The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Vector Group's quick ratio for the quarter that ended in Dec. 2023 was 2.88.
Vector Group has a quick ratio of 2.88. It generally indicates good short-term financial strength.
The historical rank and industry rank for Vector Group's Quick Ratio or its related term are showing as below:
VGR'
s Quick Ratio Range Over the Past 10 Years
Min: 1.26 Med: 2.29 Max: 3.14
Current: 2.88
During the past 13 years, Vector Group's highest Quick Ratio was 3.14. The lowest was 1.26. And the median was 2.29.
VGR's Quick Ratio is ranked better than 88.46% of 52
companies
in the Tobacco Products industry
Industry Median: 0.825
vs VGR: 2.88
Vector Group Quick Ratio Historical Data
The historical data trend for Vector Group's Quick Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Vector Group's Quick Ratio
For the Tobacco subindustry, Vector Group's Quick Ratio, along with its competitors' market caps and Quick Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Vector Group's Quick Ratio Distribution in the Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Vector Group's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Vector Group's Quick Ratio falls into.
Vector Group Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Vector Group's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Vector Group (NYSE:VGR) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Vector Group Quick Ratio Related Terms
Thank you for viewing the detailed overview of Vector Group's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Vector Group Ltd is a holding company whose subsidiaries--Liggett Group, Vector Tobacco, and New Valley-- primarily sell tobacco products and invest in real estate. The Liggett Group and Vector Tobacco subsidiaries sell cigarettes, primarily in the discount segment, in the United States under brand names Eagle 20's, Pyramid, Grand Prix, Liggett Select, and Eve. New Valley, through its majority ownership in Douglas Elliman Realty, invests in real estate worldwide. It also operates the largest residential brokerage company in the New York City area and has additional operations in South Florida, Beverly Hills, Aspen, and Connecticut. Tobacco accounts for more than half of total company revenue; real estate makes up the remainder.
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