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Deleverage

Deleverage Definition

Deleverage means decreasing the financial leverage of a company.  Financial leverage can be beneficial, if a company can achieve substantial growth through excessive amounts of debt. If leverage does not achieve further growth, it may become too risky, the company has to delever by decreasing the amount of debt. If the firm is unable to pay off its debt, there will be a significant risk of defaulting.

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Leverage




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