Ligand Pharmaceuticals Incorporated (LGND)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	170,010	192,291	223,059	237,358	219,555	225,577	224,017	280,928	278,971	292,557	263,940	185,255	166,048	123,061	103,297	84,365	93,671	117,133	135,781	196,095
Property, plant and equipment	US$ in thousands	15,607	16,178	11,382	11,743	12,482	33,418	30,954	24,584	13,191	18,702	17,628	16,896	13,191	7,157	7,883	6,690	7,185	6,411	6,268	5,575
Fixed asset turnover		10.89	11.89	19.60	20.21	17.59	6.75	7.24	11.43	21.15	15.64	14.97	10.96	12.59	17.19	13.10	12.61	13.04	18.27	21.66	35.17

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $170,010K ÷ $15,607K
= 10.89

Ligand Pharmaceuticals, Inc. has shown a fluctuating trend in its fixed asset turnover ratio over the past eight quarters. The highest fixed asset turnover ratio was observed in Q1 2023 at 16.57, indicating that the company generated $16.57 in sales for every $1 invested in fixed assets during that period. This implies efficient utilization of fixed assets to generate revenue.

On the other hand, the lowest fixed asset turnover ratio was recorded in Q3 2022 at 7.23, suggesting a less efficient utilization of fixed assets during that quarter. Overall, the company's fixed asset turnover has shown variability, with some quarters demonstrating higher efficiency in converting fixed assets into sales compared to others.

It is essential for Ligand Pharmaceuticals to closely monitor and manage its fixed asset turnover ratio to ensure optimal utilization of its fixed assets and maximize revenue generation. Variations in the ratio might indicate changes in efficiency or asset management strategies that warrant further analysis and potential adjustments to improve overall performance.