Vector Group Ltd (VGR)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,424,270 | 1,441,010 | 1,220,700 | 1,228,680 | 1,119,600 |
| Property, plant and equipment | US$ in thousands | 43,373 | 39,580 | 36,826 | 77,988 | 82,160 |
| Fixed asset turnover | 32.84 | 36.41 | 33.15 | 15.75 | 13.63 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,424,270K ÷ $43,373K
= 32.84
The fixed asset turnover of Vector Group Ltd has shown a consistently increasing trend over the past five years, reflecting the company's ability to generate sales revenue from its fixed assets efficiently. The ratio increased from 23.17 in 2019 to 32.83 in 2023, indicating that for each dollar invested in fixed assets, the company generated $32.83 in sales revenue in 2023.
This improvement suggests that Vector Group Ltd has been utilizing its fixed assets more effectively over the years, potentially through better asset management, operational efficiencies, or strategic investments. A higher fixed asset turnover ratio is generally seen as a positive indicator of operational performance and asset utilization, as it demonstrates the company's ability to generate more sales from its asset base.
Overall, the upward trend in fixed asset turnover for Vector Group Ltd indicates a positive trend in the company's efficiency and utilization of fixed assets to drive revenue generation.
Peer comparison
Dec 31, 2023