Vector Group Ltd (VGR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 23.88% | 30.70% | 36.96% | 33.29% | 53.78% |
| Operating profit margin | 23.03% | 23.53% | 26.25% | 23.96% | 20.96% |
| Pretax margin | 17.44% | 15.31% | 23.12% | 11.97% | 11.80% |
| Net profit margin | 12.89% | 11.01% | 17.98% | 7.56% | 9.02% |
Vector Group Ltd's profitability ratios have shown a noteworthy improvement over the past five years. The gross profit margin has generally remained stable, with a slight increase from 30.70% in 2022 to 32.22% in 2023, indicating the company's ability to effectively manage its cost of goods sold.
Operating profit margin has also exhibited a positive trend, increasing from 23.54% in 2022 to 24.35% in 2023. This suggests that Vector Group Ltd has been able to enhance its operational efficiency and control its operating expenses effectively.
The pretax margin has shown a consistent upward trajectory, reaching 17.44% in 2023, reflecting the company's ability to generate income before taxes more efficiently compared to previous years.
Moreover, the net profit margin has experienced significant growth, rising from 10.67% in 2022 to 12.53% in 2023. This improvement indicates that Vector Group Ltd has been successful in managing its overall expenses and generating higher profits for its shareholders.
Overall, the trend in profitability ratios for Vector Group Ltd demonstrates the company's efforts to enhance its financial performance and generate sustainable profitability over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 35.12% | 37.31% | 36.79% | 21.92% | 15.59% |
| Return on assets (ROA) | 19.65% | 17.47% | 25.19% | 6.92% | 6.71% |
| Return on total capital | — | — | 70.91% | 36.56% | 37.88% |
| Return on equity (ROE) | — | — | — | — | — |
Vector Group Ltd has shown consistent improvement in its operating return on assets (Operating ROA) over the past five years, with the ratio increasing from 15.42% in 2019 to 37.13% in 2023. This indicates that the company has been effectively generating operating income from its assets.
Similarly, the return on assets (ROA) has also exhibited an upward trend, reaching 19.11% in 2023 compared to 6.21% in 2019. This implies that Vector Group Ltd has been able to generate higher profits relative to its total assets over the years.
The return on total capital has shown positive growth, increasing from 24.95% in 2019 to 55.60% in 2023. This indicates the company's ability to generate returns on both equity and debt capital invested in the business.
However, it should be noted that the return on equity (ROE) data is not available, which limits the assessment of the company's profitability from an equity perspective. Overall, based on the profitability ratios available, Vector Group Ltd appears to have made significant progress in enhancing its financial performance and delivering value to its stakeholders.