Leverage: meaning, definitions and examples
🔗
leverage
[ˈlɛvərɪdj ]
Definitions
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.
Interesting Facts
Etymology
- Originally derived from the Old French term 'levier', meaning 'to raise'.
- The Latin word 'levare' means 'to lift', highlighting the concept of lifting something to achieve more.
- In finance, the term emerged in the early 20th century to describe using borrowed funds to increase potential returns.
Business
- Companies use financial leverage to amplify their profits, but it also increases risks if things go wrong.
- The idea is similar to using a lever in mechanics: a small effort can lead to significant results.
- Leverage ratios help assess how much debt a company uses compared to its equity, influencing investment decisions.
Psychology
- In social situations, leverage can refer to using influence or connections to achieve a goal.
- Individuals often leverage their skills and strengths in personal and professional settings to gain opportunities.
- Understanding how to leverage relationships can lead to better collaboration and success.
Technology
- In the tech industry, leveraging new tools or platforms can lead to more efficient processes and innovation.
- Startups often leverage existing technologies to create new products faster and with lower costs.
- The concept of leveraging data analytics has become crucial for businesses to make informed decisions.
Education
- Teachers leverage technology in classrooms to enhance learning experiences and engagement.
- Educational institutions may leverage partnerships with businesses to provide students with practical skills.
- Scholarships can be seen as a way to leverage knowledge and talent to support students' futures.
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