LEVI (Levi Strauss) Degree of Operating Leverage : 5.48 (As of May. 2026)

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LEVI Levi Strauss & Co LEVI
87 GF Score
Price $19.65
GF Value $21.65
Valuation Fairly Valued
! 2 Warning Signs
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What is Levi Strauss Degree of Operating Leverage?

Levi Strauss LEVI 87 Degree of Operating Leverage is 5.48 as of May. 2026. GuruFocus rates LEVI with a GF Score™ of 87/100 and a GF Value™ of $21.65 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,038 Manufacturing - Apparel & Accessories companies, Levi Strauss ranks worse than 73.89% on this metric.

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Levi Strauss's Degree of Operating Leverage for the quarter that ended in May. 2026 was 5.48. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Levi Strauss's Degree of Operating Leverage or its related term are showing as below:

LEVI's Degree of Operating Leverage is ranked worse than
73.89% of 1038 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.085 vs LEVI: 5.48

Levi Strauss  (NYSE:LEVI) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Levi Strauss Degree of Operating Leverage Related Terms


Levi Strauss Degree of Operating Leverage Historical Data

* Premium members only.

The historical data trend for Levi Strauss's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Levi Strauss Degree of Operating Leverage Chart

Levi Strauss Annual Data
Trend Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23 Nov24 Nov25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -23.89 0.49 -410.81 7.31 40.22

Levi Strauss Quarterly Data
Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 72.03 41.89 40.22 9.49 5.60

LEVI vs VFC, KTB, ZGN: Degree of Operating Leverage Comparison

For the Apparel Manufacturing subindustry, Levi Strauss's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Levi Strauss Degree of Operating Leverage vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Levi Strauss's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Levi Strauss's Degree of Operating Leverage falls into.


LEVI
87GF Score
Levi Strauss & Co LEVI
Degree of Operating Leverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Levi Strauss Degree of Operating Leverage Calculation

Levi Strauss's Degree of Operating Leverage for the quarter that ended in May. 2026 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 757.2 (May. 2026) / 541.6 (May. 2025) - 1 )/( 6609.6 (May. 2026) / 6171.2 (May. 2025) - 1 )
=0.3981/0.071
=5.60***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.

What does a Degree of Operating Leverage of 5.48 mean?
Levi Strauss (LEVI) has a Degree of Operating Leverage of 5.48 as of May. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Levi Strauss and its competitors. According to the industry distribution chart, Levi Strauss ranks #767 out of 1038 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 73.9%.
Is Levi Strauss' Degree of Operating Leverage too high?
Levi Strauss' current Degree of Operating Leverage is 5.48. The Manufacturing - Apparel & Accessories industry median Degree of Operating Leverage is 1.09. Levi Strauss' value of 5.48 is 405.1% above this industry median. Based on the distribution chart, Levi Strauss ranks #767 out of 1038 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, Levi Strauss has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Levi Strauss' Degree of Operating Leverage compare to VFC and KTB?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Levi Strauss ranks #767 out of 1038 companies for Degree of Operating Leverage. This places Levi Strauss in the lower half of its industry. The industry median Degree of Operating Leverage is 1.09. Levi Strauss' value of 5.48 is 405.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Manufacturing - Apparel & Accessories company?
The median Degree of Operating Leverage among Manufacturing - Apparel & Accessories companies is 1.09, based on 1,038 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Levi Strauss's current Degree of Operating Leverage of 5.48 is 405.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Levi Strauss and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Degree of Operating Leverage is 1.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Levi Strauss's current Degree of Operating Leverage is 5.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Levi Strauss stock overvalued right now?
Based on GuruFocus' analysis, Levi Strauss (LEVI) is currently considered Fairly Valued. The stock's GF Value™ is $21.65, compared to a current price of $19.65 — trading 9.2% below its estimated fair value. The current Degree of Operating Leverage is 5.48 and 405.1% above the Manufacturing - Apparel & Accessories industry median of 1.09. Levi Strauss' overall GF Score™ is 87/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Levi Strauss (LEVI), the current Degree of Operating Leverage is 5.48 as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Levi Strauss (LEVI) Overvalued in 2026?

Based on GuruFocus' analysis, Levi Strauss stock appears to be undervalued. The current stock price of $19.65 is trading 9.2% below its estimated GF Value™ of $21.65. GuruFocus considers Levi Strauss to be Fairly Valued.

Key valuation signals for LEVI:

  • Degree of Operating Leverage: 5.48
  • GF Value™: $21.65 vs. price of $19.65 (9.2% below fair value)
  • GF Score™: 87/100 with 2 warning signs
  • Industry Position: 405.1% above the Manufacturing - Apparel & Accessories median (#767 of 1038)

No single metric tells the full story. See the LEVI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Levi Strauss Business Description

Address 1155 Battery Street, San Francisco, CA, USA, 94111
Levi Strauss & Co is involved in designing, marketing, and selling products that include jeans, casual and dresses pants, tops, shorts, skirts, jackets, footwear, and related accessories directly or through third parties and licensees for men, women, and children under Levi's, Dockers, Signature by Levi Strauss & Co. and Denizen brands. The company manages its business according to three regional segments: the Americas, which is the key revenue driver; Europe; and Asia.
87GF Score

Get the complete analysis for LEVI

Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$19.65
Price
$21.65
GF Value