Deleveraged: meaning, definitions and examples
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deleveraged
[ dɪˈliːvərɪdʒd ]
financial context
Deleveraged refers to the process of reducing the total debt owed by a person or organization. This often involves selling off assets or increasing cash flows to pay down debts, thereby improving financial stability. Companies may choose to deleverage during economic downturns or after taking on excessive debt.
Synonyms
debt reduction, pay down debt, reduce debt.
Examples of usage
- The company deleveraged by selling off non-essential assets.
- After the financial crisis, many individuals and businesses sought to deleverage.
- Deleveraging can improve a company's credit rating over time.
Translations
Translations of the word "deleveraged" in other languages:
🇵🇹 desalavancado
🇮🇳 डीलेवरेज्ड
🇩🇪 deleveraged
🇮🇩 deleveraged
🇺🇦 делевереджований
🇵🇱 deleveraged
🇯🇵 デレバレッジ
🇫🇷 déleveragé
🇪🇸 desapalancado
🇹🇷 deleveraged
🇰🇷 디레버리지
🇸🇦 خفض الرفع المالي
🇨🇿 deleveraged
🇸🇰 deleveraged
🇨🇳 去杠杆化
🇸🇮 deleveraged
🇮🇸 deleveraged
🇰🇿 делевереджделген
🇬🇪 დელევრაჟირებული
🇦🇿 deleveraged
🇲🇽 desapalancado
Etymology
The term 'deleveraged' originates from the concept of 'leverage' in finance, which refers to the use of borrowed capital to increase the potential return of an investment. The prefix 'de-' signifies a reversal or reduction. The term gained prominence during the late 20th century as financial markets became increasingly complex. With the rise of corporate finance, investment banking, and economic theories surrounding risk management, deleveraging became a key focus during periods of economic instability, especially following significant financial crises. It represents a strategic move by individuals and companies to strengthen their balance sheets by minimizing liabilities. The practice has expanded its relevance in various economic discussions, particularly in relation to sustainability and fiscal responsibility.