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Leverage definition

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Related AccountingTools Courses Corporate Finance Financial Analysis The Interpretation of Financial Statements Related Articles Leverage Ratios Leveraged Lease This issue can be mitigated by restricting the amount of debt that a business takes on, as well as by maintaining a reasonable cash reserve.

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Reverse leverage definition

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Related AccountingTools Courses Corporate Finance Financial Analysis The Interpretation of Financial Statements Related Article Leverage Ratios Since he is generating a negative return of 5% on his investment, David has experienced negative leverage.

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Equity research definition

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Related Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook What is Equity Research? Financial Analysis Calculate the various ratios associated with a company's financial statements and compare them on a trend line to determine the financial condition, financial results, and cash flows of the business.

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Financial leverage definition

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Related Courses Corporate Finance The Interpretation of Financial Statements Treasurer's Guidebook What is Financial Leverage? Financial leverage is the use of debt to buy more assets. Leverage is employed to increase the return on equity.

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Capital structure definition

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Related Courses Corporate Finance The Interpretation of Financial Statements Treasurer's Guidebook What is Capital Structure? Capital structure is the mix of debt and equity that a business uses to fund its operations.

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Simple capital structure definition

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Related Courses Corporate Finance The Interpretation of Financial Statements Treasurer's Guidebook What is a Simple Capital Structure? A corporation with a simple capital structure does not have any securities outstanding that could potentially dilute the value of its earnings per share.

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Complex capital structure definition

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Related Courses Corporate Finance The Interpretation of Financial Statements Treasurer's Guidebook What is a Complex Capital Structure? A startup company commonly develops a complex capital structure over time, as it goes through multiple rounds of financing.