Asset/Liability Management

AAA

DEFINITION of 'Asset/Liability Management'

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.

RELATED TERMS
  1. Net Income - NI

    1. A company's total earnings (or profit). Net income is calculated ...
  2. Return

    The gain or loss of a security in a particular period. The return ...
  3. Economic Value Of Equity - EVE

    A cash flow calculation that takes the present value of all asset ...
  4. Asset-Liability Committee - ALCO

    A risk-management committee in a bank or other lending institution ...
  5. Asset

    1. A resource with economic value that an individual, corporation ...
  6. Liability

    A company's legal debts or obligations that arise during the ...
Related Articles
  1. Introduction To Fundamental Analysis
    Markets

    Introduction To Fundamental Analysis

  2. Advanced Financial Statement Analysis
    Options & Futures

    Advanced Financial Statement Analysis

  3. Finding Per Diem Rates
    Budgeting

    Finding Per Diem Rates

  4. Understanding 'Per Diem'
    Budgeting

    Understanding 'Per Diem'

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center