Recent U.S. economic data increases the possibility of an interest rate hike this year
SmallCapPower | July 26, 2016: Following a disappointing May jobs report, U.S. employment bounced back big time in June, with the creation of 287,000 new jobs. Should this trend continue the U.S. Federal Reserve might be inclined to raise rates in 2016, causing the cost of borrowing to rise. Fortunately for the companies on our list with lower debt-to-equity ratios, the impact of such an action would be less cause for concern.
Alphabet Inc. (NASDAQ:GOOGL) – $753.41
Online Services
Alphabet Inc. is a holding company. Its segments include Google and Other Bets. Google segment includes Internet products, such as Search, Ads, Commerce, Maps, YouTube, Apps, Cloud, Android, Chrome, Google Play, and hardware products, including Chromecast, Chromebooks and Nexus, which are sold by the Company. Its technical infrastructure and Virtual Reality are also included in Google segment. Google segment is engaged in advertising, sales of digital content, applications and cloud services, as well as sale of Google branded hardware.
- Market Cap: 511,607,995,441
- Revenues: 77,988,000,000
- Total Debt: 20,255,000,000
- Debt to Equity: 4%
Exxon Mobil Corp. (NYSE:XOM) – $94.47
Oil & Gas Refining and Marketing
Exxon Mobil Corporation is an energy company engaged in the exploration and production of crude oil and natural gas, manufacturing of petroleum products, and transportation and sale of crude oil, natural gas and petroleum products. The Company also manufactures and markets petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and various specialty products. The Company operates through the Upstream, Downstream, Chemical, and Corporate and Financing segments.
- Market Cap: 391,730,374,423
- Revenues: 241,835,000,000
- Total Debt: 9,225,000,000
- Debt to Equity: 25%
Facebook Inc. (NASDAQ:FB) – $120.61
Online Services
Facebook, Inc. builds products that enable people to connect and share through mobile devices and personal computers. The Company enables people to share their opinions, ideas, photos and videos, and other activities. Its products include Facebook, Instagram, Messenger, WhatsApp and Oculus.
- Market Cap: 215,285,203.21
- Revenues: 19,766,000,000
- Total Debt: 7,301,000,000
- Debt to Equity: 0%
Alibaba Group Holding Ltd. (NYSE:BABA) – $83.19
Online Services
Alibaba Group Holding Limited is a holding company that is engaged in online and mobile commerce through offering of products, services and technology that enable merchants, brands and other businesses to transform the way they market, sell and operate in the People’s Republic of China (the PRC or China) and internationally. It operates through the provision of online and mobile commerce and related services segment. The Company provides retail and wholesale marketplaces available through both personal computer and mobile interfaces in the PRC and internationally.
- Market Cap: 114,570,744.63
- Revenues: 15,825,137,069
- Total Debt: 4,406,785,088
- Debt to Equity: 27%
Chevron Corp. (NYSE:CVX) – $103.07
Oil & Gas Refining and Marketing
Chevron Corporation (Chevron) manages its investments in subsidiaries and affiliates and provides administrative, financial, management and technology support to the United States and international subsidiaries that engage in integrated energy and chemicals operations. The Company operates through two business segments: Upstream and Downstream.
- Market Cap: 199,853,841,117
- Revenues: 120,308,000,000
- Total Debt: -3,996,000,000
- Debt to Equity: 28%
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