As the U.S. economy continues to expand in the wake of the Great Recession, many companies are taking advantage of low interest rates and cheap credit and are increasing their borrowing levels. Corporate debt levels for non-financial U.S. companies reached, according to S&P Global, $7.1 trillion in 2019 — more than a third of GDP — the largest corporate debt load in history.
Much of the corporate debt is concentrated in just a few large companies. The top 10 non-financial U.S. companies with the greatest debt loads account for 13% of the national corporate debt, and the top 40 companies account for 26% of all long-term corporate debt in the country.Â
To determine the companies with the biggest corporate debt, 24/7 Wall St. analyzed the long-term debt of non-financial companies in the Fortune 500 with data from SEC filings for the latest fiscal year. Long-term debt refers to outstanding debt a company holds that is due in a period of 12 months or longer and includes obligations such as bonds and individual notes payable.Â
Of the 40 companies with the biggest corporate debt loads, seven are in the technology sector, four in utilities, four in energy, and four in telecommunications. Many of the tech companies on this list are also among the world’s 50 most innovative companies, and many of the industries represented by the most debt-laden companies also operate within America’s 25 thriving industries.
Click here to see the companies with the biggest corporate debts
Click here to read our detailed findings and methodology
Source: Courtesy of FirstEnergy Corp. via Flickr
40. FirstEnergy (NYSE: FE)
> Long-term debt: $17.8 billion
> Debt-to-equity ratio: 2.61
> Annual revenue: $11.3 billion
> Industry: Utilities
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Source: BrokenSphere / Wikimedia Commons
39. PG&E Corp. (NYSE: PCG)
> Long-term debt: $18.6 billion
> Debt-to-equity ratio: 1.44
> Annual revenue: $16.8 billion
> Industry: Utilities
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Source: Marko Georgiev / Getty Images
38. Merck (NYSE: MRK)
> Long-term debt: $19.8 billion
> Debt-to-equity ratio: 0.74
> Annual revenue: $42.3 billion
> Industry: Pharmaceuticals
Source: Ron Wurzer / Getty Images
37. UPS (NYSE: UPS)
> Long-term debt: $19.9 billion
> Debt-to-equity ratio: 6.56
> Annual revenue: $71.9 billion
> Industry: Mail, package, and freight delivery
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Source: Dan Krauss / Getty Images
36. Cisco Systems (NASDAQ: CSCO)
> Long-term debt: $20.3 billion
> Debt-to-equity ratio: 0.47
> Annual revenue: $49.3 billion
> Industry: Technology
Source: Scott Olson / Getty Images
35. Exxon Mobil (NYSE: XOM)
> Long-term debt: $20.5 billion
> Debt-to-equity ratio: 0.10
> Annual revenue: $290.2 billion
> Industry: Energy
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Source: Scott Olson / Getty Images
34. Procter & Gamble (NYSE: PG)
> Long-term debt: $20.9 billion
> Debt-to-equity ratio: 0.39
> Annual revenue: $66.8 billion
> Industry: Household products
Source: Patrick Smith / Getty Images
33. American Airlines Group (NASDAQ: AAL)
> Long-term debt: $21.2 billion
> Debt-to-equity ratio: -125.32
> Annual revenue: $44.5 billion
> Industry: Airlines
Source: Sean Gallup / Getty Images
32. Amazon.com (NASDAQ: AMZN)
> Long-term debt: $23.5 billion
> Debt-to-equity ratio: 0.54
> Annual revenue: $232.9 billion
> Industry: Online retail
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Source: Courtesy of Enterprise Products Partners
31. Enterprise Products Partners (NYSE: EPD)
> Long-term debt: $24.7 billion
> Debt-to-equity ratio: 1.02
> Annual revenue: $36.5 billion
> Industry: Energy
Source: Scott Olson / Getty Images
30. Caterpillar (NYSE: CAT)
> Long-term debt: $25.0 billion
> Debt-to-equity ratio: 1.78
> Annual revenue: $54.7 billion
> Industry: Construction
