Vector Group Ltd (VGR)
Working capital 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 |
| Total current assets | US$ in thousands | 509,601 | 694,716 | 628,059 | 530,474 | 492,365 | 625,884 | 581,643 | 507,622 | 471,803 | 858,002 | 838,186 | 725,230 | 663,903 | 752,423 | 798,738 | 753,867 | 681,614 | 634,368 | 638,493 | 627,361 |
| Total current liabilities | US$ in thousands | 144,923 | 338,316 | 295,263 | 229,253 | 175,624 | 344,332 | 284,750 | 215,950 | 165,290 | 387,716 | 366,003 | 332,898 | 283,315 | 391,782 | 498,111 | 515,321 | 461,133 | 606,842 | 558,067 | 302,617 |
| Working capital turnover | 3.91 | 4.01 | 4.33 | 4.86 | 4.55 | 4.94 | 4.42 | 4.33 | 3.98 | 3.17 | 3.68 | 4.71 | 5.34 | 5.33 | 6.25 | 8.26 | 8.79 | 69.39 | 23.22 | 5.44 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,424,268K ÷ ($509,601K – $144,923K)
= 3.91
The working capital turnover ratio measures how efficiently a company is able to utilize its working capital to generate sales revenue. A higher ratio indicates better efficiency in utilizing working capital.
Looking at the quarterly trend of Vector Group Ltd's working capital turnover from Q1 2022 to Q4 2023, we observe fluctuations in the ratio. The ratio increased steadily from 1.32 in Q3 2022 to 4.86 in Q1 2023, indicating an improvement in the efficiency of working capital utilization. This peak ratio in Q1 2023 suggests that the company was able to generate approximately $4.86 in sales revenue for every dollar of working capital invested.
However, the ratio then declined in the subsequent quarters, reaching 3.91 in Q4 2023. While the ratio remained above 3 for the last two quarters of the analyzed period, indicating relatively efficient working capital management, the decreasing trend may warrant further investigation.
Overall, the working capital turnover ratio for Vector Group Ltd reflects fluctuating efficiency in utilizing working capital to generate sales revenue during the analyzed period, with potential implications for the company's liquidity and operational performance.
Peer comparison
Dec 31, 2023