Verified Document

CAE Maturity Matching Maturity Matching Case Study

The maturity matching practices at CAE are actually significantly out of balance, though this is not necessarily undesirable giving the current climate and the potential for volatility in CAE's primary industry of operation, namely military and quasi-military endeavors. The disparity between the average life of assets and the average life of liabilities held by the company s obviously in favor of assets, and to a large degree; this means that the company is much heavier on long-term assets than it is on long-term debts, which can suggest that it is not utilizing its assets to their full potential in order to maximize growth. The long-term assets held by the company could be used to fuel growth by borrowing against them or utilizing current cash flow more efficiently, in other words. An examination...

This suggests that though short-term liabilities are being funded by long-term assets, the company is operating more efficiently than an examination of average lives itself seems to suggest.
There is still room for improvement at CAE, however. The company could potentially achieve faster growth by fully utilizing its long-term assets to secure long-term resources (i.e. liabilities) that fuel increased research and development. CAE is already an innovative leader, but increasing that innovation to the maximum extent possible would benefit the company.

Cite this Document:
Copy Bibliography Citation

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now