Asset/Liability Management

What Does Asset/Liability Management Mean?
A technique companies employ in coordinating the management of assets and liabilities so that an adequate return may be earned.

Also known as "surplus management."

Investopedia explains Asset/Liability Management
By managing a company's assets and liabilities, executives are able to influence net earnings, which may translate into increased stock prices.

Filed Under: Financial Theory

Related Terms

Asset
Asset-Liability Committee - ALCO
Economic Value Of Equity - EVE
Liability
Net Earnings
Return
More Related Terms

Related Links

Introduction To Fundamental Analysis - Learn this easy-to-understand technique of analyzing a company's financial statements and reports.
Advanced Financial Statement Analysis - Learn what it means to do your homework on a company's performance and reporting practices before investing.

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