Gap Analysis

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Dictionary Says

Definition of 'Gap Analysis'

1) The process through which a company compares its actual performance to its expected performance to determine whether it is meeting expectations and using its resources effectively. Gap analysis seeks to answer the questions "where are we?" (current state) and "where do we want to be?" (target state).

2) A method of asset-liability management that can be used to assess interest rate risk or liquidity risk excluding credit risk. Gap analysis is a simple IRR measurement method that conveys the difference between rate sensitive assets and rate sensitive liabilities over a given period of time. This type of analysis works well if assets and liabilities are compromised of fixed cash flows. Because of this a significant shortcoming of gap analysis is that it cannot handle options, as options have uncertain cash flows.

Investopedia Says

Investopedia explains 'Gap Analysis'

1) Conducting a gap analysis can help a company re-examine its goals to determine whether it is on the right path to be able to accomplish them. A company will list the factors that define its current state, outline the factors that are required to reach the target state, and then determine how to fill the "gaps" between the two states.

2) Gap analysis was widely used in the 1980's typically in tandem with duration analysis. It was found to be harder to use and less widely implemented than duration analysis but it can still be used to assess exposure to a variety of term structure movements.
Search results for

'Gap Analysis'

  • Introduction to Types of Trading: Technical Traders

    http://www.investopedia.com/articles/trading/02/091802.asp
    ... Gap Analysis A gap occurs when the opening price of a stock is significantly higher
    or lower than its closing price the previous day, possibly because of ...

  • Time To Mind The Gap In Retail

    http://stocks.investopedia.com/stock-analysis/2009/Time-To-Mind-The-Gap-In-Retail--GPS-ARO-URBN0302.aspx
    ... Better yet, Gap has significant upside potential from here. Get Free Stock Analysis
    By Email. IN PICTURES: Top 7 Social Security Myths: Exposed Current Results ...

  • Little Reason To Try On Gap

    http://stocks.investopedia.com/stock-analysis/2011/Little-Reason-To-Try-On-Gap-GPS-LTD-PSUN-ANN-LULU1124.aspx
    ... quotes and insights. Get Free Stock Analysis By Email. Most Recent Quarterly
    Recap Gap's revenue fell 1.9%, to $3.6 billion. By concept ...

  • Is Gap A Value Or Value Trap?

    http://stocks.investopedia.com/stock-analysis/2010/Is-Gap-a-Value-or-Value-Trap-GPS-ANN-M-JCP-JCG0908.aspx
    ... Get Free Stock Analysis By Email. Second Quarter Review Gap reported second quarter
    results that saw sales rise a modest 2% to $3.32 billion as same-store sales ...

  • Gap: Value Or Value Trap?

    http://stocks.investopedia.com/stock-analysis/2009/Gap-Value-Or-Value-Trap-GPS-ARO-BKE-TRLG-SHLD0826.aspx
    ... PICTURES: 20 Tools For Building Up Your Portfolio. Get Free Stock Analysis By Email. ...
    Net square footage fell 0.3% as Gap opened 12 stores but closed 16 locations ...

  • Gap Needs More International

    http://stocks.investopedia.com/stock-analysis/2011/Gap-Needs-More-International-GPS-ARO-LTD-URBN-BKE0301.aspx
    ... Gap. (For related reading, take a look at Analyzing Retail Stocks.). Use the
    Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, ...

  • Gap's Worrisome Cash Flow Trends

    http://stocks.investopedia.com/stock-analysis/2010/Gaps-Worrisome-Cash-Flow-Trends-GPS-JCP-RL-WMT-LTD1123.aspx
    ... supply of new products can drive sales and is something that Gap is looking to ... Stock
    Simulator to trade the stocks mentioned in this stock analysis, risk free! ...

  • Another Opportunity For Gap To Prove Itself

    http://stocks.investopedia.com/stock-analysis/2009/Another-Opportunity-For-Gap-To-Prove-Itself-GPS0528.aspx
    ... (Read Analyzing a Bank's Financial Statements to learn more tools to enhance your
    financial analysis.). As it stands currently, Gap is a middle-of-the-road ...

  • Gap May Outlive Its Competition

    http://stocks.investopedia.com/stock-analysis/2010/Gap-May-Outlive-Its-Competition-GPS0105.aspx
    ... carefully. Get Free Stock Analysis By Email. IN PICTURES: Digging Out Of
    Debt In 8 Steps Gap's Form Fit Gap is not alone. Jefferies ...

  • Joy Global Fills A Gap

    http://stocks.investopedia.com/stock-analysis/2011/Joy-Global-Fills-A-Gap-RDC-JOYG-CAT-NOV-RIG-KMTUY.PK0517.aspx
    ... Comments (0). Joy Global Fills A Gap. Posted: May 17, 2011 09:58 AM by Stephen
    D. Simpson, CFA. ... Filed Under: Stock Analysis,Stocks. ...

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