Levi Strauss Return On Equity vs. Operating Margin
| LV2B Stock | EUR 15.95 0.18 1.12% |
For Levi Strauss profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Levi Strauss to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Levi Strauss Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Levi Strauss's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Levi Strauss Co over time as well as its relative position and ranking within its peers.
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Levi Strauss Operating Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Levi Strauss's current stock value. Our valuation model uses many indicators to compare Levi Strauss value to that of its competitors to determine the firm's financial worth. Levi Strauss Co is rated second overall in return on equity category among its peers. It is rated below average in operating margin category among its peers reporting about 0.36 of Operating Margin per Return On Equity. The ratio of Return On Equity to Operating Margin for Levi Strauss Co is roughly 2.76 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Levi Strauss' earnings, one of the primary drivers of an investment's value.Levi Operating Margin vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
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| = | 0.32 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
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| = | 0.12 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Levi Operating Margin Comparison
Levi Strauss is rated below average in operating margin category among its peers.
Levi Strauss Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Levi Strauss, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Levi Strauss will eventually generate negative long term returns. The profitability progress is the general direction of Levi Strauss' change in net profit over the period of time. It can combine multiple indicators of Levi Strauss, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
It designs, markets, and sells jeans, casual and dress pants, tops, shorts, skirts, jackets, footwear, and related accessories for men, women, and children in the Americas, Europe, and Asia. The company was founded in 1853 and is headquartered in San Francisco, California. LEVI STRAUSS operates under Apparel Manufacturing classification in Germany and is traded on Frankfurt Stock Exchange. It employs 14800 people.
Levi Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Levi Strauss. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Levi Strauss position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Levi Strauss' important profitability drivers and their relationship over time.
Use Levi Strauss in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Levi Strauss position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Levi Strauss will appreciate offsetting losses from the drop in the long position's value.Levi Strauss Pair Trading
Levi Strauss Co Pair Trading Analysis
The ability to find closely correlated positions to Levi Strauss could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Levi Strauss when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Levi Strauss - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Levi Strauss Co to buy it.
The correlation of Levi Strauss is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Levi Strauss moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Levi Strauss moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Levi Strauss can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Levi Strauss position
In addition to having Levi Strauss in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Small & Mid Caps ETFs theme has 19 constituents at this time.
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Additional Information and Resources on Investing in Levi Stock
When determining whether Levi Strauss offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Levi Strauss' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Levi Strauss Co Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Levi Strauss Co Stock:Check out Correlation Analysis. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
To fully project Levi Strauss' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Levi Strauss at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Levi Strauss' income statement, its balance sheet, and the statement of cash flows.