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Source: Justin Sullivan / Getty Images
29. Intel (NASDAQ: INTC)
> Long-term debt: $25.1 billion
> Debt-to-equity ratio: 0.34
> Annual revenue: $70.8 billion
> Industry: Technology
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Source: Justin Sullivan / Getty Images
28. Coca-Cola (NYSE: KO)
> Long-term debt: $25.4 billion
> Debt-to-equity ratio: 1.33
> Annual revenue: $31.9 billion
> Industry: Beverages
Source: Courtesy of NextEra Energy
27. NextEra Energy (NYSE: NEE)
> Long-term debt: $26.8 billion
> Debt-to-equity ratio: 0.72
> Annual revenue: $16.7 billion
> Industry: Utilities
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Source: Scott Olson / Getty Images
26. Home Depot (NYSE: HD)
> Long-term debt: $26.8 billion
> Debt-to-equity ratio: -14.27
> Annual revenue: $108.2 billion
> Industry: Specialty retail
Source: Joe Raedle / Getty Images
25. PepsiCo (NASDAQ: PEP)
> Long-term debt: $28.3 billion
> Debt-to-equity ratio: 1.94
> Annual revenue: $64.7 billion
> Industry: Beverages
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Source: Joe Raedle / Getty Images
24. Chevron (NYSE: CVX)
> Long-term debt: $28.7 billion
> Debt-to-equity ratio: 0.18
> Annual revenue: $166.3 billion
> Industry: Energy
Source: Coolcaesar / Wikimedia Commons
23. Amgen (NASDAQ: AMGN)
> Long-term debt: $29.5 billion
> Debt-to-equity ratio: 2.36
> Annual revenue: $23.7 billion
> Industry: Pharmaceuticals
Source: Justin Sullivan / Getty Images
22. McDonald’s (NYSE: MCD)
> Long-term debt: $31.1 billion
> Debt-to-equity ratio: -4.97
> Annual revenue: $21.0 billion
> Industry: Food services
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Source: Rusty Russell / Getty Images
21. HCA Healthcare (NYSE: HCA)
> Long-term debt: $32.0 billion
> Debt-to-equity ratio: -10.98
> Annual revenue: $46.7 billion
> Industry: Health care
Source: Mario Tama / Getty Images
20. Pfizer (NYSE: PFE)
> Long-term debt: $32.9 billion
> Debt-to-equity ratio: 0.52
> Annual revenue: $53.6 billion
> Industry: Pharmaceuticals
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Source: Alan Staats / Getty Images
19. Kinder Morgan (NYSE: KMI)
> Long-term debt: $33.9 billion
> Debt-to-equity ratio: 0.98
> Annual revenue: $14.1 billion
> Industry: Energy
Source: Scott Olson / Getty Images
18. Exelon (NYSE: EXC)
> Long-term debt: $34.1 billion
> Debt-to-equity ratio: 1.11
> Annual revenue: $36.0 billion
> Industry: Utilities
Source: Courtesy of UnitedHealth Group
17. UnitedHealth Group (NYSE: UNH)
> Long-term debt: $34.6 billion
> Debt-to-equity ratio: 0.64
> Annual revenue: $226.2 billion
> Industry: Health care
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Source: Joern Pollex / Getty Images
16. IBM (NYSE: IBM)
> Long-term debt: $35.6 billion
> Debt-to-equity ratio: 2.10
> Annual revenue: $79.6 billion
> Industry: Technology
Source: Mark Makela / Getty Images
15. DowDuPont (NYSE: DD)
> Long-term debt: $37.7 billion
> Debt-to-equity ratio: 0.39
> Annual revenue: $86.0 billion
> Industry: Chemicals
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Source: Koichi Kamoshida / Getty Images
14. United Technologies (NYSE: UTX)
> Long-term debt: $41.2 billion
> Debt-to-equity ratio: 1.01
> Annual revenue: $66.5 billion
> Industry: Aerospace & defense
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Source: Chris Hondros / Getty Images
13. Dell Technologies (NYSE: DELL)
> Long-term debt: $49.2 billion
> Debt-to-equity ratio: -52.23
> Annual revenue: $90.6 billion
> Industry: Technology
Source: slobo / Getty Images
12. Walmart (NYSE: WMT)
> Long-term debt: $50.2 billion
> Debt-to-equity ratio: 0.63
> Annual revenue: $514.4 billion
> Industry: Retail
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Source: Scott Olson / Getty Images
11. Oracle (NYSE: ORCL)
> Long-term debt: $51.7 billion
