What Is the Meaning of Financial Leverage and Why Does It Matter? | |
Financial leverage meaning refers to the use of borrowed funds to increase a company’s potential return on investment. By using debt alongside equity, businesses can finance expansion, acquire assets, or boost operations without relying solely on their own capital. While financial leverage can amplify profits when investments perform well, it also increases risk because fixed interest payments must be made regardless of revenue. Understanding financial leverage is crucial for managers, investors, and stakeholders, as it highlights both opportunities and risks. Striking the right balance ensures growth while maintaining financial stability and minimizing potential losses. | |
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| Target State: Texas Target City : India Last Update : Oct 06, 2025 8:11 AM Number of Views: 62 | Item Owner : The Algebra Group Contact Email: Contact Phone: 08287166707 |
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