What is 'maturity gap' in SAP IS-B-SA-ALM - Asset/Liability Management?

maturity gap - Overview

• Component: IS-B-SA-ALM

• Component Name: Asset/Liability Management

• Description: Gap in the maturity evaluation, which is part of ALM simulation.

maturity gap - Details

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  Key Concepts: 
  Maturity gap is a term used in SAP Asset/Liability Management (IS-B-SA-ALM) to describe the difference between the maturity date of a liability and the maturity date of an asset. It is used to measure the liquidity of a company's assets and liabilities. 
  
  How to use it: 
  The maturity gap can be used to measure the liquidity of a company's assets and liabilities. It is calculated by subtracting the maturity date of a liability from the maturity date of an asset. A positive gap indicates that the company has more assets than liabilities, while a negative gap indicates that the company has more liabilities than assets. 
  
  Tips & Tricks: 
  It is important to keep track of the maturity gap in order to ensure that a company has enough liquidity to meet its obligations. Companies should strive to maintain a positive gap in order to remain financially healthy. 
  
  Related Information: 
  The maturity gap is closely related to other financial metrics such as cash flow, debt-to-equity ratio, and return on equity. These metrics can be used together to gain a better understanding of a company's financial health.