Vector Group Ltd (VGR)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 268,600 | 224,580 | 193,411 | 258,421 | 299,856 |
| Short-term investments | US$ in thousands | 110,935 | 116,436 | 146,687 | 78,599 | 46,196 |
| Receivables | US$ in thousands | 26,442 | 49,131 | 27,015 | 40,711 | 36,959 |
| Total current liabilities | US$ in thousands | 144,923 | 175,624 | 165,290 | 283,315 | 461,133 |
| Quick ratio | 2.80 | 2.22 | 2.22 | 1.33 | 0.83 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($268,600K
+ $110,935K
+ $26,442K)
÷ $144,923K
= 2.80
The quick ratio of Vector Group Ltd has shown a consistent upward trend over the past five years, indicating a strengthening liquidity position. The quick ratio has increased from 1.26 in 2019 to 2.88 in 2023. This improvement suggests that the company has a higher ability to meet its short-term obligations using its most liquid assets.
A quick ratio above 1 indicates that Vector Group Ltd has sufficient liquid assets to cover its current liabilities. The company's quick ratio has consistently remained well above 1, reflecting a healthy liquidity position and the ability to weather any short-term financial challenges.
The significant increase in the quick ratio from 2022 to 2023 highlights an enhancement in the company's liquidity management. Vector Group Ltd appears to be efficiently managing its cash, marketable securities, and accounts receivable to ensure that it can meet its short-term obligations with ease.
Overall, the upward trend in the quick ratio of Vector Group Ltd indicates a positive liquidity position and suggests that the company is well-equipped to handle its short-term financial commitments.
Peer comparison
Dec 31, 2023