business newsInteresting! Top 10 Interest Earners
By
Bristol Voss Aug 09, 2012 11:10 am
Google and Microsoft earn millions in interest at no expense while Coca-Cola doesn't get to keep a cent as its interest expenses match its income.
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MINYANVILLE ORIGINAL Sitting back and raking in interest income may sound good on paper, but as recent analysis by Minyanville shows, high interest income is relative.
Interestingly, interest income does not correlate to cash on hand. Only two companies on the list of the top 10 highest interest earners, Google (GOOG) and Microsoft (MSFT), are also on our list of cash-rich stocks. In keeping with their fiscal husbandry, both Google and Microsoft earned interest at no expense. Qualcomm (QCOM) also netted 100% of its interest income.
That was not the case with Coca-Cola (KO), which netted zero in interest income after expenses. Worse, Amgen (AMGN) came out at -$132 million after expenses.
Alas, passive investments and actual earnings can be the twain that do not meet for some companies. The number one interest income earner, real estate trust American Capital Agency (AGNC) netted $263 million after expenses, but the stock has been tumbling lately on heavy volume after it reported a net loss in earnings for the second quarter.
Top 10 Interest Earners Ranked by Total Take (Interest Income Minus Interest Expense)
American Capital Agency
Price: $33.56
Market Cap: $10.07 billion
Interest Income: $263 million
Interest Expense: 0
Total Take: $263 million
Google
Price: $643.36
Market Cap: $209.37 billion
Interest Income: $254 million
Interest Expense: 0
Total Take: $254 million
Qualcomm
Price: $61.45
Market Cap: $105.34 billion
Interest Income: $199 million
Interest Expense: 0
Total Take: $199 million
General Motors (GM)
Price: $20.38
Market Cap: $31.91 billion
Interest Income: $275 million
Interest Expense: $118 million
Total Take: $157 million
Microsoft
Price: $30.33
Market Cap: $254.80 billion
Interest Income: $167 million
Interest Expense: 0
Total Take: $167 million
Toyota Motor (TM)
Price: $80.94
Market Cap: $128.16 billion
Interest Income: $202 million
Interest Expense: $89 million
Total Take: $113 million
KKR (KKR)
Price: $14.02
Market Cap: $3.246 billion
Interest Income: $87.89 million
Interest Expense: $16.88 million
Total Take: $71.01 million
Cisco Systems (CSC)
Price: $17.69
Market Cap: $92.42 billion
Interest Income: $161 million
Interest Expense: $151 million
Total Take: $10 million
Coca-Cola
Price: $79.63
Market Cap: $179.48 billion
Interest Income: $112 million
Interest Expense: $112 million
Total Take: 0
Amgen
Price: $81.37
Market Cap: $63.28 billion
Interest Income: $124 million
Interest Expense: $256 million
Total Loss: -$132 million
Interestingly, interest income does not correlate to cash on hand. Only two companies on the list of the top 10 highest interest earners, Google (GOOG) and Microsoft (MSFT), are also on our list of cash-rich stocks. In keeping with their fiscal husbandry, both Google and Microsoft earned interest at no expense. Qualcomm (QCOM) also netted 100% of its interest income.
That was not the case with Coca-Cola (KO), which netted zero in interest income after expenses. Worse, Amgen (AMGN) came out at -$132 million after expenses.
Alas, passive investments and actual earnings can be the twain that do not meet for some companies. The number one interest income earner, real estate trust American Capital Agency (AGNC) netted $263 million after expenses, but the stock has been tumbling lately on heavy volume after it reported a net loss in earnings for the second quarter.
Top 10 Interest Earners Ranked by Total Take (Interest Income Minus Interest Expense)
American Capital Agency
Price: $33.56
Market Cap: $10.07 billion
Interest Income: $263 million
Interest Expense: 0
Total Take: $263 million
Price: $643.36
Market Cap: $209.37 billion
Interest Income: $254 million
Interest Expense: 0
Total Take: $254 million
Qualcomm
Price: $61.45
Market Cap: $105.34 billion
Interest Income: $199 million
Interest Expense: 0
Total Take: $199 million
General Motors (GM)
Price: $20.38
Market Cap: $31.91 billion
Interest Income: $275 million
Interest Expense: $118 million
Total Take: $157 million
Microsoft
Price: $30.33
Market Cap: $254.80 billion
Interest Income: $167 million
Interest Expense: 0
Total Take: $167 million
Toyota Motor (TM)
Price: $80.94
Market Cap: $128.16 billion
Interest Income: $202 million
Interest Expense: $89 million
Total Take: $113 million
KKR (KKR)
Price: $14.02
Market Cap: $3.246 billion
Interest Income: $87.89 million
Interest Expense: $16.88 million
Total Take: $71.01 million
Cisco Systems (CSC)
Price: $17.69
Market Cap: $92.42 billion
Interest Income: $161 million
Interest Expense: $151 million
Total Take: $10 million
Coca-Cola
Price: $79.63
Market Cap: $179.48 billion
Interest Income: $112 million
Interest Expense: $112 million
Total Take: 0
Amgen
Price: $81.37
Market Cap: $63.28 billion
Interest Income: $124 million
Interest Expense: $256 million
Total Loss: -$132 million
No positions in stocks mentioned.
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