leverage
/ˈlɛv.(ə.)ɹɪd͡ʒ/ noun, verb
Forms leverages leveraging leveraged
- noun A force compounded by means of a lever rotating around a pivot. “A crowbar uses leverage to pry nails out of wood.”
- noun (by extension) Any influence which is compounded or used to gain an advantage. “Try using competitors’ prices for leverage in the negotiation.”
- noun (finance) The use of borrowed funds with a contractually determined return to increase the ability 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.”
- noun (finance) The debt-to-equity ratio.
- noun (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.”
- noun (statistics, regression analytics) The distance of between an independent observation and other observations.
- verb (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.”
Synonyms
mechanical advantage gearing operating leverage exploit use purchase leveraging
Etymology
From lever + -age. The verb likely comes from martial arts/judo usage, where one would "use an opponent's leverage (i.e. their weight, height, centre of balance, etc.)" against them in order to defeat them.
Webster’s 1913
Sources: Wiktionary · WordNet 3.0 · Webster’s 1913 — from the Wiktionary entry “leverage”, CC BY-SA 4.0. Details