leveragele·ver·age1 /ˈliːvərɪdʒˈle-, ˈliː-/ noun [uncountableU]1the influence that one person or organization has on anotherIt uses its considerable economic leverage to influence other nations.
2FINANCE the amount of borrowing that a company has in relation to its SHARE CAPITAL (=the money it has from selling its shares). If the company makes more profit by investing this borrowed money in its business activities than it pays in interest, the company’s shareholders will obtain higher payments from their shares. But if the company makes less profit than it pays in interest, shareholders will receive less moneyThe company has reduced its leverage, primarily through asset sales.
a warning to investors about the risks of high leverage
Heavy leverage and aggressive expansion made for a weak balance sheet.
→ debt leverage → financial leverage → loan leverage → see also debt-equity ratio