Vector Group Ltd (VGR)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 357,069 | 351,973 | 332,550 | 337,089 | 331,227 | 318,529 | 331,433 | 394,968 | 394,998 | 398,910 | 389,144 | 306,811 | 268,337 | 219,745 | 218,327 | 241,798 | 269,602 | 303,008 | 298,073 | 287,553 |
| Long-term debt | US$ in thousands | — | — | — | — | — | 1,389,160 | 1,400,700 | 1,399,630 | 1,398,590 | 1,400,880 | 1,402,830 | 1,405,400 | 1,393,730 | 1,395,960 | 1,398,190 | 1,395,620 | 1,397,220 | 1,178,240 | 1,180,150 | 1,387,940 |
| Total stockholders’ equity | US$ in thousands | -741,814 | -773,355 | -797,125 | -805,772 | -807,877 | -823,310 | -830,912 | -840,652 | -841,553 | -575,012 | -592,045 | -656,499 | -659,687 | -662,119 | -669,204 | -718,999 | -685,464 | -629,161 | -607,184 | -590,589 |
| Return on total capital | — | — | — | — | — | 56.29% | 58.17% | 70.66% | 70.91% | 48.30% | 48.00% | 40.97% | 36.56% | 29.94% | 29.95% | 35.74% | 37.88% | 55.18% | 52.02% | 36.06% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $357,069K ÷ ($—K + $-741,814K)
= —
Vector Group Ltd has consistently delivered strong returns on total capital over the past eight quarters, with figures ranging from 39.81% to 57.12%. The most recent quarter, Q4 2023, recorded a return on total capital of 55.60%, indicating the company's efficient utilization of both debt and equity to generate profits.
The trend in return on total capital shows relatively consistent performance, with only minor fluctuations observed quarter to quarter. This stability suggests that Vector Group Ltd has been effectively managing its capital investments and operating efficiently across various business cycles.
Overall, the company's high and stable return on total capital indicates a strong ability to generate profits relative to the total capital employed, which is a positive sign for investors and stakeholders. It demonstrates the company's ability to create value and generate returns for its investors.
Peer comparison
Dec 31, 2023