The companies that report no long-term debt
A screen for companies with no long-term debt returns some of the most heavily indebted companies in America. The reason is worth understanding.
Findings
Companies that owe more than they own, and are fine
Negative shareholder equity sounds like insolvency. For most of the companies reporting it, it is the arithmetic of a long buyback programme.
Profitable on the income statement, burning cash in reality
Net income and free cash flow disagree more often than they are supposed to. These are the companies where the gap runs the uncomfortable way.
Above 80% gross margin, and why health insurers are on the list
The very highest gross margins belong to software, pharmaceuticals — and a set of companies that report no cost of revenue at all.
Shrinking the share count while losing money
Buying back stock out of profit is capital return. Buying it back during losses is a different decision, and more companies make it than you would think.