Ligand Pharmaceuticals Incorporated (LGND)

Number of days of payables

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Payables turnover		40.03	29.81	25.47	37.45	35.95
Number of days of payables	days	9.12	12.25	14.33	9.75	10.15

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 40.03
= 9.12

Ligand Pharmaceuticals, Inc.'s number of days of payables has fluctuated over the past five years. In 2023, the company took approximately 84.27 days to pay off its payables, which represents a significant increase from the previous year where it took 36.67 days. This suggests a potential liquidity strain or a shift in the company's payment practices.

Comparing to 2021 and 2020, where the number of days of payables were 49.33 days and 45.40 days respectively, the increase in 2023 indicates a lengthening of the company's payables turnover cycle.

In 2019, Ligand Pharmaceuticals, Inc. took 77.84 days to pay off its payables, which was closer to the 2023 figure. This suggests that the company's payment practices in 2023 were more similar to those in 2019 rather than the previous two years.

Overall, a higher number of days of payables may indicate potential cash flow issues or changes in vendor payment terms. It is essential for the company to closely monitor and manage its payables turnover cycle to ensure optimal working capital management and financial stability.