What is a disagreement of maturity?
Mismatch of maturity is a type of imbalance of assets and obligations in the balance sheet of the company. In this case, the company does not have enough short -term assets to fulfill the current obligations, and may have the opposite problem with medium -term and long -term assets and liabilities. Asset distribution in the company can provide guides at the level of liquidity and trust in the market. It can also issue companies to a high financial risk if they do not use the relevant proceedings. Various tactics can be used to reduce risks. This may include market positions and investment distribution across different types of assets to have access to liquidity. Companies with maturity mismatch have a short -term problem because they have payable obligations such as credit payments, public services and license fees, but do not have assets to meet these obligations.
Looking at the long -term, the company may have more assets in the future, but cannot access them immediate use. Meanwhile her future duties of notThey are wandering into assets, which means that society has more money than it needs for the future. Although it may be a strategic step, the mismatch of maturity can also be an inefficient use of assets. For example, maturation bonds in 10 years could be more useful if the upcoming commitments were covered immediately.
The balance sheets should provide information on assets and liabilities and disagreement can be identified by data review. Changes between statements can also detect maneuvering to correct mismatch, which can provide insight into the company's financial situation. For insurers and creditors, the evaluation of this information is important because it can play a role in what kinds of politicians and loans will be turned off. For example, if a company has evident liquidity problems, this could be at a high risk of the default loan value.relying on disagreement of maturity for information can be errorsOU, unless investors also take into account other factors. The balance sheets should be considered as as much as possible about the company to determine their relevance. Extraordinary circumstances can also be discussed in an annual report that will let people know what is happening and why. This can change the role of mismatch in the company's finance, because it could be calculated for a specific purpose, or it could be accidental and in the process of repair.