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Low-debt stocks: companies with more cash than debt

Companies with little or no debt can get through bad years and invest without borrowing. Net debt - debt minus cash - below zero means a company could repay all its debt today.

By the Ticker Picker team

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How to measure debt

Net debt is the total borrowing minus the cash and short-term investments. Compared with profits (net debt to EBITDA) it shows how many years of earnings the debt equals; below about 2 is usually comfortable, below zero means more cash than debt.

Is no debt always better?

Not always. Some debt at a low interest rate can raise the return for shareholders, and very cautious companies may grow slowly. Banks and insurers carry debt as part of their business, so compare them only with each other.

Using the screener

The profile below shows profitable companies worth at least 2 billion with net debt below zero, largest first. Open a company and look at its debt over several years - is it falling or rising?

Try it in the screener

The Little or no debt profile shows companies with more cash than debt. It is a learning example, not a recommendation.

Show little or no debt stocks

This content is general information, not investment advice.