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Finance · Corporate Finance

Leverage

Noun
US US /ˈliːvərɪdʒ/ GB UK /ˈliːvərɪdʒ/
Finance Corporate Finance intermediate

Definition

Using borrowed capital to increase potential return on investment.

Visual Reference

Leverage illustration

Detailed Explanation

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Example

CFOs rely on Leverage when structuring capital and planning corporate strategy.

In Practice

Also known as: Financial Leverage, Gearing. Closely related to Debt, Equity.

Video Explanation

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Case Study

Leverage - key concept in Corporate Finance.

Word Usage

Corporate finance; Private equity; Real estate

Finance Corporate Finance

Use Case

Applied in Corporate Finance contexts: Corporate finance; Private equity

Also Known As

corporate-finance

Synonyms

Financial LeverageGearing

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