OPLeverage
Operating Leverage — Novy-Marx 2011
Leverage
Quick facts
| Factor ID | OPLeverage |
| Display name | Operating Leverage |
| Family | Predictor |
| Category | Leverage |
| Direction | higher_expected_return |
| Status | supported |
| Paper | Novy-Marx 2011 |
| Source tables | — |
| Required fields | — |
| PIT required | yes |
| Coverage | 2010-04-27 – 2026-05-15 · 678,036 rows · 99.0% of panel |
Formula
(1 - profit_to_gr/100) * assets_turn
China adaptation
No adaptation note.
Direction-adjusted cumulative return
Return metrics
| Metric | Value |
|---|---|
| Months in sample | 193 |
| Monthly mean | 0.3800% |
| Monthly std | 1.9321% |
| Annualized Sharpe | 0.68 |
| t-stat (simple) | 2.73 |
| Hit rate (months > 0) | 57.0% |
| Last 12M compounded | 5.22% |
| Cumulative wealth (start = 1) | 2.007 |
Recent 12 months
| Month | L/S return | Cumulative | Names |
|---|---|---|---|
| 2025-05 | -1.13% | 1.886 | 5125 |
| 2025-06 | +0.01% | 1.886 | 5135 |
| 2025-07 | +2.67% | 1.936 | 5136 |
| 2025-08 | +1.17% | 1.959 | 5148 |
| 2025-09 | -0.66% | 1.946 | 5156 |
| 2025-10 | -0.87% | 1.929 | 5160 |
| 2025-11 | +1.80% | 1.964 | 5164 |
| 2025-12 | +2.19% | 2.007 | 5178 |
| 2026-01 | +0.36% | 2.014 | 5177 |
| 2026-02 | -2.37% | 1.967 | 5182 |
| 2026-03 | +2.19% | 2.010 | 5183 |
| 2026-04 | -0.13% | 2.007 | 5182 |
Known data issues
None recorded.
Notes
None recorded.
See also: Leverage family, Factor library, Factor returns.