Leverage/Definition: Difference between revisions
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(i) The use of borrowing to increase the amount of money that is available for investment or consumption. (ii) A proportional measure of indebtedness, such as the ratio of a company's debt to its shareholders' [[equity (finance)|equity ]] (the same as British "gearing"), or the ratio of the indebtedness of a household to the net value of its assets (ie net of its debts). | |||
Latest revision as of 04:09, 9 July 2012
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Leverage [r]: (i) The use of borrowing to increase the amount of money that is available for investment or consumption. (ii) A proportional measure of indebtedness, such as the ratio of a company's debt to its shareholders' equity (the same as British "gearing"), or the ratio of the indebtedness of a household to the net value of its assets (ie net of its debts).