leverage


Also found in: Dictionary, Thesaurus, Medical, Legal, Financial, Wikipedia.
Related to leverage: Leverage ratio, Financial leverage

leverage

1. the action of a lever
2. the mechanical advantage gained by employing a lever
3. the enhanced power available to a large company
4. the use made by a company of its limited assets to guarantee the substantial loans required to finance its business

Leverage

The use of fixed-cost funds to acquire property that is expected to produce a higher rate of return either by way of income or through appreciation.

leverage

[′lev·rij]
(mechanics)
The multiplication of force or motion achieved by a lever.
References in periodicals archive ?
For organizations that issue debt or debt-like instruments directly from an operating insurance company, amounts eligible for operating leverage treatment generally would involve cases where residual risk to the insurer is insignificant.
It is expected that FNT will support the growth of Sedgwick through acquisitions, and consequently, future financial leverage will remain a key rating issue.
Keywords: financial leverage, operating leverage, Return on assets, Return on equity, Net Profit.
Researchers have tended to find only weak relationships between leverage (the ratio of private sector credit to nominal GDP) and banking system vulnerabilities, and more generally have struggled to find reliable forward looking systemic crisis indicators.
Assets also appear in the investment stream in financial leverage, an indicator of the percentage of the firm's assets financed with equity rather than debt.
By mirroring two Rackable Systems S3009-iSCSI servers located in separate data centers, we are able to leverage our existing Ethernet network to provide storage to our user community that is both high performing and highly reliable," said Dustin Machi, manager of the Core Computational Facility at Virginia Bioinformatics Institute.
Every time a sale occurs, the market consolidates and companies lose a little more leverage.
The main reason for the difference is that these other programs allow taxpayers to leverage their investment with the debt of the underlying business or project, thereby increasing the return on equity, such that the tax credit becomes the only source of return the investor requires.
Essentially an extra level of structured financing that is typically used in acquisition or development transactions, mezzanine financing allows the borrower to increase leverage levels by 10-20% over standard first mortgage debt.
The WR must attempt to get an inside-out (I/O) leverage block on all run plays.
You can leverage your time by focusing on these HIPO (high payoff) tasks.
NEW YORK -- According to a special report published today by Fitch Ratings, the number of taxable closed-end funds (CEFs) utilizing auction rate preferred stock (ARPS) as leverage decreased to 40 at year-end 2010, from 112 at year-end 2007.