Vector Group Ltd (VGR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1.32 | 1.41 | 1.53 | 1.61 | 0.91 | 0.94 | 1.00 | 1.04 | 0.97 | 1.04 | 0.93 | 0.93 | 0.79 | 0.81 | 0.97 |
| Debt-to-capital ratio | — | — | — | — | — | 2.45 | 2.46 | 2.50 | 2.51 | 1.70 | 1.73 | 1.88 | 1.90 | 1.90 | 1.92 | 2.06 | 1.96 | 2.15 | 2.06 | 1.74 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The solvency ratios of Vector Group Ltd indicate the company's ability to meet its long-term debt obligations. The debt-to-assets ratio has fluctuated over the quarters, ranging from 1.26 to 1.55, with a higher ratio indicating a larger proportion of assets financed by debt. The trend shows some variability in the company's asset coverage by debt.
Meanwhile, the debt-to-capital ratio has also shown fluctuations, ranging from 2.18 to 2.50. This ratio reflects the proportion of the company's capital structure funded by debt, with a higher ratio indicating a higher level of debt relative to total capital. The trend suggests some variation in the company's reliance on debt for capital funding.
Notably, the debt-to-equity ratio and financial leverage ratio data are missing for the periods provided, which limits our ability to assess the specific level of debt in relation to equity or the overall leverage of the company during those quarters.
In summary, the analysis of Vector Group Ltd's solvency ratios indicates some variability in the company's debt coverage of assets and capital over the quarters, highlighting the importance of monitoring these metrics for a comprehensive evaluation of the company's financial health and risk exposure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.29 | 3.23 | 3.04 | 2.98 | 2.99 | 2.87 | 2.97 | 3.62 | 3.50 | 3.53 | 3.44 | 2.68 | 2.21 | 1.72 | 1.65 | 1.78 | 1.96 | 1.88 | 1.66 | 1.47 |
The interest coverage ratio for Vector Group Ltd has shown consistent improvement over the last eight quarters. The company's ability to cover its interest expenses with operating income has been strengthening steadily, indicating a positive trend in the financial health and stability of the company.
In the most recent quarter (Q4 2023), the interest coverage ratio was 3.23, which means that the company generated operating income more than three times the amount needed to cover its interest expenses. This indicates a strong ability to meet its debt obligations from its operational earnings.
The trend of increasing interest coverage ratios over the past two years reflects improved financial performance and a reduced risk of default on debt payments. It suggests that Vector Group Ltd is effectively managing its debt and has sufficient earnings to service its interest payments comfortably.
Overall, the consistent improvement in interest coverage ratios is a positive sign for Vector Group Ltd, indicating financial stability and a lower risk profile in terms of debt servicing.