Ligand Pharmaceuticals Incorporated (LGND)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	37,563	36,390	27,380	17,886	10,535	30,485	41,153	51,845	52,827	43,197	40,490	58,722	62,176	61,931	56,838	33,889	30,419	20,617	17,411	12,172
Inventory	US$ in thousands	14,114	13,440	20,708	21,337	23,969	25,392	26,906	14,011	13,294	22	24,773	25,614	27,326	32,996	39,946	36,932	26,487	13,430	3,702	7,320
Inventory turnover		2.66	2.71	1.32	0.84	0.44	1.20	1.53	3.70	3.97	1,963.50	1.63	2.29	2.28	1.88	1.42	0.92	1.15	1.54	4.70	1.66

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $37,563K ÷ $14,114K
= 2.66

Ligand Pharmaceuticals Incorporated's inventory turnover ratio has fluctuated over the years based on the provided data. The inventory turnover ratio indicates how efficiently the company is managing its inventory by showing how many times the company's inventory is sold and replaced over a specific period.

From March 31, 2020, to June 30, 2021, the inventory turnover ratio showed a relatively stable trend, ranging from 0.92 to 4.70. A higher ratio is generally preferred as it suggests that the company is selling its inventory quickly, resulting in lower holding costs and potentially higher profits.

However, from September 30, 2021, the inventory turnover ratio spiked unexpectedly to 1,963.50, which seems like an outlier or data error. It is crucial to verify this extreme value to ensure data accuracy and reliability.

The ratio gradually decreased from December 31, 2021, to March 31, 2024, indicating a potential slowdown in inventory turnover efficiency during those periods. However, the ratio started to pick up again from June 30, 2024, to December 31, 2024, suggesting an improvement in managing inventory turnover.

Overall, further investigation and analysis are required to understand the reasons behind the fluctuations in Ligand Pharmaceuticals Incorporated's inventory turnover ratio and to evaluate the company's effectiveness in managing its inventory levels.