Leverage - Revision history

Designing Buildings at 08:19, 14 February 2021

2021-02-14T08:19:31Z

← Older revision		Revision as of 08:19, 14 February 2021
Line 21:		Line 21:
	* Yield.		* Yield.

−	[[Category:Theory]]	+	[[Category:DCN_Definition]] [[Category:Definitions]] [[Category:Theory]] [[Category:Disambiguation]]

Designing Buildings at 10:17, 2 December 2019

2019-12-02T10:17:20Z

← Older revision		Revision as of 10:17, 2 December 2019
Line 1:		Line 1:
−	~~= Introduction =~~	+	There are several meanings of the word leverage:
−		+
−	There are several ~~interpretations~~ of the word ~~‘leverage’, each of which is in current usage.~~	+

	* Traditionally, a lever was a slim object that, because it pivots about a point, could be used to apply leverage. So, it might entail using a rod or bar to partially raise or shift a heavy object off the ground; or, the use of a knife to prise the lid off a jar or tin. In both cases, leverage is the force that is applied at one end of the implement (lever) to achieve the desired end of moving an object.		* Traditionally, a lever was a slim object that, because it pivots about a point, could be used to apply leverage. So, it might entail using a rod or bar to partially raise or shift a heavy object off the ground; or, the use of a knife to prise the lid off a jar or tin. In both cases, leverage is the force that is applied at one end of the implement (lever) to achieve the desired end of moving an object.

Designing Buildings at 10:16, 2 December 2019

2019-12-02T10:16:44Z

← Older revision		Revision as of 10:16, 2 December 2019
Line 3:		Line 3:
	There are several interpretations of the word ‘leverage’, each of which is in current usage.		There are several interpretations of the word ‘leverage’, each of which is in current usage.

−	Traditionally, a lever was a slim object that because it pivots about a point, could be used to apply leverage. So, it might entail using a rod or bar to partially raise or shift a heavy object off the ground~~, such as a large boulder. Or~~, the use of a knife to prise the lid off a jar or tin. In both cases, leverage is the force that is applied at one end of the implement (lever) to achieve the desired end of moving an object. ~~Some levers can provide better leverage than others, e.g a long pole may be better than a chisel at applying leverage in a particular situation, etc.~~	+	* Traditionally, a lever was a slim object that, because it pivots about a point, could be used to apply leverage. So, it might entail using a rod or bar to partially raise or shift a heavy object off the ground; or, the use of a knife to prise the lid off a jar or tin. In both cases, leverage is the force that is applied at one end of the implement (lever) to achieve the desired end of moving an object.
−		+	* Leverage is also said to exist when an individual, a firm or larger entity is able to steer people, situations and events to its advantage (to exert influence or force). So, for example, a main contractor may have enough leverage over suppliers to ensure they give the best possible prices; perhaps by virtue of the contractor’s size and influence.
−	~~== Other meanings ==~~	+	* In commercial situations, leverage is said to occur when borrowed capital is used to fund an investment, e.g where debt is incurred to grow a business, such as expanding a firm’s asset base by borrowing. In this case, leveraging is an investment strategy which uses borrowed money to increase the returns on investment. A company is said to be ‘highly leveraged’ if rather than relying on investor (equity) financing, it relies heavily on debt financing (borrowing).
−		+
−	~~In recent years, the term leverage has been used in non-technical situations to mean something completely different to the above. The term can be used in the following ways:~~	+
−		+
−	~~Ability to influence things~~	+
−		+
−	Leverage is said to exist when an individual, a firm or larger entity is able to steer people, situations and events to its advantage.	+
−		+
−	So, for example, a main contractor may have enough leverage over suppliers to ensure they give the best possible prices; perhaps by virtue of the contractor’s size and influence on the project, and on future projects, suppliers give the most favourable rates. Another example may be that as the only architect in the room, Jones could exercise considerable leverage over the client’s design intentions.	+
−		+
−	~~Using debt for business gain~~	+
−		+
−	In a commercial ~~scenario~~, leverage is said to occur when borrowed capital is used to fund an investment, e.g where debt is incurred to grow a business, such as expanding a firm’s asset base by borrowing. In this case, leveraging is an investment strategy which uses borrowed money to increase the returns on investment.	+
−		+
−	A company is said to be ‘highly leveraged’ if rather than ~~rely~~ on investor (equity) financing, it relies heavily on debt financing (borrowing).	+

	= Related articles on Designing Buildings Wiki =		= Related articles on Designing Buildings Wiki =

Editor: moved Leveraging to Leverage

2019-11-01T19:18:41Z

moved Leveraging to Leverage

← Older revision

Revision as of 19:18, 1 November 2019

Editor: Created page with "= Introduction = There are several interpretations of the word ‘leverage’, each of which is in current usage. Traditionally, a lever was a slim object that because it pivot..."

2019-11-01T19:18:04Z

Created page with "= Introduction = There are several interpretations of the word ‘leverage’, each of which is in current usage. Traditionally, a lever was a slim object that because it pivot..."

New page

= Introduction =

There are several interpretations of the word ‘leverage’, each of which is in current usage.

Traditionally, a lever was a slim object that because it pivots about a point, could be used to apply leverage. So, it might entail using a rod or bar to partially raise or shift a heavy object off the ground, such as a large boulder. Or, the use of a knife to prise the lid off a jar or tin. In both cases, leverage is the force that is applied at one end of the implement (lever) to achieve the desired end of moving an object. Some levers can provide better leverage than others, e.g a long pole may be better than a chisel at applying leverage in a particular situation, etc.

== Other meanings ==

In recent years, the term leverage has been used in non-technical situations to mean something completely different to the above. The term can be used in the following ways:

Ability to influence things

Leverage is said to exist when an individual, a firm or larger entity is able to steer people, situations and events to its advantage.

So, for example, a main contractor may have enough leverage over suppliers to ensure they give the best possible prices; perhaps by virtue of the contractor’s size and influence on the project, and on future projects, suppliers give the most favourable rates. Another example may be that as the only architect in the room, Jones could exercise considerable leverage over the client’s design intentions.

Using debt for business gain

In a commercial scenario, leverage is said to occur when borrowed capital is used to fund an investment, e.g where debt is incurred to grow a business, such as expanding a firm’s asset base by borrowing. In this case, leveraging is an investment strategy which uses borrowed money to increase the returns on investment.

A company is said to be ‘highly leveraged’ if rather than rely on investor (equity) financing, it relies heavily on debt financing (borrowing).

= Related articles on Designing Buildings Wiki =

* Accounting.
* Business plan.
* Cash flow.
* Company.
* Investment decision maker.
* Procurement policy.
* Procurement route.
* Profit.
* Quote.
* Residual value.
* Stakeholders.
* Supply chain.
* Yield.

[[Category:Theory]]