leverage

Language: en

🇬🇧 /ˈlɛvərɪdʒ/ 🇺🇸 /ˈlɛvɜrɪdʒ/

📖 Definitions

  1. noun
    The mechanical advantage or power gained by using a lever; the action or advantage of a lever.; The power or ability to influence people, events, or outcomes; strategic advantage.; The use of borrowed funds or financial instruments to increase the potential return of an investment; the ratio of debt to equity in a company or investment.; The degree to which a company or investment is financed by debt rather than equity.
  2. verb
    To use something to maximum advantage; to exploit a resource or situation for a desired outcome.; To use borrowed capital or debt to finance an investment or business operation, thereby increasing potential returns.; To apply physical force using a lever or lever-like mechanism to move or lift something.

🔗 Details

Word forms

uncountable 3rd sing.: leverages Past: leveraged Past part.: leveraged Pres part.: leveraging

Collocations

financial leverageleverage ratiouse leveragegain leverageleverage one's positionoperating leverage

Derivatives

leverleveraged

Synonyms

influenceadvantagecloutpowerweightpull

Antonyms

disadvantageweakness

Commonly confused

lever
EN: 'Lever' is the physical tool (a rigid bar); 'leverage' is the mechanical advantage or influence gained from using it.
leverage
EN: As a verb, 'leverage' is common in business jargon meaning 'to use to maximum advantage'; some style guides prefer simpler alternatives like 'use' or 'exploit.'

Spelling tips

EN: Remember the 'a' in the second syllable: 'lever-age,' not 'leverge.' Also note it is pronounced /ˈlɛvərɪdʒ/ or /ˈliːvərɪdʒ/.

💬 Examples

  1. The crowbar gave him enough leverage to pry the lid off the crate.

  2. Her position as the sole supplier gave her tremendous leverage in the negotiations.

  3. The firm used high leverage to amplify its returns, but this also increased its risk of insolvency.

  4. The company's leverage ratio was considered dangerously high by credit rating agencies.

  5. The startup leveraged its early user base to attract venture capital funding.

  6. The investor leveraged his portfolio by borrowing against his existing holdings to purchase additional assets.

  7. They leveraged the heavy stone into position using a long iron bar.