Vector Group Ltd (VGR)
Quick 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 | 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 |
| Receivables | US$ in thousands | 26,442 | 27,924 | 45,431 | 30,500 | 49,131 | 29,917 | 34,007 | 29,885 | 27,015 | 46,426 | 51,463 | 45,905 | 40,711 | 43,999 | 32,760 | 39,453 | 36,959 | 42,653 | 44,347 | 36,440 |
| 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 |
| 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 |
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 measures a company's ability to pay its short-term obligations using its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its current liabilities.
Based on the data provided for Vector Group Ltd, we observe fluctuations in the quick ratio over the past eight quarters. In Q4 2023, the quick ratio stood at 2.88, indicating a significant improvement from the previous quarter and surpassing the threshold of 1. This suggests that Vector Group Ltd had more than enough liquid assets to cover its short-term liabilities at the end of Q4 2023.
The quick ratio decreased in Q3 2023 to 1.79, the same level as Q2 2023, potentially indicating that the company had a temporary decrease in its liquidity position during that period. However, it rebounded back to 1.87 in Q1 2023, showing a slightly improved ability to meet short-term obligations.
Comparing this performance to the previous year, we note that the quick ratio was relatively stable in Q4 2022 at 2.28, subsequently fluctuating in the following quarters before reaching 1.57 in Q3 2022. The quick ratio then increased to 1.71 in Q2 2022 and further to 1.90 in Q1 2022, indicating an improving trend in the company's liquidity position over that period.
Overall, the quick ratio of Vector Group Ltd has shown variability over the past eight quarters, with some quarters indicating strong liquidity and others pointing to potential short-term liquidity challenges. Investors and analysts may want to monitor this ratio over time to assess the company's ability to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023