Meaning of the word "financial leverage" in English

What does "financial leverage" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

financial leverage

US /fəˈnænʃəl ˈlɛvərɪdʒ/
UK /fəˈnænʃəl ˈliːvərɪdʒ/

Noun

the use of borrowed capital for an investment, expecting the profits made to be greater than the interest payable

Example:
The company increased its financial leverage to fund expansion.
High financial leverage can amplify both gains and losses.