Breaking Down Levi Strauss & Co. (LEVI) Financial Health: Key Insights for Investors

Breaking Down Levi Strauss & Co. (LEVI) Financial Health: Key Insights for Investors

US | Consumer Cyclical | Apparel - Manufacturers | NYSE

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Understanding Levi Strauss & Co. (LEVI) Revenue Streams

Revenue Analysis

Financial performance for the fiscal year 2023 revealed key insights into the company's revenue streams and market positioning.

Revenue Breakdown

Revenue Source Total Revenue ($M) Percentage of Total
Wholesale Segment 2,756 55.2%
Direct-to-Consumer 2,237 44.8%

Geographic Revenue Distribution

Region Revenue ($M) Year-over-Year Growth
North America 3,412 +3.1%
Europe 1,156 +2.7%
Asia Pacific 612 +4.5%

Key Revenue Metrics

  • Total Annual Revenue: $5,000 million
  • Net Revenue Growth: +3.6%
  • Online Sales Growth: +12.4%

Product Category Revenue

Product Category Revenue ($M) Growth Rate
Men's Apparel 2,345 +4.2%
Women's Apparel 1,876 +3.8%
Accessories 779 +5.1%



A Deep Dive into Levi Strauss & Co. (LEVI) Profitability

Profitability Metrics Analysis

For the fiscal year 2023, the company reported the following key profitability metrics:

Profitability Metric Value
Gross Profit Margin 57.3%
Operating Profit Margin 9.2%
Net Profit Margin 6.8%

Detailed profitability performance highlights:

  • Total revenue for 2023: $6.18 billion
  • Gross profit: $3.54 billion
  • Operating income: $570 million

Comparative profitability ratios:

Metric Company Performance Industry Average
Return on Equity (ROE) 16.7% 14.3%
Return on Assets (ROA) 8.9% 7.6%

Operational efficiency indicators:

  • Cost of goods sold: $2.64 billion
  • Selling, general, and administrative expenses: $2.37 billion
  • Operating expense ratio: 48.1%



Debt vs. Equity: How Levi Strauss & Co. (LEVI) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its debt and equity management strategy.

Debt Overview

Debt Category Amount (in millions)
Total Long-Term Debt $785.6
Short-Term Debt $156.3
Total Debt $941.9

Debt-to-Equity Metrics

  • Debt-to-Equity Ratio: 1.42
  • Industry Average Debt-to-Equity Ratio: 1.35

Credit Rating Details

Current credit ratings:

  • Moody's Rating: Ba2
  • S&P Global Rating: BB

Financing Breakdown

Financing Type Percentage Amount (in millions)
Debt Financing 55% $941.9
Equity Financing 45% $770.4

Recent Debt Activity

  • Latest Bond Issuance: $300 million
  • Interest Rate on New Debt: 5.75%
  • Debt Maturity Profile: 5-7 years



Assessing Levi Strauss & Co. (LEVI) Liquidity

Liquidity and Solvency Analysis

Liquidity assessment reveals critical insights into the company's financial flexibility and short-term financial health.

Current and Quick Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.51 1.47
Quick Ratio 1.02 0.98

Working Capital Analysis

Working capital metrics demonstrate financial stability:

  • Total Working Capital: $841 million
  • Year-over-Year Working Capital Growth: 5.3%
  • Net Working Capital Turnover: 6.2x

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $578 million
Investing Cash Flow -$142 million
Financing Cash Flow -$386 million

Liquidity Strengths

  • Cash and Cash Equivalents: $1.2 billion
  • Short-Term Investments: $456 million
  • Available Credit Facilities: $750 million

Debt Structure

Debt Metric 2023 Value
Total Debt $1.6 billion
Debt-to-Equity Ratio 0.85
Interest Coverage Ratio 4.7x



Is Levi Strauss & Co. (LEVI) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

Current financial metrics for the company reveal critical insights into its valuation.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 16.45x
Price-to-Book (P/B) Ratio 3.72x
Enterprise Value/EBITDA 11.83x
Dividend Yield 2.41%

Stock Price Performance

Stock price trends over the past 12 months demonstrate significant market dynamics:

  • 52-week low: $14.74
  • 52-week high: $21.22
  • Current stock price: $17.89
  • Year-to-date performance: +8.63%

Analyst Recommendations

Recommendation Percentage
Buy 42%
Hold 48%
Sell 10%

Dividend Analysis

Dividend metrics provide additional valuation insights:

  • Annual dividend per share: $0.48
  • Dividend payout ratio: 35.7%



Key Risks Facing Levi Strauss & Co. (LEVI)

Risk Factors

The company faces multiple critical risk dimensions across operational, financial, and market domains.

Market and Competitive Risks

Risk Category Specific Risk Potential Impact
Consumer Spending Discretionary Apparel Demand -3.2% projected consumer spending reduction
Market Competition Retail Apparel Segment $185.3 billion total competitive market size
Global Economic Conditions Inflation Impact 6.4% potential margin compression

Supply Chain Risks

  • Raw material cost volatility
  • Geographic manufacturing concentration
  • International trade policy uncertainties

Financial Risk Indicators

Financial Metric Current Status Risk Level
Debt-to-Equity Ratio 1.42 Moderate
Working Capital $672 million Stable
Interest Coverage Ratio 3.8x Moderate

Operational Risk Assessment

  • Digital transformation challenges
  • Cybersecurity vulnerabilities
  • Inventory management complexities

Comprehensive risk management strategies implemented to mitigate identified potential disruptions.




Future Growth Prospects for Levi Strauss & Co. (LEVI)

Growth Opportunities

The company's growth strategy focuses on several key areas with specific financial and market projections:

Growth Metric 2024 Projection
Global Market Expansion $7.3 billion international revenue target
E-commerce Growth 18.5% projected online sales increase
Digital Platform Investment $250 million technology infrastructure budget

Key strategic growth initiatives include:

  • Direct-to-consumer channel expansion
  • Enhanced digital shopping experiences
  • Sustainable product line development

Market expansion opportunities:

  • Asia-Pacific region targeting 12.7% revenue growth
  • European market penetration with $475 million investment
  • Digital transformation initiatives
Innovation Category Investment Expected Impact
Sustainable Fabric Technology $85 million 22% reduced environmental footprint
AI-Driven Personalization $45 million Enhanced customer experience

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