Apple Inc.

Apple’s financial position is exceptionally strong. The company generates over $100 billion in operating cash flow annually, providing enormous flexibility and a cushion against downturns. Apple carries debt on its balance sheet (about $119 billion as of the end of FY2024) but also holds tens of billions in cash and short-term investments.

On a net basis, debt is very modest relative to Apple’s earnings power (net debt roughly only half of one year’s cash flow) and could be paid down quickly if needed.

Credit agencies recognize Apple’s fortress-like finances: Moody’s upgraded Apple to an Aaa credit rating, citing “exceptional liquidity, robust earnings... and a very strong business profile,” with Apple’s ecosystem providing revenue stability. The company’s interest coverage is enormous, and it has access to capital at favorable rates if required.

In practice, Apple’s cash generation easily funds all operations, R&D, dividends, and sizable buybacks without straining resources.

The current ratio is below 1.0 given Apple’s efficient working capital management and return of cash to shareholders, but this is not concerning given its ability to generate cash on demand and the depth of its liquidity.

Simply put, Apple can weather virtually any economic storm or black swan event; bankruptcy or financial distress risk is effectively zero under normal conditions.