it is highly leveraged

USAGE SUMMARY

The phrase "it is highly leveraged" is correct and usable in written English.
It can be used in financial contexts to describe a situation where a company or investment has a high level of debt relative to equity. Example: "The startup is highly leveraged, which increases its risk but also its potential for high returns."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

5 human-written examples

It is highly leveraged.

The New York Times

Mr. Brock also likes Adelphia, even though it is highly leveraged.

The New York Times

This exploitative practice is known as "QuickPay", and it is highly leveraged against the truck drivers.

TechCrunch

He says Capital One is a target, as it is highly leveraged and its tangible net worth vs. assets is "minuscule".

Forbes

Dex also is interesting to Osterweis because it is highly leveraged and is using its ample free cash flow, $500 million annually, to pay down debt: 8% in 2004, 9% projected this year and 11% in 2006.

Forbes

Human-verified similar examples from authoritative sources

Similar Expressions

49 human-written examples

He injects little of his own equity and is highly leveraged.

The Guardian - Business

The block grant money from the federal government is highly leveraged.

The New York Times

Bard is highly leveraged, carrying a hundred and sixty million dollars of debt, which is close to its operating budget of a hundred and eighty-five million.

The New Yorker

They then started looking for investors to help pay for the construction of a plant and to provide much needed capital for a company that is highly leveraged.

The New York Times

We observe that Royal Mail's model is highly leveraged with a fixed cost base in the short term and if conditions have worsened, there is likely to be a noticeable leveraged impact.

The Guardian - Business

In a setting with an LOR, an EBITDA-based IDR is thus mostly ineffective, unless the (gamma ) parameter is utterly small or the firm is highly leveraged.

Business Research

Expert writing Tips

Best practice

When using the phrase "it is highly leveraged", ensure you are referring to a situation where debt is intentionally used as a financial strategy, not simply a state of being in debt. This distinction clarifies the intended meaning and avoids misinterpretations.

Common error

Avoid using "it is highly leveraged" when simply describing a company with a lot of debt. Leverage implies a strategic decision to use debt to amplify returns, so if there's no intention or strategy behind the debt, a more neutral term like "heavily indebted" may be more appropriate.

Linguistic Context

The phrase "it is highly leveraged" functions as a descriptive adjective phrase, modifying a noun (often a company, investment, or situation) to indicate a significant reliance on debt financing. As Ludwig AI indicates, this usage is grammatically correct and common.

Expression frequency: Common

Frequent in

News & Media

50%

Science

25%

Formal & Business

25%

Less common in

Wiki

0%

Encyclopedias

0%

Reference

0%

Ludwig's WRAP-UP

In summary, the phrase "it is highly leveraged" is a grammatically correct and relatively common way to describe an entity's financial structure, particularly in business and investment contexts. Ludwig AI confirms its validity and frequent usage. The phrase indicates a strategic reliance on debt to amplify returns, implying both potential gains and increased risk. While alternative phrases like "it is heavily indebted" exist, they may lack the nuance of strategic intent inherent in "it is highly leveraged". It is important to note that while using debt, leverage can be helpful, but it can be a high risk. When communicating this concept, carefully consider the context and intended audience to ensure clarity and accuracy.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

it is significantly indebted

Focuses more directly on the state of being in debt rather than the strategic use of leverage.

it is deeply in debt

Emphasizes the severity of the debt level.

it is heavily geared

Uses 'geared' as a synonym for 'leveraged', common in financial contexts.

it has a high debt-to-equity ratio

A more technical way of expressing high leverage, focusing on the ratio.

it is overextended

Suggests that the entity has taken on more debt than it can comfortably manage.

it is financially strained

Indicates that the high leverage is causing financial difficulties.

it has a precarious financial position

Highlights the vulnerability resulting from high leverage.

it is burdened by debt

Emphasizes the negative impact of the debt.

it is vulnerable due to debt

Highlights the vulnerability of it related to its exposure to debts.

it carries substantial debt

Indicates a significant amount of debt is held.

FAQs

When is it appropriate to use the phrase "it is highly leveraged"?

Use "it is highly leveraged" when describing a situation where debt is strategically employed to increase potential returns or amplify investment power. This often applies to companies, investments, or financial strategies intentionally utilizing borrowed capital.

What's the difference between "it is highly leveraged" and "it is heavily indebted"?

"It is highly leveraged" implies a strategic use of debt to enhance returns, whereas "it is heavily indebted" simply indicates a high level of debt, without necessarily implying a strategic intent.

What are some alternatives to "it is highly leveraged"?

Depending on the context, you could use alternatives like "it is heavily geared", "it has a high debt-to-equity ratio", or "it is overextended" to convey a similar meaning with slightly different nuances.

Can "it is highly leveraged" have negative connotations?

Yes, while leverage can amplify gains, it also magnifies losses. Therefore, stating that "it is highly leveraged" can imply a higher risk profile, suggesting that the entity is more vulnerable to financial downturns or interest rate increases.