Vector Group Ltd (VGR)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,424,268 | 1,427,688 | 1,441,572 | 1,463,112 | 1,441,009 | 1,390,912 | 1,311,402 | 1,261,754 | 1,220,700 | 1,489,747 | 1,739,093 | 1,847,299 | 2,030,799 | 1,921,951 | 1,878,910 | 1,971,582 | 1,938,018 | 1,910,085 | 1,867,283 | 1,765,154 |
| Property, plant and equipment | US$ in thousands | 43,373 | 43,600 | 44,049 | 43,924 | 39,580 | 40,145 | 36,030 | 36,079 | 36,826 | 77,748 | 72,734 | 75,602 | 77,988 | 75,978 | 77,522 | 80,334 | 82,160 | 83,932 | 84,262 | 85,641 |
| Fixed asset turnover | 32.84 | 32.75 | 32.73 | 33.31 | 36.41 | 34.65 | 36.40 | 34.97 | 33.15 | 19.16 | 23.91 | 24.43 | 26.04 | 25.30 | 24.24 | 24.54 | 23.59 | 22.76 | 22.16 | 20.61 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,424,268K ÷ $43,373K
= 32.84
Fixed asset turnover measures the efficiency of a company in generating revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets effectively to generate sales.
In the case of Vector Group Ltd, the fixed asset turnover ratio has been fluctuating over the past eight quarters, ranging from 9.27 to 36.41. The significant increase in Q4 2022 to 36.41 indicates the company was able to generate $36.41 in revenue for every $1 invested in fixed assets during that quarter. This suggests a high level of efficiency in utilizing its fixed assets to generate sales.
However, in subsequent quarters, the fixed asset turnover ratio decreased but remained relatively high, indicating that Vector Group Ltd continued to effectively utilize its fixed assets to generate revenue. The slight fluctuations in the ratio over the quarters suggest some variability in the company's operational efficiency but overall, the company appears to be efficiently managing its fixed assets to generate sales.
Peer comparison
Dec 31, 2023