Financially, Apollo Group is in stellar shape with a massive net cash position on its balance sheet, and significant free cash flow generation capabilities.

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This healthy free cash flow has enabled the company to pay down the debt from the Washington Group acquisition, leaving it with a strong balance sheet and a net cash position.

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Normally, investors look for strong balance sheets characterized by ample net cash positions and favorable cash generation characteristics.

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Nabors also sports a cash-rich balance sheet with 12% net debt.

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Besides slicing and dicing business segment information, Axa Rosenberg's model looks at each company's overall balance sheet, cash flow from operations and net income.

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The computers compare net income with cash flow from operations and the cash level on the balance sheet.

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