Meaning of the word leverage in English

What does leverage mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

leverage

US /ˈlev.ɚ.ɪdʒ/
UK /ˈliː.vər.ɪdʒ/
"leverage" picture

Noun

1.

the use of a small amount of something to produce a large effect

Example:
The company used its brand recognition as leverage to enter new markets.
Having a good education can give you significant leverage in your career.
2.

the ratio of a company's debt to its equity; the use of borrowed capital to finance an investment

Example:
High financial leverage can increase both potential returns and risks.
The company decided to reduce its leverage to improve its financial stability.

Verb

to use something to maximum advantage

Example:
We need to leverage our existing resources to achieve better results.
The team was able to leverage their diverse skills to solve the complex problem.