Meaning & Definition of word "Leverage"

Leverage

/ˈlɛvərɪdʒ/

1. The exertion of force by means of a lever or an object used in the manner of a lever.
- Example: The engineer designed the bridge to utilize leverage effectively in distributing weight.
2. The advantage or power gained from a situation or resource.
- Example: The company used its financial leverage to acquire a smaller competitor.
3. The ability to influence a situation or an outcome.
- Example: The negotiators had leverage in the talks because of their financial backing.

1. To use something to maximum advantage.
- Example: We can leverage our network to gain new clients.
2. To increase the influence or effect of something.
- Example: The team needs to leverage their unique skills to enhance project outcomes.

From French 'levier', meaning 'to raise, to lift'.

leverage buyout:

A strategy in which a company is purchased with a combination of equity and debt.

leverage point:

A point at which a small change can lead to significant results.

financial leverage:

The use of debt to acquire additional assets.

lever:

A simple machine that amplifies an input force to provide a greater output force.

leverage ratio:

A financial ratio that measures the extent of a company's use of debt financing.

Meaning: To use resources to gain an advantage.

Example Sentence: We need to leverage our network to get that deal.

Meaning: To manipulate a situation to one's benefit.

Example Sentence: She managed to leverage her connections to land that job.