Financial leverage

Use of debt to increase the expected return on equity. Financial leverage is measured by the ratio of debt to debt plus equity. The New York Times Financial Glossary

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financial leverage UK US noun [U]
FINANCE the relationship between the amount of money that a company or organization owes and the value of the company or organization: »

Competitive businesses require more equity and less financial leverage than monopoly businesses.


Financial and business terms. 2012.

Look at other dictionaries:

  • financial leverage — Use of debt to increase the expected return on equity. Financial leverage is measured by the ratio of debt to debt plus equity. Bloomberg Financial Dictionary * * * financial leverage financial leverage ➔ leverage1 * * * financial leverage UK US… …   Financial and business terms

  • financial leverage — Fin the use of debt finance to increase the return on equity by deploying borrowed funds in such a way that the return generated is greater than the cost of servicing the debt. If the reverse is true, and the return on deployed funds is less than …   The ultimate business dictionary

  • financial leverage — relation between foreign capital and a business capital (Accounting) …   English contemporary dictionary

  • financial leverage — See: gearing …   Accounting dictionary

  • financial leverage — See gearing …   Big dictionary of business and management

  • Financial leverage clientele — A group of investors who have a preference for investing in firms that adhere to a particular financial leverage policy. The New York Times Financial Glossary …   Financial and business terms

  • financial leverage clientele — A group of investors who have a preference for investing in firms that adhere to a particular financial leverage policy. Bloomberg Financial Dictionary …   Financial and business terms

  • Financial leverage ratios — Related: capitalization ratios. The New York Times Financial Glossary …   Financial and business terms

  • financial leverage ratios — Common ratios are debt divided by equity a debt divided by the sum of debt plus equity. Related: capitalization ratios. Bloomberg Financial Dictionary …   Financial and business terms

  • Degree Of Financial Leverage - DFL — A leverage ratio summarizing the affect a particular amount of financial leverage has on a company s earnings per share (EPS). Financial leverage involves using fixed costs to finance the firm, and will include higher expenses before interest and …   Investment dictionary

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