In volatile markets, one golden rule stands tall: cash-rich, debt-light companies weather storms better. Such businesses not only survive downturns but often emerge stronger, thanks to solid balance sheets and financial flexibility. But how do you find these gems among thousands of stocks?
This is where InvestingPro’s powerful stock screener steps in—saving you hours of tedious research by helping you filter only the most financially sound companies in just a few clicks.
One of its most valuable pre-built screeners is aptly named “Cash is King.” As the name suggests, it identifies companies with ample cash reserves and minimal debt—hallmarks of stability and strength. But it goes deeper than that.
Not All Cash-Rich Companies Are Worth Your Money
While having cash on the books is great, not every cash-rich company is investment-worthy. Some may be underperformers or have inefficient capital allocation. That’s why being selective is critical, and the “Cash is King” screener enforces stringent quality filters to ensure you’re only shown companies with the right financial hygiene.
What Does This Screener Look For?
A key metric used is the current ratio, which simply tells you how well a company can meet its short-term obligations with its short-term assets. A ratio above 1 is generally safe—but this screener looks for much higher, ensuring rock-solid liquidity.
Another smart filter is Return on Assets (RoA)—a measure of how effectively a company uses its assets to generate profit. High RoA companies are often more efficient and better run.
Spotlight Stock: Systango Technologies
One of the current stars in this screener is Systango Technologies. Here’s why it’s a no-brainer:
Current Ratio: 7.8 – Exceptional liquidity
Leveraged Free Cash Flow Margin: 74.6% – Strong cash-generating ability
Total Debt to Capital: 0 – Zero debt
Fair Value (via InvestingPro): INR 238.6 vs Current Market Price – Offers 10% upside potential
This combination of financial strength and growth potential makes it a compelling candidate for your watchlist.
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Now’s the perfect time to subscribe—with discounts of up to 45% for a limited time. Don’t miss out—make smarter investing easier today with InvestingPro.
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