3 Stocks With Ironclad Balance Sheets for Long-Term Stability

Core Insights - The balance sheet is crucial for assessing a company's financial health, focusing on the balance between assets and liabilities, which impacts liquidity and solvency [1][2] Group 1: NVIDIA - NVIDIA has a net debt of -$33 billion, indicating it can pay off all its debt and still retain$33 billion in cash and short-term investments [4] - The company's cash and short-term investments increased by approximately $17 billion in 2024, while its debt decreased by nearly$800 million, enhancing its capacity for strategic investments [5][6] - NVIDIA's current ratio stands at 4.4x, demonstrating excellent liquidity as its current assets are significantly greater than its current liabilities [6][7] Group 2: Arista Networks - Arista Networks has seen its cash and short-term investments rise from $3 billion at the end of 2022 to$8.3 billion at the end of 2024, reflecting strong demand for its products [9] - The company's debt is minimal at $60 million compared to its$99 billion market capitalization, and it also has a current ratio of 4.4x, indicating strong liquidity and solvency [10] - Arista's Return on Assets (ROA) is over 15%, one of the highest in the U.S. tech sector, showcasing its effective use of assets to generate profits [10][11] Group 3: Regeneron Pharmaceuticals - Regeneron Pharmaceuticals has around $3 billion in debt, which is low for a Big Pharma company, and it ranks second lowest in debt among the top 11 U.S. pharmaceutical firms [12][14] - The company boasts a net debt position of -$15 billion, indicating strong solvency and the ability to pursue acquisitions [14] - Regeneron has the best current ratio in its group at 4.7x, significantly higher than the next closest competitor, Vertex Pharmaceuticals, which has a current ratio of 2.7x, highlighting its strong liquidity position [14][15]