Vector Group Ltd (VGR)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 328,035 | 339,010 | 320,439 | 294,428 | 234,615 |
| Total assets | US$ in thousands | 934,095 | 908,591 | 871,087 | 1,343,410 | 1,505,090 |
| Operating ROA | 35.12% | 37.31% | 36.79% | 21.92% | 15.59% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $328,035K ÷ $934,095K
= 35.12%
Operating return on assets (operating ROA) measures a company's ability to generate operating profits from its assets. In the case of Vector Group Ltd, the operating ROA has shown a consistent upward trend over the past five years, reflecting an improvement in the company's operational efficiency and profitability.
The operating ROA for Vector Group Ltd increased from 15.42% in 2019 to 37.13% in 2023, indicating a significant enhancement in the company's ability to generate operating income relative to its assets. This strong performance suggests that Vector Group Ltd has been effectively utilizing its assets to generate operating profits.
Moreover, the steady growth in operating ROA from 2019 to 2023 demonstrates the company's consistent focus on operational excellence and efficiency. This improvement bodes well for the company's overall financial health and indicates a positive trend in its operational performance.
Overall, the increasing trend in operating ROA for Vector Group Ltd showcases the company's success in maximizing the profitability of its assets through efficient operations, which is a favorable indicator for investors and stakeholders.
Peer comparison
Dec 31, 2023