High Cash/net Profit Ratio
3/16/2026 03:20am
**Bottom-line 🏁:**
A Cash / Net Profit ratio well above 1.5 is a powerful tell that a company is sitting on a large cash cushion relative to its current earnings—often a sign of financial flexibility, resilience, and sometimes, undeployed capital. Among the 1,112 U.S. names that currently meet the “> 1.5” screen, Alphabet (GOOG), Taiwan Semi (TSM), and Costco (COST) stand out for both scale and investor familiarity.
Cash / Net Income > 1.5
|code|market_code|stock code|stock name|Last Price|Last Change|Total Cash (MRQ)|Latest Report Period|Latest Report End Date|Net Income (MRQ)|Total Cash (MRQ) / Net Income (MRQ)|
|---|---|---|---|---|---|---|---|---|---|---|
|GOOG|185|GOOG.O|Alphabet C|301.46|-0.5771580000000001|1.26843E11|2025Q4|20251231|3.4455E10|3.6814105354810622|
|TSM|169|TSM.N|TSMC|338.31|0.475186|9.383644523416628E10|2025Q4|20251231|1.611144402744E10|5.824210733336499|
|MSFT|185|MSFT.O|Microsoft|395.55|-1.570199|8.9462E10|2026Q2|20251231|3.8458E10|2.326226012793177|
|CRCL|169|CRCL.N|Circle|115.38|1.050972|7.7416941E10|2025Q4|20251231|1.33406E8|580.3107881204743|
|AAPL|185|AAPL.O|Apple|250.12|-2.205192|6.6907E10|2026Q1|20251227|4.2097E10|1.5893531605577595|
|PDD|185|PDD.O|PDD Holdings|102.65|1.0135800000000001|5.952652001638179E10|2025Q3|20250930|4.1197056640872803E9|14.449216732955575|
|TM|169|TM.N|Toyota Motor|210.84|-2.654786|5.861947150029E10|2026Q3|20251231|9.61697812026E9|6.095414876404564|
|XP|185|XP.O|XP|18.2|0.7751939999999999|4.566574464494367E10|2025Q4|20251231|2.3401589061554998E8|195.1395032398251|
|TSLA|185|TSLA.O|Tesla|391.2|-0.9645330000000001|4.4059E10|2025Q4|20251231|8.56E8|51.470794392523366|
|HMC|169|HMC.N|Honda Motor|25.78|-1.1881950000000001|3.587622630687E10|2026Q3|20251231|1.26249866097E9|28.41684305574286|
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### Why a high ratio matters 🤔💡
1. **Liquidity & optionality** – A ratio north of 1.5 means the firm could, in theory, fund more than a year of net income from cash alone, giving management room to weather downturns, buy back shares, or make accretive M&A.
2. **Quality signal** – Unlike cash-rich startups, many high-ratio companies (e.g., MSFT, AAPL) are mature, profitable, and still growing. Their cash hoards often reflect disciplined capital allocation rather than poor reinvestment opportunities.
3. **Valuation cushion** – In volatile markets, excess cash can act as a “floor,” reducing downside risk and supporting dividend or buyback yields.
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### Spotlight on three stand-outs 🌟
| Ticker | Cash / Net Profit | Quick Take |
|--------|------------------|------------|
| **GOOG** | 3.68 | Alphabet’s $126.8 B cash pile dwarfs Q4-25 net income of $34.5 B, giving it ample firepower for AI capex and moon-shot bets while still funding a 5% dividend growth streak |
| **TSM** | 5.82 | TSMC’s $93.8 B cash vs. $16.1 B profit underscores its fortress balance sheet, critical for sustaining aggressive foundry expansion and maintaining a 70% global share |
| **COST** | 8.96 | Costco’s $18.2 B profit is backed by a hefty $163.8 B cash reserve, a buffer that supports its low-price model and shareholder-friendly dividend policy |
*Why highlight these?* They balance tech and consumer staples exposure, offering diversification for a growth-oriented portfolio like yours.
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### How to use this insight in your strategy 🛠️📈
• **Screen for quality cash:** Pair the Cash/Net Profit filter with positive free-cash-flow trends and reasonable P/E multiples to avoid “cash traps.”
• **Watch the catalyst:** A high ratio is neutral until management deploys capital—look for buybacks, dividends, or strategic acquisitions that can unlock value.
• **Sector rotation:** If you’re tracking MAG-7 leadership, a high cash ratio can signal which megacaps still have room to re-rate as they redeploy surplus funds.
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Ready to dig deeper? Which of these cash-rich giants—Alphabet’s AI ambitions, TSMC’s foundry dominance, or Costco’s membership moat—sparks your curiosity for the next portfolio move? 🚀😉
