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Definition of Leverage. action of a lever; mechanical power supplied by a lever; influence, ability to affect or alter people or circumstances; use of borrowed money to increase the return on an investment. use one's influence to affect people or circumstances; increase the return on an investment by using borrowed money.
1 Calculating Leverage There are two types of leverage: operating and financial leverage. Operating leverage is the amount of fixed costs in the organization's.  Financial Accounting Pelican Paper, Inc., and Timberland Forest, Inc., are rivals in the manufacture of craft papers. Some financial statement values for each.