Explore: Financial Leverage

In finance, leverage, also known as gearing, is any technique involving borrowing funds to buy an investment. Financial leverage is named after a lever

There are various measures of operating leverage, which can be interpreted analogously to financial leverage. One analogy is "fixed costs + variable costs

leverage their capital by borrowing from banks and invest the leveraged capital in financial assets such as stocks and real estate. Risky leveraged behavior

management practices, increasingly complex and opaque financial products, and consequent excessive leverage combined to create vulnerabilities in the system

employ leverage to finance the purchase of the target, the term "leveraged buyout" is typically only employed when the acquiror is a financial sponsor

homemade leverage is the use of personal borrowing of investors to change the amount of financial leverage of the firm. Investors can use homemade leverage to

using given resources to magnify a financial outcome Leverage (football), a personal foul in American football Leverage (negotiation), the ability to influence

component is in relation to the other sources of capital, the greater financial leverage (or gearing, in the United Kingdom) the firm is said to have. Too

measured by profit margin Asset efficiency: measured by asset turnover Financial leverage: measured by equity multiplier ROE = (Profit margin)×(Asset turnover)×(Equity

Negative gearing is a form of financial leverage whereby an investor borrows money to acquire an income-producing investment and the gross income generated