leverage


leverage
1. The importance of *debt finance in the capital structure of an organization. Most corporations finance their activities through a combination of debt and *equity finance, and economists devote significant energy to determining the optimal mix of the two forms of finance. Excessive leverage can be *risky to the extent that it obliges a corporation to make high *interest payments to service its debts. High leverage may make a corporation dangerously vulnerable to fluctuations in *interest rates or levels of *income. The *debt-equity ratio and *interest cover are common measurements of leverage. 2. In a general sense, the *risks of high levels of *fixed costs on an organization.

Auditor's dictionary. 2014.

Synonyms:
(obtained by the lever)


Look at other dictionaries:

  • leverage — le·ver·age 1 / le vrij, və rij/ n: the use of credit to enhance one s speculative capacity leverage 2 vt aged, ag·ing: to provide (as a corporation) or supplement (as money) with leverage Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • Leverage — Título Leverage(Estados Unidos) Las Reglas del Juego(España) Género Drama Creado por John Rogers Chris Downey Reparto Timothy Hutton …   Wikipedia Español

  • Leverage — (engl. für Hebelwirkung) bezeichnet: Leverage Effekt, einen Begriff der Finanzwirtschaft Leverage (Band), eine finnische Rockband Leverage (Fernsehserie), eine US amerikanische Fernsehserie Diese Seite ist eine …   Deutsch Wikipedia

  • Leverage — Lev er*age (l[e^]v [ e]r*[asl]j or l[=e] v[ e]r*[asl]j), n. The action of a lever; mechanical advantage gained by the lever. [1913 Webster] {Leverage of a couple} (Mech.), the perpendicular distance between the lines of action of two forces which …   The Collaborative International Dictionary of English

  • leverage — /ˈlivəredʒ, ingl. ˈliːvərɪdʒ/ [ingl. leverage propr. «azione di una leva, leveraggio»] s. m. inv. (econ.) leva finanziaria …   Sinonimi e Contrari. Terza edizione

  • leverage — ► NOUN 1) the exertion of force by means of a lever. 2) the power to influence: political leverage …   English terms dictionary

  • leverage — (n.) 1724, action of a lever, from LEVER (Cf. lever) (n.) + AGE (Cf. age). Meaning power or force of a lever is from 1827; figurative sense from 1858. The financial sense is attested by 1933, Amer.Eng.; as a verb by 1956. Related: Leveraged;… …   Etymology dictionary

  • leverage — The first syllable is pronounced leev in BrE and lev in AmE …   Modern English usage

  • leverage — [n] influence advantage, ascendancy, authority, bargaining chip*, break, clout, drag, edge, grease*, jump on*, power, pull, rank, ropes*, suction, weight; concepts 687,693 …   New thesaurus

  • leverage — [lev′ərij, lē′vərij] n. 1. the action of a lever 2. the increased force resulting from this 3. means of accomplishing some purpose vt. leveraged, leveraging to speculate in (a business investment) largely through the use of borrowed funds, or… …   English World dictionary

  • leverage — The ability to control large dollar amounts of a commodity with a comparatively small amount of capital. Chicago Board of Trade glossary The control of a larger sum of money with a smaller amount. By accepting the liability to purchase or deliver …   Financial and business terms