Companies with more cash than debt can be financially resilient, but that doesn’t mean they’re all strong investments. Some lack leverage because they struggle to grow or generate consistent profits, making them unattractive borrowers.

Generating cash is essential for any business, but not all cash-rich companies are great investments. Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.

Shareholders of The Marzetti Company would probably like to forget the past six months even happened. The stock dropped 35.1% and now trades at $111.34. This was partly due to its softer quarterly results and might have investors contemplating their next move.