Many companies turn to equity or debt financing to raise capital. Some even combine the two. However, the following firms have said no to any form of financing and remain as debt-free as possible.

Bed Bath & Beyond

Since it went public in 1992, the retail store company has not obtained any amount of debt. That approach helped them surpass the effects of the Great Recession. Aside from having no debt, the American company’s financial statement indicated more than $850 million in cash and marketable securities last year.

Bed Bath & Beyond, founded in 1971, used equity financing to expand between the 1990s and early 2000s. But its strong cash flow in the 21st century has allowed them to repurchase over $4 billion in stock. Also, many industry analysts predicted the firm’s strong reserves and lack of debt may one day reach the radar of business magnate Warren Buffett.

Chipotle Mexican Grill

The restaurant company, being one of the fastest growing fast food chains in the United States, has been featured in several business journals. Despite the economic turbulence, the company rapidly grew between 2005 and 2015 without borrowing money. The firm instead fueled its growth using the cash flow from its successful operations. Also, the strong performance of Chipotle’s stock, trading at nearly $750 a share, makes equity financing extremely lucrative for them.


Established in 1971, the payroll maker takes pride in firmer financial ratios and investors’ more bullish outlooks. Paychex, similar to the first two companies, lacks debt. This is partly attributed to being unencumbered by interest payments on such obligations. As of this year, the firm has a gross margin of 70.6% and an operating margin of 38.7%.

And it has exhibited an impressive performance amidst the Great Recession. Amid massive job losses, its margins and revenues dropped only slightly from 2008 to 2010. For growth capital, they turn to equity financing and operational cash flow. The firm is also popular for paying above average dividends, making it one of the top choices among traders.