Definition from Wiktionary, the free dictionary
- A force compounded by means of a lever rotating around a pivot; see torque.
- A crowbar uses leverage to pry nails out of wood.
- By extension, any influence which is compounded or used to gain an advantage.
- Try using competitors’ prices for leverage in the negotiation.
2011 April 15, Saj Chowdhury, “Norwich 2 - 1 Nott'm Forest”, in BBC Sport:
- The former Forest man, who passed a late fitness test, appeared to use Guy Moussi for leverage before nodding in David Fox's free-kick at the far post - his 22nd goal of the season.
- (finance) The use of borrowed funds with a contractually determined return to increase the ability of a business to invest and earn an expected higher return, but usually at high risk.
- Leverage is great until something goes wrong with your investments and you still have to pay your debts.
1933 June 4, “Trusts Heartened by Security Rally”, in New York Times:
- In such cases where there is a multiple capital structure the factor known as leverage comes into play.
- (business) The ability to earn very high returns when operating at high capacity utilization of a facility.
- Their variable-cost-reducing investments have dramatically increased their leverage.
- (force compounded by a lever): mechanical advantage
- (use of borrowed fund): financial leverage
- (ability to earn high returns from high capacity utilization): operating leverage
force compounded by means of a lever rotating around a pivot
influence which is compounded or used to gain an advantage
use of borrowed funds
- The translations below need to be checked and inserted above into the appropriate translation tables, removing any numbers. Numbers do not necessarily match those in definitions. See instructions at Wiktionary:Entry layout#Translations.
- (transitive, chiefly US, slang, business) To use; to exploit; to manipulate in order to take full advantage (of something).
They plan to leverage the publicity into a good distribution agreement.
They plan to leverage off the publicity to get a good distribution agreement.
use, exploit, take full advantage of