $3.25 billion
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7. Lorillard Inc. (LO)
Liquid assets (as % of total assets): 57.2%
Liquid assets (as % of total revenue): 43.2%
Total cash & short term investments: $1.66 billion
Sector averages: Consumer Staples
Liquid assets (as % of total assets): 8.77%
Total liquid assets: $1.596 billion
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6. NetApp Inc. (NTAP)
Liquid assets (as % of total assets): 57.3%
Liquid assets (as % of total revenue): 94.7%
Total cash & short term investments: $3.72 billion
Sector averages: Information Technology
Liquid assets (as % of total assets): 31.74%
Total liquid assets: $4.33 billion
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5. Analog Devices (ADI)
Liquid assets (as % of total assets): 60.8%
Liquid assets (as % of total revenue): 102.2%
Total cash & short term investments: $2.39 billion
Sector averages: Information Technology
Liquid assets (as % of total assets): 31.74%
Total liquid assets: $4.33 billion
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4. Google Inc. (GOOG)
Liquid assets (as % of total assets): 61.8%
Liquid assets (as % of total revenue): 106.4%
Total cash & short term investments: $26.51 billion
Sector averages: Information Technology
Liquid assets (as % of total assets): 31.74%
Total liquid assets: $4.33 billion
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3. VeriSign Inc. (VRSN)
Liquid assets (as % of total assets): 62.2%
Liquid assets (as % of total revenue): 148.9%
Total cash & short term investments: $1.55 billion
Sector averages: Information Technology
Liquid assets (as % of total assets): 31.74%
Total liquid assets: $4.33 billion
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2. Linear Technology Corp. (LLTC)
Liquid assets (as % of total assets): 63.3%
Liquid assets (as % of total revenue): 101%
Total cash & short term investments: $1.02 billion
Sector averages: Information Technology
Liquid assets (as % of total assets): 31.74%
Total liquid assets: $4.33 billion
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1. Altera Corp. (ALTR)
Liquid assets (as % of total assets): 65.9%
Liquid assets (as % of total revenue): 130.4%
Total cash & short term investments: $1.74 billion
Sector averages: Information Technology
Liquid assets (as % of total assets): 31.74%
Total liquid assets: $4.33 billion
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