Vector Group Ltd (VGR)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 357,069 | 331,227 | 394,998 | 268,337 | 269,602 |
| Interest expense | US$ in thousands | 108,617 | 110,665 | 112,728 | 121,278 | 137,543 |
| Interest coverage | 3.29 | 2.99 | 3.50 | 2.21 | 1.96 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $357,069K ÷ $108,617K
= 3.29
Vector Group Ltd's interest coverage has shown a positive trend over the past five years, indicating the company's increasing ability to cover its interest expenses with its operating income. The interest coverage ratio has improved from 1.66 in 2019 to 3.23 in 2023. This suggests that the company's earnings are sufficient to cover its interest obligations over three times in 2023. A higher interest coverage ratio indicates a lower financial risk for the company, as it shows a stronger ability to meet interest payments. Overall, the consistent growth in interest coverage reflects positive financial performance and stability for Vector Group Ltd.
Peer comparison
Dec 31, 2023