deleverage

American  

[dee-lev-er-ij, ‑-lee-ver‑] / diˈlɛv ər ɪdʒ, ‑ˈli vər‑ /

verb (used without object)

deleveraged, deleveraging

1. to decrease financial leverage by paying off debt.

   Their balance sheet significantly improved after they deleveraged.

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verb (used with object)

deleveraged, deleveraging

1. to reduce the debt of.

   He drastically deleveraged the company to make it profitable.

noun

1. an instance of this.

   The economic crisis has forced a deleverage.

deleverage British  

/ diːˈlɛvərɪdʒ, -vrɪdʒ /

verb

1. finance (of an organization) to reduce the ratio of debt capital to equity capital

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Etymology

Origin of deleverage

First recorded in 1980–85; de- ( def. ) + leverage ( def. )

Example Sentences

The company’s store size continues to expand, they add, which could lead to severe operating deleverage if sales growth declines.

From The Wall Street Journal • May 12, 2026

The funds that adjust for volatility, meanwhile, will likely continue to deleverage but “with small impact,” they said.

From MarketWatch • Mar. 27, 2026

Paramount will have nearly $80 billion in debt after the deal and plans to deleverage rapidly, a goal that has raised eyebrows up and down Wall Street.

From Barron's • Mar. 19, 2026

China's years-long effort to deleverage its economy has pushed companies to resort to off-balance sheet investments in search of funding.

From Reuters • Sep. 21, 2021

As I have said repeatedly for months, the problem is that financial institutions are having to deleverage.

From Forbes • Oct. 6, 2014