financial leverage

« Back to Glossary Index

The use of borrowed money to increase production volume, and thus sales and earnings. It is measured as the ratio of total debt to total assets. The greater the amount of debt, the greater the financial leverage.
(source: http://www.businessdictionary.com/definition/financial-leverage.html)

Synonyms:
finantial gearing
« Back to Glossary Index
Share on facebook
Facebook
Share on google
Google+
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on pinterest
Pinterest

Deja una respuesta

Tu dirección de correo electrónico no será publicada. Los campos obligatorios están marcados con *