Ligand Pharmaceuticals Incorporated (LGND)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	97,156	102,116	119,153	136,428	148,009	129,474	122,049	140,362	138,226	203,008	192,265	156,770	141,696	110,296	97,720	89,531	86,995	70,935	69,356	66,385
Inventory	US$ in thousands	23,969	25,392	26,906	14,011	13,294	22,326	24,773	25,614	27,326	32,996	39,946	36,932	26,487	13,430	3,702	7,320	7,296	6,565	9,638	11,905
Inventory turnover		4.05	4.02	4.43	9.74	11.13	5.80	4.93	5.48	5.06	6.15	4.81	4.24	5.35	8.21	26.40	12.23	11.92	10.81	7.20	5.58

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $97,156K ÷ $23,969K
= 4.05

Ligand Pharmaceuticals, Inc.'s inventory turnover has exhibited significant fluctuations over the past eight quarters, ranging from a low of 0.44 in Q4 2023 to a high of 3.97 in Q4 2022. A lower inventory turnover indicates that the company is taking more time to sell its inventory, which may lead to higher carrying costs and potential obsolescence risks.

The substantial decrease in inventory turnover from Q4 2022 to Q3 2023 is noteworthy, dropping from 3.97 to 1.20. However, there was a slight improvement in Q2 2023 and Q1 2023, with inventory turnover increasing to 1.53 and 3.70, respectively. This could indicate better inventory management or increased sales efficiency during these periods.

On average, Ligand Pharmaceuticals, Inc. appears to have moderate inventory turnover based on the historical data provided. It is essential for the company to monitor and manage its inventory levels effectively to ensure optimal utilization of resources and minimize carrying costs. Further analysis and comparison with industry benchmarks could provide additional insights into the company's inventory management performance.