> Debt-to-equity ratio: 2.31
> Annual revenue: $39.5 billion
> Industry: Technology
Source: Jonathunder / Wikimedia Commons
10. Charter Communications (NASDAQ: CHTR)
> Long-term debt: $69.5 billion
> Debt-to-equity ratio: 1.57
> Annual revenue: $43.6 billion
> Industry: Telecommunications
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Source: Joe Raedle / Getty Images
9. CVS Health (NYSE: CVS)
> Long-term debt: $71.4 billion
> Debt-to-equity ratio: 1.22
> Annual revenue: $194.6 billion
> Industry: Health care
Source: Ethan Miller / Getty Images
8. Microsoft (NASDAQ: MSFT)
> Long-term debt: $72.2 billion
> Debt-to-equity ratio: 0.87
> Annual revenue: $110.4 billion
> Industry: Technology
Source: Bill Pugliano / Getty Images
7. General Motors (NYSE: GM)
> Long-term debt: $73.1 billion
> Debt-to-equity ratio: 1.71
> Annual revenue: $147.0 billion
> Industry: Motor vehicles & parts
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Source: Sascha Steinbach / Getty Images
6. Apple (NASDAQ: AAPL)
> Long-term debt: $93.7 billion
> Debt-to-equity ratio: 0.87
> Annual revenue: $265.6 billion
> Industry: Technology
Source: Mike Simons / Getty Images
5. General Electric (NYSE: GE)
> Long-term debt: $95.2 billion
> Debt-to-equity ratio: 8.35
> Annual revenue: $121.6 billion
> Industry: Industrials
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Source: Bill Pugliano / Getty Images
4. Ford Motor (NYSE: F)
> Long-term debt: $100.7 billion
> Debt-to-equity ratio: 2.80
> Annual revenue: $160.3 billion
> Industry: Motor vehicles & parts
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Source: Spencer Platt / Getty Images
3. Verizon (NYSE: VZ)
> Long-term debt: $105.9 billion
> Debt-to-equity ratio: 1.94
> Annual revenue: $130.9 billion
> Industry: Telecommunications
Source: jeepersmedia / Flickr
2. Comcast (NASDAQ: CMCSA)
> Long-term debt: $107.3 billion
> Debt-to-equity ratio: 2.29
> Annual revenue: $94.5 billion
> Industry: Telecommunications
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Source: Toby Jorrin / Getty Images
1. AT&T (NYSE: T)
> Long-term debt: $166.3 billion
> Debt-to-equity ratio: 0.86
> Annual revenue: $170.8 billion
> Industry: Telecommunications
Detailed Findings
Borrowing habits vary by sector. Capital-intensive industries like energy and utilities often need to borrow to fuel growth. Technology companies like Apple, on the other hand, may need to borrow in order to pay dividends to shareholders even as the bulk of their cash sits in tax havens overseas.
Of the 40 companies with the biggest corporate debt loads, seven are in the technology sector, four in utilities, four in energy, and four in telecommunications. Many of the tech companies on this list are also among the world’s 50 most innovative companies, and many of the industries represented by the most debt-laden companies also operate within America’s 25 thriving industries.
Borrowing activity can influence stock price. Four companies with the biggest debt loads were also among the nine companies that turned their fortunes around in 2018 — companies that had some of the biggest upswings in stock price over the past year. One factor relevant to investors looking at debt-laden companies is the debt-to-equity ratio — the ratio of long-term debt to shareholder equity that measures a company’s ability to cover outstanding debts. Companies with the highest debt-to-equity ratios on this list include General Electric, UPS, and Ford Motor.
Methodology
To determine the companies with the biggest corporate debt, 24/7 Wall St. analyzed the long-term debt of non-financial companies in the Fortune 500 with data from SEC 10-K filings. The debt-to-equity ratio and annual revenue for each company also came from SEC filings. All data is for the most recent fiscal year.
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