Ligand Pharmaceuticals Incorporated (LGND)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		0.78	1.46	3.97	2.28	1.15
DOH	days	465.20	249.61	91.85	160.42	317.82

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.78
= 465.20

The days of inventory on hand (DOH) for Ligand Pharmaceuticals Incorporated has shown fluctuations over the years.

In 2020, the DOH was recorded at a relatively high level of 317.82 days, suggesting that the company held inventory for an extended period before selling it. This may indicate inefficiencies in inventory management or slow-moving inventory.

By the end of 2021, there was a significant decrease in DOH to 160.42 days. This could imply improved inventory turnover efficiency or adjustments in inventory management practices.

The following year, in 2022, the DOH decreased further to 91.85 days, indicating a more efficient inventory management system and better control over inventory levels.

In 2023, there was a notable increase in DOH to 249.61 days, suggesting a potential buildup of inventory or slower sales during that period.

By the end of 2024, the DOH surged to 465.20 days, representing a substantial increase in the number of days it took for the company to sell its inventory. This could signal challenges in demand forecasting or supply chain disruptions impacting inventory turnover.

In conclusion, analyzing Ligand Pharmaceuticals' DOH trend indicates varying levels of inventory management efficiency and sales performance over the years, thereby highlighting the importance of closely monitoring inventory turnover to optimize working capital and operational performance.