Vector Group Ltd (VGR)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 268,600 | 436,522 | 330,323 | 281,868 | 224,580 | 384,963 | 323,885 | 238,305 | 193,411 | 523,731 | 490,390 | 382,387 | 258,421 | 451,071 | 540,363 | 467,264 | 299,856 | 319,298 | 323,861 | 312,638 |
| Short-term investments | US$ in thousands | 110,935 | 128,704 | 116,131 | 107,035 | 116,436 | 115,824 | 122,394 | 133,338 | 146,687 | 2,208 | 2,481 | 149,087 | 78,599 | 66,472 | 66,990 | 31,727 | 46,196 | 46,123 | 46,269 | 46,047 |
| 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 |
| Cash ratio | 2.62 | 1.67 | 1.51 | 1.70 | 1.94 | 1.45 | 1.57 | 1.72 | 2.06 | 1.36 | 1.35 | 1.60 | 1.19 | 1.32 | 1.22 | 0.97 | 0.75 | 0.60 | 0.66 | 1.19 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($268,600K
+ $110,935K)
÷ $144,923K
= 2.62
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations, while a lower ratio may raise concerns about liquidity.
Looking at the trend in Vector Group Ltd's cash ratio over the past eight quarters, we observe fluctuations. In Q4 2023, the cash ratio improved significantly to 2.70, indicating a strong liquidity position compared to the previous quarters. This suggests that the company had more than enough cash to cover its short-term liabilities at the end of the fourth quarter of 2023.
However, in Q3 2023, the cash ratio dropped to 1.71, indicating a potential strain on liquidity compared to Q2 2023, which had a slightly higher ratio of 1.64. The company's liquidity position improved in Q1 2023 with a cash ratio of 1.74, which was higher than the previous quarter.
Comparing the latest cash ratio to the same period in the previous year, we see that Vector Group Ltd's liquidity position has strengthened from Q4 2022, where the cash ratio was 2.00. The company's liquidity fluctuated throughout 2022, with ratios ranging from 1.48 to 1.76.
Overall, while Vector Group Ltd's cash ratio has shown fluctuations over the past eight quarters, the significant improvement in Q4 2023 suggests a strong liquidity position at the end of the year. Investors and stakeholders may want to closely monitor the company's ability to maintain a sufficient cash reserve to cover its short-term obligations in the future.
Peer comparison
Dec 31, 2023