Ligand Pharmaceuticals Incorporated (LGND)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		4.05	11.90	7.83	5.35	11.92
DOH	days	90.05	30.67	46.60	68.23	30.61

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.05
= 90.05

The days of inventory on hand (DOH) for Ligand Pharmaceuticals, Inc. have varied significantly over the past five years. In particular, there was a notable increase in DOH from 2018 to 2019, indicating that the company held inventory for a longer period before selling it. However, in 2020, there was a substantial decrease in DOH, suggesting improved efficiency in managing inventory levels.

By 2021, the DOH had increased again, although not to the same level as in 2019, indicating a moderate slowdown in inventory turnover. The year 2022 saw a significant decrease in DOH, reflecting a more efficient inventory management strategy.

However, the most recent data for 2023 shows a substantial spike in the DOH figure, reaching 832.26 days. This sharp increase could indicate challenges in inventory management or a sudden shift in business operations that led to excess inventory levels.

Overall, it is essential for Ligand Pharmaceuticals to closely monitor its inventory management practices to ensure optimal levels that support sales growth and profitability while avoiding excessive holding costs associated with high DOH figures.