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Debt-Free and Rich in Cash, These Stocks Look Enticing

By Daniel Sparks - Apr 23, 2013 at 10:15AM

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Apple and Google stand out gallantly among blue chip stocks.

When analyzing companies' balance sheets, many investors compare assets to liabilities with ratios like the debt-to-equity ratio. In the video below, Fool contributor Daniel Sparks suggests to instead focus on a company's ability to service its debt. Specifically, he suggests using the debt burden ratio. Comparing Apple (AAPL 2.94%) and Google (GOOGL 2.44%) on this metric to other blue chip stocks, these tech behemoths look extremely compelling.

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Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
$141.64 (2.94%) $4.05
Alphabet Inc. Stock Quote
Alphabet Inc.
$2,231.33 (2.44%) $53.17
The Walt Disney Company Stock Quote
The Walt Disney Company
$103.78 (1.33%) $1.36
Microsoft Corporation Stock Quote
Microsoft Corporation
$259.66 (2.81%) $7.10
Starbucks Corporation Stock Quote
Starbucks Corporation
$74.00 (0.83%) $0.61
Waste Management, Inc. Stock Quote
Waste Management, Inc.
$155.05 (0.36%) $0.55

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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