leverage meaning in financial management
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FINANCE
the ratio of a company's loan capital (debt) to the value of its ordinary shares (equity); gearing.
the use of credit or borrowed capital to increase the earning potential of shares.
verb
verb: leverage; 3rd person present: leverages; past tense: leveraged; past participle: leveraged; gerund or present participle: leveraging
1.
use borrowed capital for (an investment), expecting the profits made to be greater than the interest payable.
"a leveraged takeover bid"
2.
use (something) to maximum advantage.
"the organization needs to leverage its key resources"
the ratio of a company's loan capital (debt) to the value of its ordinary shares (equity); gearing.
the use of credit or borrowed capital to increase the earning potential of shares.
verb
verb: leverage; 3rd person present: leverages; past tense: leveraged; past participle: leveraged; gerund or present participle: leveraging
1.
use borrowed capital for (an investment), expecting the profits made to be greater than the interest payable.
"a leveraged takeover bid"
2.
use (something) to maximum advantage.
"the organization needs to leverage its key resources"
ankit3173:
ordinary shares mean
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