• Leverage

    Pronunciation

    Origin

    lever + -age

    Full definition of leverage

    Noun

    leverage

    (usually uncountable; plural leverages)
    1. A force compounded by means of a lever rotating around a pivot; see torque.A crowbar uses leverage to pry nails out of wood.
    2. By extension, any influence which is compounded or used to gain an advantage.Try using competitors’ prices for leverage in the negotiation.
    3. (finance) The use of borrowed funds with a contractually determined return to increase the ability of a business to invest and earn an expected higher return, but usually at high risk.Leverage is great until something goes wrong with your investments and you still have to pay your debts.
      • 1933, Jun 4, Trusts Heartened by Security Rally, In such cases where there is a multiple capital structure the factor known as leverage comes into play.
    4. (business) The ability to earn very high returns when operating at high capacity utilization of a facility.Their variable-cost-reducing investments have dramatically increased their leverage.
      • 2011, April 15, Saj Chowdhury, Norwich 2 - 1 Nott'm Forest, The former Forest man, who passed a late fitness test, appeared to use Guy Moussi for leverage before nodding in David Fox's free-kick at the far post - his 22nd goal of the season.

    Synonyms

    Verb

    1. (transitive, chiefly US, slang, business) To use; to exploit; to take full advantage (of something).
      They plan to leverage the publicity into a good distribution agreement.
      They plan to leverage off the publicity to get a good distribution agreement.

    Derived terms

    Synonyms

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