Debt-Free, Cash-Rich Companies
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 short-term, highly liquid assets in order to make acquisitions and fund other investments in future growth.
According to the latest quarterly filings, only 22 companies in the S&P 500 reported having zero debt on their balance sheets. Of these companies, CNBC’s Analyst Giovanny Moreano selected the ones with the largest amount of cash and short-term investments as a percent of total assets. The average return for the top 15 firms in the past year stands at 15 percent, compared with a gain of 2 percent for the S&P 500.
So, which S&P 500 companies are debt free and cash rich? Click ahead to find out.
By Giovanny Moreano&Paul Toscano
Posted 25 Jan 2012
Note: 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. Cash holdings do not include long-term investments.
15. Fastenal (FAST)
Total debt: $0
Cash & ST investments: $145 million
Total assets: $1.68 billion
Cash as % of assets: 8.6%
1-year stock performance: 56.2%
See FAST Real-Time Quote and Full Financial Data
14. C.H. Robinson Worldwide (CHRW)
Total debt: $0
Cash & ST investments: $383 million
Total assets: $2.17 billion
Cash as % of assets: 17.6%
1-year stock performance: -13%
See CHRW Real-Time Quote and Full Financial Data
13. F5 Networks (FFIV)
Total debt: $0
Cash & ST investments: $557 million
Total assets: $1.69 billion
Cash as % of assets: 32.8%
1-year stock performance: 15.5%
See FFIV Real-Time Quote and Full Financial Data
12. Citrix (CTXS)
Total debt: $0
Cash & ST investments: $775 million
Total assets: $3.88 billion
Cash as % of assets: 20%
1-year stock performance: 4.9%
See CTXS Real-Time Quote and Full Financial Data
11. Red Hat (RHT)
Total debt: $0
Cash & ST investments: $808 million
Total assets: $2.38 billion
Cash as % of assets: 34%
1-year stock performance: +12.9%
See RHT Real-Time Quote and Full Financial Data
10. LSI Corp (LSI)
Total debt: $0
Cash & ST investments: $879 million
Total assets: $2.27 billion
Cash as % of assets: 38.7%
1-year stock price performance: 22.3%
See LSI Real-Time Quote and Full Financial Data
9. T Rowe Price Group (TROW)
Total debt: $0
Cash & ST investments: $1.01 billion
Total assets: $3.84 billion
Cash as % of assets: 26.2%
1-year stock performance: -9.0%
See TROW Real-Time Quote and Full Financial Data
8. Autodesk (ADSK)
Total debt: $0
Cash & ST investments: $1.34 billion
Total assets: $3.01 billion
Cash as % of assets: 44.7%
1-year stock performance: -12.8%
See ADSK Real-Time Quote and Full Financial Data
7. Bed Bath and Beyond (BBBY)
Total debt: $0
Cash & ST investments: $1.52 billion
Total assets: $5.85 billion
Cash as % of assets: 26.1%
1-year stock performance: +28.8%
See BBBY Real-Time Quote and Full Financial Data
6. Intuitive Surgical (ISRG)
Total debt: $0
Cash & ST investments: $2.17 billion
Total assets: $3.06 billion
Cash as % of assets: 70.9%
1-year stock performance: +34.2%
See ISRG Real-Time Quote and Full Financial Data
5. Forest Labs (FRX)
Total debt: $0
Cash & ST investments: $2.205 billion
Total assets: $6.92 billion
Cash as % of assets: 31.8%
1-year stock performance: UNCH
See FRX Real-Time Quote and Full Financial Data
4. Cognizant Tech (CTSH)
Total debt: $0
Cash & ST investments: $2.29 billion
Total assets: $5.1 billion
Cash as % of assets: 44.9%
1-year stock performance: -4.2%
See CTSH Real-Time Quote and Full Financial Data
3. Mastercard (MA)
Total debt: $0
Cash & ST investments: $4.39 billion
Total assets: $9.67 billion
Cash as % of assets: 45.4%
1-year stock performance: +43.4%
See MA Real-Time Quote and Full Financial Data
2. Amazon.com (AMZN)
Total debt: $0
Cash & ST investments: $6.32 billion
Total assets: $19.05 billion
Cash as % of assets: 33.2%
1-year stock performance: +5.7%
See AMZN Real-Time Quote and Full Financial Data
1. Apple (AAPL)
Total debt: $0
Cash & ST investments: $30.2 billion*
Total assets: $116.37 billion
Cash as % of assets: 22.3%
1-year stock performance: 24.6%
*Note: Apple has an additional $67.5 billion in long-term investments.
See AAPL Real-Time Quote and Full Financial Data