financial leverage
DefinitionThe degree to which an investor or business is utilizing borrowed money. Companies that are highly leveraged may be at risk of bankruptcy if they are unable to make payments on their debt; they may also be unable to find new lenders in the future. Financial leverage is not always bad, however; it can increase the shareholders' return on their investment and often there are tax advantages associated with borrowing. also called leverage.
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financial leverage is ...
... part of the Lending & Credit subject.
... part of the Lending & Credit subject.
... #61 on our list of the most popular terms.
Related Terms
financial leverage appears in the definitions of these other terms on BusinessDictionary.com
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