Asset/Liability Management

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Dictionary Says

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 Says

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 Definitions

  •

    Asset

    1. A resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit. 2. A balance sheet item ...
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  • Liability

    A company's legal debts or obligations that arise during the course of business operations. Liabilities are settled over time through the transfer of economic benefits including money, ...
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  • Net Income - NI

    1. A company's total earnings (or profit). Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses. ...
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    • Return

      The gain or loss of a security in a particular period. The return consists of the income and the capital gains relative on an investment. It is usually quoted as a percentage.
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    • Economic Value Of Equity - EVE

      A cash flow calculation that takes the present value of all asset cash flows and subtracts the present value of all liability cash flows. This calculation is used by banks for ...
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    • Asset-Liability Committee - ALCO

      A risk-management committee in a bank or other lending institution that generally comprises the senior-management levels of the institution. The ALCO's primary goal is to evaluate, ...
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