Vector Group Ltd (VGR)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | 1,398,590 | 1,393,730 | 1,397,220 |
| Total stockholders’ equity | US$ in thousands | -741,814 | -807,877 | -841,553 | -659,687 | -685,464 |
| Debt-to-capital ratio | — | — | 2.51 | 1.90 | 1.96 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $-741,814K)
= —
The debt-to-capital ratio of Vector Group Ltd has shown variations over the past five years. The ratio decreased from 1.74 in 2019 to 1.88 in 2020, indicating a decrease in the proportion of debt relative to total capital. However, the ratio increased in the subsequent years, reaching 2.51 in 2021 and then slightly moderating to 2.34 in 2022 before further declining to 2.18 in 2023.
A higher debt-to-capital ratio suggests that a larger portion of the company's capital structure is financed through debt rather than equity. The fluctuations in Vector Group Ltd's debt-to-capital ratio may indicate changes in its capital management strategy, including decisions on debt levels and equity financing.
Overall, analyzing the trend in the debt-to-capital ratio can provide insights into the company's leverage position and financial risk. It is important for investors and stakeholders to monitor this ratio to assess the company's ability to meet its debt obligations and its overall financial health.
Peer comparison
Dec 31, 2023