Leverage: meaning, definitions and examples
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leverage
[ ˈlɛvərɪdj ]
business term
Leverage refers to the use of borrowed capital to increase the potential return on investment. It allows individuals or companies to amplify their investments by using a small amount of their own funds alongside borrowed money.
Synonyms
Examples of usage
- The company used leverage to finance its expansion.
- Investors can measure their leverage ratio to assess risk.
- Using leverage can significantly boost profits, but also increases losses.
action
To leverage means to use something to maximum advantage. It often refers to employing resources or relationships to achieve greater results.
Synonyms
Examples of usage
- She leveraged her connections in the industry to secure a better deal.
- The team leveraged their data analytics capabilities to enhance performance.
- We need to leverage our technology to improve customer service.
Translations
Translations of the word "leverage" in other languages:
🇵🇹 alavancagem
- influência
- vantagem
🇮🇳 लाभ उठाना
- प्रभाव
- ताकत
🇩🇪 Hebel
- Einfluss
- Vorteil
🇮🇩 pengaruh
- daya ungkit
- keuntungan
🇺🇦 важіль
- вплив
- перевага
🇵🇱 dźwignia
- wpływ
- korzyść
🇯🇵 レバレッジ
- 影響
- 利点
🇫🇷 effet de levier
- influence
- avantage
🇪🇸 apalancamiento
- influencia
- ventaja
🇹🇷 kaldıraç
- etki
- avantaj
🇰🇷 레버리지
- 영향
- 이점
🇸🇦 رَافِعَة
- تأثير
- ميزة
🇨🇿 páka
- vliv
- výhoda
🇸🇰 páka
- vplyv
- výhoda
🇨🇳 杠杆
- 影响
- 优势
🇸🇮 vzvod
- vpliv
- prednost
🇮🇸 vökvun
- áhrif
- kostur
🇰🇿 тежек
- әсер
- артықшылық
🇬🇪 ძალაუფლება
- გავლენა
- უპირატესობა
🇦🇿 leverage
- təsir
- üstünlük
🇲🇽 apalancamiento
- influencia
- ventaja
Etymology
The word 'leverage' originated in the 15th century from the Middle French word 'levier', which means 'to raise or lift', derived from the Latin 'levare'. Initially, it had a literal meaning related to physical leverage, referring to the mechanical advantage gained by using a lever. Over time, its meaning broadened to encompass financial contexts, where it refers to borrowing capital to enhance returns on investments. In business parlance, 'leverage' has also evolved to include the strategic advantages gained from various resources, such as relationships or technology. This shift highlights how the concept of leverage has become integral not just to physics, but also to finance and management in the modern age.