Vector Group Ltd (VGR)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 183,526 | 158,701 | 219,463 | 92,938 | 100,974 |
| Total assets | US$ in thousands | 934,095 | 908,591 | 871,087 | 1,343,410 | 1,505,090 |
| ROA | 19.65% | 17.47% | 25.19% | 6.92% | 6.71% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $183,526K ÷ $934,095K
= 19.65%
To analyze Vector Group Ltd's return on assets (ROA) over the past five years, we observe a fluctuating trend in the company's efficiency in generating profits from its assets.
In 2019, the ROA stood at 6.21%, indicating that for every dollar of assets held by the company, it generated a profit of approximately 6.21 cents. This figure increased to 6.73% in 2020, showing a slight improvement in asset utilization efficiency.
A significant improvement was noted in 2021, with the ROA soaring to 24.52%, which suggests a substantial increase in the company's ability to generate profits from its assets. This could be attributed to operational efficiency or better asset management strategies.
Subsequently, in 2022, the ROA decreased to 16.92%, signifying a decline in profitability relative to the prior year. However, the ROA rebounded strongly in 2023 to 19.11%, indicating a positive uptick in asset utilization efficiency and profit generation.
Overall, the fluctuating trend in Vector Group Ltd's ROA over the past five years indicates varying levels of effectiveness in utilizing its assets to generate profits. It is essential for the company to continue monitoring and optimizing its asset management strategies to maintain and enhance its profitability in the future.
Peer comparison
Dec 31, 2023