financial leverage

Definition
The 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.




financial leverage is ...
... part of the
Lending & Credit subject.


Related Terms

debt/equity ratio -  More
deleverage -  More
target leverage ratio -  More


financial leverage appears in the definitions of these other terms on BusinessDictionary.com

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