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24 Cash Rich and Virtually Debt Free Companies from Top 8 Sectors

Companies, especially larger ones, always have a Chief Financial Officer (CFO), Comptroller, or Treasurer, whose primary responsibility is to maximize the financial assets of the company, including cash. Anyone who has ever taken a class in finance will know that idle cash does not serve any benefit whatsoever, and in inflationary times, idle cash will lose value.

Conventional wisdom dictates that companies, even individuals for that matter, should only keep enough cash on hand to support continuing operations. Therefore, companies that are cash rich can only do so for a very specific purpose. Some are possibly trying to accumulate cash reserves for acquisition or expansion purposes, but judging from the list below, one can only conclude that the reason previously mentioned can only explain the case for some of the companies.

Sectors List of Cash Rich and Companies

1) Average For Consumer Staples Sector

Liquid assets of $69.69 Million, 6.87% of total assets.

  • Lorillard: Liquid assets are $1.63 Billion, 64.3% of total assets and 36.7% of annual revenues.
  • Sara Lee: Liquid assets 30.5% of total assets.
  • Mead Johnson Nutrition: Liquid assets 22.9% of total assets.

2) Average For Telecom Services Sector

Liquid assets of $40.15, 8.57% of total assets.

  • MetroPCS communications: Liquid assets stand at $2.24 Billion, 23.7% of total assets and 46.3% of annual revenues
  • Sprint Nextel: Liquid assets 11.3% of total assets
  • Verizon Communications: Liquid assets 6.1% of total assets.

3) Average For Utilities Sector

Liquid assets of $20.6 Million, 2.05% of total assets.

  • AES Corp.: Liquid assets at $4.35 Billion, 10.9% of total assets and 24.7% of annual revenues.
  • Constellation Energy: Liquid assets 5% of total assets.
  • NRG Energy: Liquid assets 4.6% of total assets.

4) Average For Financial Services Sector

Liquid assets of $4.53 Billion, 31.47% of total assets

  • Franklin Resources: Liquid assets of $6.75 Billion, 50.4% of total assets and 94.5% of annual revenues.
  • BNY Mellon: Liquid assets 31.47% of total assets.
  • Citigroup: Liquid assets 42.1% of total assets.

5) Average For Industrials Sector

Liquid assets of $220.1 Million, 12.55% of total assets.

  • Expeditors International Washington: Liquid assets of $1.29 Billion, 45.2% of total assets and 21.1% of annual revenues.
  • Fluor: Liquid assets 27.3% of total assets.
  • Masco Corp.: Liquid assets 22.7% of total assets.

6) Average For Technology Sector

Liquid assets of $388 Million, 26.72% of total assets.

  • Altera Corp.: Liquid assets of $3.44 Billion, 80.3% of total assets and 166.5% of annual revenues.
  • Verisign: Liquid assets 72.5% of total assets.
  • Analog Devices: Liquid assets 69.5% of total assets.

7) Average For Discretionary Consumer Sector

Liquid assets of $25.28 Million, 19.99% of total assets.

  • Priceline: Liquid assets of $2.4 Billion, 63.0% of total assets and 58.7% of annual revenues.
  • Apollo Group: Liquid assets 40.7% of total assets.
  • Liquid assets 37.9% of total assets.

8) Average For Materials Sector

Liquid assets of $40.15 Million, 8.57% of total assets.

  • The Mosaic Company: Liquid assets of $3.6 Billion, 23.0% of total assets and 32.5% of annual revenues.
  • Sigma Aldrich: Liquid assets 21.0% of total assets
  • Nucor Corp.: Liquid assets 17.6% of total assets.

Why are cash rich companies suddenly becoming all the rage, especially financial services companies that make their profits from lending out cash? Is it a sign that they are good companies to invest in, or are these companies making the argument for deflation, where cash is king?

Your call.

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