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LEVI (Levi Strauss) Financial Strength : 6 (As of May. 2025)


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What is Levi Strauss Financial Strength?

Levi Strauss has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Levi Strauss's Interest Coverage for the quarter that ended in May. 2025 was 9.73. Levi Strauss's debt to revenue ratio for the quarter that ended in May. 2025 was 0.39. As of today, Levi Strauss's Altman Z-Score is 2.91.


Competitive Comparison of Levi Strauss's Financial Strength

For the Apparel Manufacturing subindustry, Levi Strauss's Financial Strength, along with its competitors' market caps and Financial Strength 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's Financial Strength Distribution in the Manufacturing - Apparel & Accessories Industry

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

* The bar in red indicates where Levi Strauss's Financial Strength falls into.


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Levi Strauss Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Levi Strauss's Interest Expense for the months ended in May. 2025 was $-12 Mil. Its Operating Income for the months ended in May. 2025 was $115 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in May. 2025 was $1,984 Mil.

Levi Strauss's Interest Coverage for the quarter that ended in May. 2025 is

Interest Coverage=-1*Operating Income (Q: May. 2025 )/Interest Expense (Q: May. 2025 )
=-1*114.8/-11.8
=9.73

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Levi Strauss's Debt to Revenue Ratio for the quarter that ended in May. 2025 is

Debt to Revenue Ratio=Total Debt (Q: May. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(254.9 + 1984.3) / 5784
=0.39

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Levi Strauss has a Z-score of 2.91, indicating it is in Grey Zones. This implies that Levi Strauss is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.91 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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  (NYSE:LEVI) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Levi Strauss has the Financial Strength Rank of 6.


Levi Strauss Financial Strength Related Terms

Thank you for viewing the detailed overview of Levi Strauss's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


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.
Executives
David Jedrzejek officer: SVP and General Counsel C/O LEVI STRAUSS & CO., 1155 BATTERY STREET, SAN FRANCISCO CA 94111
David A Friedman director C/O LEVI STRAUSS & CO., 1155 BATTERY STREET, SAN FRANCISCO CA 94111
Bradley J. Haas 10 percent owner C/O ARGONAUT SECURITIES COMPANY, 1155 BATTERY STREET, SAN FRANCISCO CA 94111
Margaret E. Haas 10 percent owner C/O LEVI STRAUSS & CO., 1155 BATTERY STREET, SAN FRANCISCO CA 94111
Harmit J Singh officer: Executive VP and CFO 71 SOUTH WACKER DRIVE, 12TH FLOOR, CHICAGO IL 60606
Christopher J Mccormick director 669 HALYARD LANE, LONGBOAT KEY FL 34228
Tracy Layney officer: EVP and Chief HR Officer C/O LEVI STRAUSS & CO., 1155 BATTERY STREET, SAN FRANCISCO CA 94111
Elizabeth T O'neill officer: EVP & Pres.Prod., Innov. Supp. C/O LEVI STRAUSS & CO., 1155 BATTERY STREET, SAN FRANCISCO CA 94111
Seth Jaffe officer: EVP & General Counsel 3250 VAN NESS AVE, SAN FRANCISCO CA 94109
Lisa Stirling officer: Chief Accounting Officer C/O LEVI STRAUSS & CO., 1155 BATTERY STREET, SAN FRANCISCO CA 94111
Michelle Gass director, officer: President 2401 UTAH AVE. S., SUITE 800, SEATTLE WA 98134
Seth M. Ellison officer: EVP & President, Europe C/O LEVI STRAUSS & CO., 1155 BATTERY STREET, SAN FRANCISCO CA 94111
Jennifer A. Sey officer: Brand President C/O LEVI STRAUSS & CO., 1155 BATTERY STREET, SAN FRANCISCO CA 94111
Patricia Salas Pineda director C/O LEVI STRAUSS & CO., 1155 BATTERY STREET, SAN FRANCISCO CA 94111
Jennifer C. Haas 10 percent owner C/O ARGONAUT SECURITIES COMPANY, 1155 BATTERY STREET, SAN FRANCISCO CA 94111