Financial Modeling Negative Cash

About Financial Modeling Negative Cash

In financial modeling, negative cash can occur on the balance sheet if there is no line of credit or “revolver” built into the model. This is not necessarily a problem; however, it is generally considered best practice to model in a line of credit that is automatically used to fund a potentially negative cash balance. CFI’s LBO modeling course covers how to do this, step by step.


Financial Modeling Negative Cash

Additional Questions and Answers

CFI is the official global provider of financial modeling and valuation analyst FMVA Designation. CFI’s mission is to help anyone become a world-class financial analyst and has a wide range of resources to help you along the way.

In order to become a great financial analyst, below are some additional questions and answers for you to explore further:

  • What are the types of financial models?
  • What is sensitivity analysis?
  • What is bookkeeping?
  • What are the most common valuation methods?

Example Excel Model

Below is a screenshot from one of CFI’s online analyst training and certification courses, offered 100% online.

To learn How to Build an Excel Model step-by-step, click on the image below.

financial modeling questions and answers

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