When it comes to companies that make a lot of money in tech circles, most people think of Amazon and Apple, the two companies that have surpassed the $ 1,000 billion market value mark. But in fact, these turn out not to be the companies with the largest bank accounts in cash?
The most commonly used metric for evaluating the “financial health” of publicly traded companies on the stock market is the debt-to-equity ratio. The higher this ratio is often related to the risk of equity investments, because that means the company has promoted its growth by debt. However, this ratio varies from industry to industry, because each industry has different capital needs and growth rates.
So the next number we may be interested in is the cash of the companies. It shows the scale in investing in R&D, marketing, sales, or mergers and acquisitions. And here are the 5 tech companies that are hoarding the most cash, based on the latest quarterly earnings report.
Alphabet (Google’s parent company) – $ 100 billion
The parent company of Google has a total cash reserve of 117 billion USD and a total debt of 17 billion USD. The result is a positive balance sheet of $ 100 billion. This is the highest positive balance sheet, compared to any publicly traded company in the US. And most of Alphabet’s revenue comes from Google, more specifically from Google’s advertising business, which accounts for 85% of total revenue.
Microsoft – 53 billion USD
Microsoft currently has a total reserve of 137 billion USD and a total debt of 84 billion USD. The result is a positive balance of 53 billion USD. Microsoft’s revenue mainly comes from cloud computing business, besides software and personal computers, which includes Windows operating system.
Facebook – $ 49 billion
Social media group Facebook has a total cash reserve of 60 billion USD and a total debt of 11 billion USD. Advertising accounted for 98% of Facebook’s total revenue, according to 2019 figures.
Cisco – $ 11 billion
The Cisco network equipment supplier has a total cash reserve of 28 billion USD and a total debt of 17 billion USD. The company dominates the market for Internet-enabled products such as switches, routers, network security, wireless systems, network management …
NVIDIA – $ 9 billion
The manufacturer of NVIDIA graphics card has a total cash reserve of 16 billion USD and a total debt of 7 billion USD. This multinational corporation specializes in the development of graphics processors (GPUs) and chipset technology for workstations, personal computers and mobile devices.