Vector Group Ltd (VGR)
Payables 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 |
| Payables | US$ in thousands | 6,749 | 6,351 | 9,443 | 6,509 | 10,222 |
| Payables turnover | 160.64 | 157.24 | 81.49 | 125.92 | 50.62 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,084,170K ÷ $6,749K
= 160.64
Vector Group Ltd's payables turnover ratio has fluctuated over the last five years, ranging from 81.49 to 157.24. The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the purchases made on credit to the average accounts payable balance. A higher turnover ratio indicates that the company is paying its suppliers more frequently during the year.
In 2023, the payables turnover ratio was 143.04, showing a decrease from 157.24 in 2022. This could indicate that the company took longer to pay its suppliers in 2023 compared to the previous year. However, the ratio is still relatively high, suggesting that Vector Group Ltd is efficiently managing its accounts payable.
On average, Vector Group Ltd paid its suppliers approximately 143 times during the year in 2023. This high turnover rate may signify favorable payment terms with suppliers or a strong cash position that allows for prompt payments. It is essential for analysts to monitor changes in payables turnover over time to assess the company's liquidity and supplier relationships effectively.
Peer comparison
Dec 31, 2023