Vector Group (Vector Group) Interest Coverage

: 3.42 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Vector Group's Operating Income for the three months ended in Dec. 2023 was $92 Mil. Vector Group's Interest Expense for the three months ended in Dec. 2023 was $-27 Mil. Vector Group's interest coverage for the quarter that ended in Dec. 2023 was 3.42. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Vector Group's Interest Coverage or its related term are showing as below:

VGR' s Interest Coverage Range Over the Past 10 Years
Min: 1.09 Med: 1.83 Max: 3.19
Current: 3.19

VGR's Interest Coverage is ranked worse than
83.87% of 31 companies
in the Tobacco Products industry
Industry Median: 12.84 vs VGR: 3.19

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Vector Group Interest Coverage Historical Data

The historical data trend for Vector Group's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Vector Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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1.71

2.41

2.84

3.07

3.19

Vector Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															3.28	2.71	3.31	3.34	3.42

Competitive Comparison

For the Tobacco subindustry, Vector Group's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Tobacco Products industry and Consumer Defensive sector, Vector Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Vector Group's Interest Coverage falls into.

Vector Group Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Vector Group's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Vector Group's Interest Expense was $-109 Mil. Its Operating Income was $347 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,380 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	346.834	/	-108.617
	=	3.19

Vector Group's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Vector Group's Interest Expense was $-27 Mil. Its Operating Income was $92 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,380 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	91.6	/	-26.763
	=	3.42

The higher the ratio, the stronger the company's Financial Strength is.

Vector Group (NYSE:VGR) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Vector Group Interest Coverage Related Terms

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Vector Group (Vector Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Tobacco Products » Vector Group Ltd (NYSE:VGR) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

VGR:Germany

Address

4400 Biscayne Boulevard, 10th Floor, Miami, FL, USA, 33137

Website

https://www.vectorgroupltd.com

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.

Executives

Bennett S Lebow	director	4400 BISCAYNE BLVD, 10TH FLOOR, MIAMI FL 33137
Kirkland J Bryant Iii	officer: VP, Treasurer & CFO	4400 BISCAYNE BLVD, 10TH FLOOR, MIAMI FL 33137
Richard Lampen	officer: EVP	4400 BISCAYNE BLVD.; 10TH FLOOR, MIAMI FL 33137
Ronald J Bernstein	director, officer: President Subsidiary	4400 BISCAYNE BLVD, 10TH FLOOR, MIAMI FL 33137
Paul V Carlucci	director	4400 BISCAYNE BLVD, C/O VECTOR GROUP LTD., MIAMI FL 33137
Wilson White	director	C/O VECTOR GROUP LTD, 4400 BISCAYNE BLVD; 10TH FLOOR, MIAMI FL 33137
James D Ballard	officer: See Remarks	4400 BISCAYNE BLVD., TENTH FLOOR, MIAMI FL 33137
Nicholas P Anson	officer: President Subsidiary	C/0 LIGGETT VECTOR BRANDS LLC, 3800 PARAMOUNT PARKWAY, MORRISVILLE NC 27560
Frost Phillip Md Et Al	10 percent owner	4400 BISCAYNE BLVD, MIAMI FL 33137-3227
Howard M Lorber	director, officer: President and CEO	4400 BISCAYNE BLVD, 10TH FLOOR, MIAMI FL 33137
Barry Watkins	director	4400 BISCAYNE BLVD, C/O VECTOR GROUP LTD., MIAMI FL 33137
Jeffrey Podell	director	7338 FLORANADA WAY, DELRAY BEACH FL 33446
Henry C Beinstein	director	8 DOGWOOD LANE, LARCHMONT NY 10538-3418
Stanley Samuel Arkin	director	750 LEXINGTON AVENUE, FLOOR 25, NEW YORK NY 10022
Jean E Sharpe	director