Financial Leverage Alexandre Veloso Rosano, Sergio Antonio Loureiro Escuder

Abstract

Financial leverage represents raising funds to finance investments. When a company obtains financing to cover this investment, it also acquires obligations. In this case, as discussed in the article, it is necessary to analyze the amounts to be paid, especially the interest arising from these loans, because with a country in crisis, interest rates are increasingly high and the influence of the foreign market is causing financial institutions to demand more, for fear of possible defaults. Overall, it is an important tool for improving the company's production process and increasing wealth. It can also be a parameter for organizational restructuring, and the manager must be very competent to make these decisions. In addition, it was possible to identify how the degree of leverage can be calculated and what benefits it can bring to an organization. This research was of great value in expanding my knowledge and understanding how much these issues are present in the management of a company.