This study aims to explore the interactive effects of leverage and cash on their respective speed of adjustment using dynamic trade-off theory. Financial data from 177 firms listed on the Tehran Stock Exchange and Iran Fara Bourse Co. were utilized, spanning the period from 2015 to 2023. Previous literature has only partially elucidated this complex interplay, primarily due to the oversight of the interactive effect of leverage on the speed of cash adjustment. Apart from the magnitude of cash deviation, which adversely affects the Cash Speed of Adjustment (CSOA), both the magnitude and direction of leverage deviation, as well as the direction of cash deviation, positively influence the Speed of Adjustments (SOAs) for leverage and cash. The interactive relationships indicate that firms with high cash reserves and low leverage demonstrate a higher CSOA compared to firms with both high cash and high leverage.