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PVH (MEX:PVH) Degree of Operating Leverage : 2.51 (As of Jan. 2025)


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What is PVH Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. PVH's Degree of Operating Leverage for the quarter that ended in Jan. 2025 was 2.51. The higher Degree of Operating Leverage, the higher operating risk the company will take.

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

MEX:PVH's Degree of Operating Leverage is ranked worse than
64.02% of 1009 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 0.99 vs MEX:PVH: 2.51

PVH Degree of Operating Leverage Historical Data

The historical data trend for PVH'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.

* Premium members only.

PVH Degree of Operating Leverage Chart

PVH Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.32 -7.10 39.15 45.14 2.51

PVH Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
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 45.14 -194.83 -44.79 -1.41 2.51

Competitive Comparison of PVH's Degree of Operating Leverage

For the Apparel Manufacturing subindustry, PVH'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.


PVH's Degree of Operating Leverage Distribution in the Manufacturing - Apparel & Accessories Industry

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

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


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PVH Degree of Operating Leverage Calculation

PVH's Degree of Operating Leverage for the quarter that ended in Jan. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 16410.369 (Jan. 2025) / 16150.781 (Jan. 2024) - 1 )/( 178500.674 (Jan. 2025) / 158325.059 (Jan. 2024) - 1 )
=0.0161/0.1274
=0.13***

* 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.


PVH  (MEX:PVH) 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.


PVH Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of PVH's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


PVH Business Description

Traded in Other Exchanges
Address
285 Madison Avenue, New York, NY, USA, 10017
PVH designs and markets branded apparel in more than 40 countries. Its key fashion categories include men's dress shirts, ties, sportswear, underwear, and jeans. Its two designer brands, Calvin Klein and Tommy Hilfiger, now generate practically all its revenue after its recent disposition of most of its smaller brands. PVH operates e-commerce sites, about 1,400 stores, and about 1,500 shop-in-shops and concessions. The firm also licenses its brands to third parties and distributes its merchandise through department stores and other wholesale accounts. PVH traces its history to 1881 and is based in New York City.