Vector Group Ltd (VGR)

Vector Group Ltd's liquidity ratios have shown a positive trend over the past five years. The current ratio, which measures the company's ability to meet short-term obligations with current assets, has gradually increased from 1.48 in 2019 to 3.52 in 2023. This indicates an improving liquidity position and suggests that the company has more than enough current assets to cover its short-term liabilities.

Similarly, the quick ratio, a more stringent measure of liquidity excluding inventory from current assets, has also shown an upward trend from 1.26 in 2019 to 2.88 in 2023. This suggests that Vector Group Ltd is becoming increasingly capable of meeting its short-term obligations without relying on the sale of inventory.

The cash ratio, which provides an even more conservative measure by considering only cash and cash equivalents to current liabilities, has improved from 1.18 in 2019 to 2.70 in 2023. This indicates that the company has a stronger ability to cover its immediate liabilities with its readily available cash resources.

Overall, the improving liquidity ratios of Vector Group Ltd suggest that the company's financial position has strengthened over the years, providing a better buffer against short-term financial challenges.

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Additional liquidity measure

The cash conversion cycle of Vector Group Ltd has shown a fluctuating trend over the past five years. In 2023, the company's cash conversion cycle improved to 38.99 days from 43.91 days in 2022, indicating that the company is managing its working capital more efficiently. This signifies that the company is able to convert its inventory into sales and collect cash from customers more quickly.

Comparing to previous years, the cash conversion cycle was relatively longer in 2021 at 48.48 days, compared to 30.03 days in 2020 and 31.92 days in 2019. This longer cash conversion cycle in 2021 could suggest potential issues with managing inventory, sales collection, or payment to suppliers.

Overall, the trend in Vector Group Ltd's cash conversion cycle reflects improvements in working capital management efficiency in recent years, although there was a spike in 2021. The company's ability to effectively manage its cash conversion cycle is crucial for maintaining liquidity and sustaining financial health.