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Leverage is a financial concept that involves using borrowed money or financial instruments to potentially increase returns on investments. It also refers to the amount of debt a firm uses to finance its assets. Leverage is a technique used to assess risk in business organizations by analyzing the relationship between different financial variables such as costs, output, sales revenue, and earnings.

#influence#costs#output#variable#financial analysis#debt#sales revenue#fixed costs#investment strategy#financial instruments#borrowed capital#risk evaluation#earnings before interest and tax (ebit)#earning per share (eps)

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