Small Business Nation

 
 

Leverage

close window
 
 
 
Search
 
 

Leverage is the advantage gained from using borrowed money to acquire income or cash-producing property. A highly leveraged company has a high debt to equity ratio, meaning it has a relatively large amount of debt (borrowed funds) in relation to its equity (invested funds).

 

Copyright © 2008 U.S. Chamber of Commerce 1615 H St NW Washington DC 20062-2000 All Rights Reserved