Vector Group Ltd (VGR)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,084,170 | 998,658 | 769,542 | 819,602 | 517,471 |
| Inventory | US$ in thousands | 91,959 | 92,448 | 94,615 | 97,545 | 98,762 |
| Inventory turnover | 11.79 | 10.80 | 8.13 | 8.40 | 5.24 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,084,170K ÷ $91,959K
= 11.79
The inventory turnover ratio for Vector Group Ltd has fluctuated over the past five years. In 2023, the inventory turnover was 10.50, which indicates that the company turned over its inventory 10.50 times during the year. This was a slight decrease from the previous year's turnover of 10.80. In 2021, the inventory turnover was 8.13, which was lower compared to the two preceding years. However, there was a significant increase in inventory turnover in 2020, with a ratio of 14.02, followed by 13.18 in 2019.
A high inventory turnover ratio generally suggests that the company is efficiently managing its inventory by quickly selling and replenishing stocks. On the other hand, a lower ratio may indicate issues such as overstocking, slow-moving inventory, or inadequate sales.
Overall, while Vector Group Ltd has seen fluctuations in its inventory turnover ratio in recent years, it is essential for the company to monitor and manage its inventory levels effectively to optimize operational efficiency and profitability.
Peer comparison
Dec 31, 2023