Vector Group Ltd (VGR)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 1.61 | 1.04 | 0.93 |
| Debt-to-capital ratio | — | — | 2.51 | 1.90 | 1.96 |
| Debt-to-equity ratio | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — |
The solvency ratios of Vector Group Ltd provide insight into the company's ability to meet its long-term financial obligations and the extent to which it is financed by debt. The debt-to-assets ratio, which measures the proportion of total assets financed by debt, has shown a slight improvement from 1.55 in 2022 to 1.47 in 2023. This indicates that the company's reliance on debt to fund its assets has decreased, which may enhance its financial stability.
The debt-to-capital ratio, which indicates the percentage of capital that is debt-financed, has also exhibited a positive trend, declining from 2.34 in 2022 to 2.18 in 2023. This reduction suggests that Vector Group Ltd is relying less on debt to finance its operations relative to its capital base, which could reduce financial risk and enhance solvency.
The absence of data for the debt-to-equity ratio and the financial leverage ratio for all years suggests limitations in the available information or reporting practices. These ratios are important for assessing the company's level of debt relative to its equity and overall leverage position.
In conclusion, based on the provided solvency ratios, Vector Group Ltd has shown improvements in managing its debt levels and capital structure over the years, which may contribute to a stronger financial position and improved solvency. Additional ratios such as debt-to-equity and financial leverage ratios would provide a more comprehensive view of the company's solvency position.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 3.29 | 2.99 | 3.50 | 2.21 | 1.96 |
Vector Group Ltd's interest coverage ratio has been gradually improving over the past five years. The ratio stood at 1.66 in 2019 and has seen a consistent upward trend, reaching 3.23 in 2023. This indicates that the company's ability to meet its interest obligations with its operating income has strengthened over the years. A higher interest coverage ratio suggests that Vector Group Ltd is more capable of servicing its debt without risking financial distress. Overall, the increasing trend in the interest coverage ratio reflects positively on the company's financial stability and ability to manage its debt obligations.