Vector Group Ltd (VGR)
Working capital 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 |
| Total current assets | US$ in thousands | 509,601 | 492,365 | 471,803 | 663,903 | 681,614 |
| Total current liabilities | US$ in thousands | 144,923 | 175,624 | 165,290 | 283,315 | 461,133 |
| Working capital turnover | 3.91 | 4.55 | 3.98 | 3.23 | 5.08 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,424,270K ÷ ($509,601K – $144,923K)
= 3.91
The working capital turnover ratio for Vector Group Ltd has exhibited fluctuations over the past five years. The ratio decreased from 8.63 in 2019 to 3.91 in 2023, indicating a substantial decline in the efficiency of utilizing working capital to generate revenue. In 2022, there was a slight increase to 4.55, but it then decreased again to 3.98 in 2021, before showing a slight improvement to 5.26 in 2020.
Overall, the trend suggests that the company may be experiencing challenges in effectively managing its working capital to support its operations and generate sales. Further analysis should be conducted to understand the factors contributing to the fluctuations in the working capital turnover ratio and to identify potential areas for improvement in working capital management efficiency.
Peer comparison
Dec 31, 2023