Vector Group Ltd (VGR)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 3.52 | 2.80 | 2.85 | 2.34 | 1.48 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $509,601K ÷ $144,923K
= 3.52
The current ratio of Vector Group Ltd has shown a consistent increasing trend over the past five years, indicating an improvement in the company's short-term liquidity position. As of December 31, 2023, the current ratio stands at 3.52, which means the company's current assets are 3.52 times higher than its current liabilities. This suggests that Vector Group Ltd has a strong ability to meet its short-term financial obligations using its current assets.
The significant increase in the current ratio from 2019 to 2023 reflects the company's efforts in managing its current assets and liabilities effectively. A higher current ratio generally signifies a lower risk of financial distress and better liquidity management. It also indicates that Vector Group Ltd has a sufficient cushion to cover its short-term liabilities if needed.
Overall, the current ratio of Vector Group Ltd portrays a positive liquidity position and highlights the company's ability to meet its short-term financial commitments comfortably. However, it is essential to consider other financial metrics and industry benchmarks to gain a comprehensive understanding of the company's overall financial health.
Peer comparison
Dec 31, 2023