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Post Highlights Although every company wants to have a strong cash reserve, there are chances having too much cash can be harmful. Read on to find out how! Companies fancy cash, but there is such a thing as having too much of it if you can believe it. A company's cash position is influenced by a variety of factors. At first appearance, it appears that investors should seek corporations with a large cash balance sheet. Debt financing helps a company gear up to improve returns if things are going well, but investors are aware of the risks of debt. Debt can be a problem when things don't go as planned. When it comes to money, there are both good and bad reasons for a company's coffers to be overflowing.

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