why is cash considered a negative debt?
Hello WSO community, I was asked to write an essay on why cash is considered negative debt. Do you have any suggestions?
Hello WSO community, I was asked to write an essay on why cash is considered negative debt. Do you have any suggestions?
Career Resources
Career Advancement Opportunities
August 2026 Investment Banking
Overall Employee Satisfaction
August 2026 Investment Banking
Professional Growth Opportunities
August 2026 Investment Banking
Total Avg Compensation
August 2026 Investment Banking
“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”
Leaderboard
| 1 | 99.2 | |
| 2 | 99.0 | |
| 3 | 99.0 | |
| 4 | 99.0 | |
| 5 | 98.9 | |
| 6 | 98.9 | |
| 7 | 98.9 | |
| 8 | 98.9 | |
| 9 | 98.9 | |
| 10 | 98.8 |
“... I believe it was the single biggest reason why I ended up with an offer...”
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Because you can use your on-hand cash balance to pay down debt if needed therefore your debt balance isn’t as large as if you didn’t have any cash
Barney explained it right - on the other side of the coin (I'm a lender) I'd challenge you to consider reasons why lenders such as myself don't like to consider cash on hand as an offset to debt.
Sit ipsam ipsam praesentium sapiente quia. Non modi iure perspiciatis est ut debitis. Et est in enim nam quia veniam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...