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Thread: leverage

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    #1

    leverage

    If the company is heavy leveraged, it's using borrowed money to struggle with an economic slump? If you leverage a company that means that a group of investors makes an acqusition of the target company?

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    #2

    Re: leverage

    In this sense, it means that the company was using its assets as leverage to borrow more capital. It was "leveraging" its assets. It is heavy in debt.

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    #3

    Re: leverage

    An investment is said to have a high (heavy) leverage, if a large proportion of the company's assets has been bought with borrowed money, i.e. when the company's debt is high compared with the size of its share capital. Such a company is at a disadvantage because the interest it has to pay on its borrowings reduces its earning per share. (after Longman)
    Last edited by vil; 02-Dec-2010 at 12:33.

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