Vector Group Ltd (VGR)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 30.92 | 30.81 | 34.27 | 35.11 | 33.79 | 32.93 | 38.98 | 43.83 | 44.88 | 31.41 | 26.38 | 25.87 | 21.95 | 23.30 | 25.84 | 27.19 | 26.98 | 25.59 | 23.32 | 23.74 |
| Days of sales outstanding (DSO) | days | 6.78 | 7.14 | 11.50 | 7.61 | 12.44 | 7.85 | 9.47 | 8.65 | 8.08 | 11.37 | 10.80 | 9.07 | 7.32 | 8.36 | 6.36 | 7.30 | 6.96 | 8.15 | 8.67 | 7.54 |
| Number of days of payables | days | 2.27 | 2.20 | 2.50 | 1.93 | 2.32 | 2.09 | 3.17 | 3.33 | 4.48 | 5.57 | 3.03 | 3.89 | 1.46 | 2.95 | 3.20 | 3.45 | 2.79 | 3.66 | 2.37 | 2.72 |
| Cash conversion cycle | days | 35.43 | 35.75 | 43.28 | 40.79 | 43.91 | 38.69 | 45.28 | 49.14 | 48.48 | 37.22 | 34.14 | 31.05 | 27.81 | 28.71 | 28.99 | 31.05 | 31.15 | 30.08 | 29.62 | 28.55 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 30.92 + 6.78 – 2.27
= 35.43
The cash conversion cycle (CCC) of Vector Group Ltd has shown fluctuation over the past eight quarters. In Q4 2023 and Q3 2023, the company's CCC stood at 38.99 days and 38.19 days respectively, indicating a relatively efficient cash conversion process. However, there was a noticeable increase in Q2 2023, with the CCC extending to 45.05 days, before slightly improving in Q1 2023 to 41.71 days.
Comparing these recent quarters to the previous year, there has been a significant improvement in the CCC performance. In Q4 2022, the CCC was much higher at 43.91 days, indicating a slower conversion of cash in the business operations. The company faced a particularly challenging period in Q3 2022, with a considerably lengthy CCC of 169.78 days, which improved in Q2 2022 to 99.60 days and further in Q1 2022 to 64.43 days.
The trend in the company's CCC suggests that Vector Group Ltd has made efforts to streamline its cash conversion cycle, leading to more efficient management of working capital. However, there is still some volatility in the CCC figures, indicating potential areas for further optimization in the cash conversion process.
Peer comparison
Dec 31, 2023