Vector Group Ltd (VGR)

Liquidity ratios

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
Current ratio 3.52 2.05 2.13 2.31 2.80 1.82 2.04 2.35 2.85 2.21 2.29 2.18 2.34 1.92 1.60 1.46 1.48 1.05 1.14 2.07
Quick ratio 2.80 1.75 1.67 1.83 2.22 1.54 1.69 1.86 2.22 1.48 1.49 1.73 1.33 1.43 1.29 1.04 0.83 0.67 0.74 1.31
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

Vector Group Ltd's liquidity ratios have shown some fluctuations over the past eight quarters. The current ratio, which indicates the company's ability to cover its short-term obligations with its current assets, has generally been high, with Q4 2023 reaching 3.52. This suggests that the company has a strong ability to meet its short-term liabilities using its current assets.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also been relatively healthy, ranging from 1.57 in Q3 2022 to 2.88 in Q4 2023. This indicates that Vector Group Ltd has a satisfactory capacity to meet its immediate obligations without relying on inventory sales.

The cash ratio, which is the most conservative liquidity measure and reflects the company's ability to cover its current liabilities with cash and cash equivalents, has shown a similar trend. The cash ratio varied from 1.48 in Q3 2022 to 2.70 in Q4 2023, indicating that the company has a solid cash position relative to its short-term obligations.

Overall, the liquidity ratios of Vector Group Ltd demonstrate a generally strong liquidity position with fluctuations likely reflecting changes in the company's operating cycle and cash management strategies. These ratios suggest that the company is well-equipped to meet its short-term financial obligations.

Additional liquidity measure

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 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

The cash conversion cycle measures how long it takes for a company to convert its investment in inventory and other resources into cash inflows from sales. A shorter cash conversion cycle indicates that the company is efficiently managing its working capital.

Analyzing the data provided for Vector Group Ltd, we observe fluctuations in the cash conversion cycle over the quarters. In Q4 2023 and Q3 2023, the company's cash conversion cycle stood at 38.99 days and 38.19 days, respectively, indicating an efficient management of working capital during these periods.

However, in Q2 2023 and Q1 2023, the cash conversion cycle increased to 45.05 days and 41.71 days, respectively. This rise suggests a potential delay in converting inventory into sales and collecting cash from customers, which may require attention to streamline operations and improve efficiency.

Comparing the recent quarters to the same periods in the previous year, there is a significant improvement in Q4 2023 and Q3 2023 compared to Q4 2022 and Q3 2022, where the cash conversion cycle was notably higher. This indicates that Vector Group Ltd has made progress in managing its working capital more effectively over the year.

Overall, Vector Group Ltd should continue monitoring and optimizing its cash conversion cycle to ensure efficient management of working capital, timely conversion of inventory, and prompt collection of cash to support its financial health and operational performance.