Ligand Pharmaceuticals Incorporated (LGND)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	133,379	199,338	288,204	176,413	85,278
Property, plant and equipment	US$ in thousands	15,607	12,482	13,191	13,191	7,185
Fixed asset turnover		8.55	15.97	21.85	13.37	11.87

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $133,379K ÷ $15,607K
= 8.55

Fixed asset turnover is a financial ratio that measures how efficiently a company is generating revenue from its fixed assets. In the case of Ligand Pharmaceuticals, Inc., the fixed asset turnover ratio has fluctuated over the past five years.

In 2023, the fixed asset turnover ratio was 8.41, down from 15.72 in 2022. This significant decrease indicates that Ligand Pharmaceuticals generated less revenue in relation to its fixed assets in 2023 compared to the previous year.

Looking at the trend over the past five years, the fixed asset turnover ratio has shown variability, ranging from a low of 8.41 in 2023 to a high of 16.74 in 2019. This suggests that the company's efficiency in utilizing its fixed assets to generate revenue has not been consistent.

Further analysis and comparison with industry benchmarks or competitors' ratios may provide additional insights into Ligand Pharmaceuticals, Inc.'s operational efficiency and asset utilization. It is important for the company to investigate the factors contributing to the fluctuating fixed asset turnover ratio and take measures to improve efficiency in utilizing its fixed assets to drive revenue generation.