leverage

Definitions

• A force compounded by means of a lever rotating around a pivot; see torque.
• By extension, any influence which is compounded or used to gain an advantage.
• (finance) The use of borrowed funds with a contractually determined return to increase the ability of a business to invest and earn an expected higher return, but usually at high risk.
• (business) The ability to earn very high returns when operating at high capacity utilization of a facility.