leveraged company


A company that uses debt in its capital structure. The term often refers to firms that have a large percentage of debt relative to equity when compared against peers in the same industry. Many financiers believe that the optimum capital structure requires some level of borrowing, though the exact percentage will vary depending on the industry and management's preferences. However, companies that do not have debts on their balance sheets tend to survive better in a recession.

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Leveraged Buyout Leveraged Employee Stock Ownership Plan (LESOP)