deleveraging
/diːˈlɛvərɪdʒɪŋ/
Definition
The strategic process of reducing the amount of financial debt held by a company, typically to improve its balance sheet and overall financial health.
Etymology
Derived from the prefix 'de-' meaning 'to reverse' or 'remove' combined with 'leverage,' which in finance refers to the use of borrowed capital. It emerged in modern business parlance to describe the specific corporate action of unwinding debt positions.
In the news
BP is selling off venture capital assets to pay down debt, using the term to describe its broader effort to lower its total liabilities to a target range by 2027. This move is essential for the company to achieve greater financial stability and flexibility.
BP's Venture Sale Advances Portfolio Optimization & Deleveraging
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