Analysis
財務レバレッジ
A measure of the degree to which a company uses borrowed funds to finance its assets, operations, or investments, amplifying potential returns and risks, often expressed as a ratio of debt to equity or assets.
Quick answer: A measure of the degree to which a company uses borrowed funds to finance its assets, operations, or investments, amplifying potential returns and risks, often expressed as a ratio of debt to equity or assets.
This term page is part of the Protermify Finance glossary and is published as static HTML for fast indexing and clear language coverage.
Definition
A measure of the degree to which a company uses borrowed funds to finance its assets, operations, or investments, amplifying potential returns and risks, often expressed as a ratio of debt to equity or assets.
Operational example
High financial leverage increases both the potential return and the risk of insolvency if the company cannot meet its debt obligations.
Localized example
高い財務レバレッジは、潜在的なリターンと債務不履行時の倒産リスクの両方を高めます。
Definition language
English reference definition
Source
CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
Target audience
- Financial Analysts
- Bankers
- Traders
