Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

Companies have many options when it comes to excess cash holdings. They can re-invest in the company with new projects or acquisitions, or they can return the money to shareholders in the form of dividends or share buybacks.

If you like following companies with healthy levels of cash, you may be interested in this list.

We ran a screen on the 200 largest companies for those with the highest amounts of cash relative to their average quarterly operating expense over the last five quarters.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these companies should be spending more cash? Use this list as a starting point for your own analysis.

List sorted by cash/average quarterly operating expense.

1. Amgen Inc. (NASDAQ:AMGN): Develops, manufactures, and markets human therapeutics based on advances in cellular and molecular biology for grievous illnesses primarily in the United States, Europe, and Canada. Market cap of $60.98B. Average quarterly operating expense over the last five quarters at $2,713.8M, vs. most recent cash and short term investments at $17,676M, implies a Cash / Avg. Operating Expense ratio at 6.51. The stock has had a good month, gaining 15.62%.

2. The Goldman Sachs Group, Inc. (NYSE:GS): Provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Market cap of $53.53B. Average quarterly operating expense over the last five quarters at $7,504.6M, vs. most recent cash and short term investments at $44,200M, implies a Cash / Avg. Operating Expense ratio at 5.89. The stock has had a couple of great days, gaining 7.44% over the last week.

3. Mastercard Incorporated (NYSE:MA): Provides transaction processing and related services to customers principally in support of their credit, deposit access, electronic cash and automated teller machine payment card programs, and travelers' cheque programs. Market cap of $43.24B. Average quarterly operating expense over the last five quarters at $758.8M, vs. most recent cash and short term investments at $4,392M, implies a Cash / Avg. Operating Expense ratio at 5.79. The stock has gained 45.18% over the last year.

4. VMware, Inc. (NYSE:VMW): Provides virtualization and virtualization-based cloud infrastructure solutions primarily in the United States. Market cap of $37.20B. Average quarterly operating expense over the last five quarters at $702.19M, vs. most recent cash and short term investments at $3,976.7M, implies a Cash / Avg. Operating Expense ratio at 5.66. The stock has lost 1.33% over the last year.

5. Oracle Corporation (NYSE:ORCL): Develops, manufactures, markets, distributes, and services database and middleware software, applications software, and hardware systems worldwide. Market cap of $144.29B. Average quarterly operating expense over the last five quarters at $5,875.4M, vs. most recent cash and short term investments at $31,012M, implies a Cash / Avg. Operating Expense ratio at 5.28. The stock has had a couple of great days, gaining 5.67% over the last week.

6. Cisco Systems, Inc. (NASDAQ:CSCO): Designs, manufactures, and sells Internet protocol-based networking and other products related to the communications and information technology industry worldwide. Market cap of $107.09B. Average quarterly operating expense over the last five quarters at $8,918M, vs. most recent cash and short term investments at $44,388M, implies a Cash / Avg. Operating Expense ratio at 4.98. The stock has had a good month, gaining 12.99%.

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 6 Mega-Cap Stocks With Loads Of Cash Relative To Expenses