Zero-debt allows substantial financial flexibility, especially for small-cap companies like FutureFuel Corp ( NYSE:FF ), as the company does not have to adhere to strict debt covenants. However, it also faces higher cost of capital given interest cost is generally lower than equity. Zero-debt can alleviate some risk associated with the company meeting debt obligations, but this doesn't automatically mean FF has outstanding financial strength. I recommend you look at the following hurdles to assess FF's financial health. View our latest analysis for FutureFuel