Ligand Pharmaceuticals Incorporated (LGND)

Receivables 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
Receivables	US$ in thousands	39,312	35,038	91,646	59,064	41,748
Receivables turnover		3.39	5.69	3.14	2.99	2.04

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $133,379K ÷ $39,312K
= 3.39

Ligand Pharmaceuticals, Inc.'s receivables turnover ratio has shown fluctuating trends in recent years. The ratio indicates how efficiently the company is managing its receivables by converting them into cash.

For the year ending December 31, 2023, the receivables turnover ratio was 3.34, showcasing a decline compared to 5.60 in the prior year. This implies that Ligand Pharmaceuticals took longer to collect payments from its customers in 2023 than in 2022.

In 2021, the receivables turnover ratio was 3.02, slightly lower than the 3.16 recorded in 2020 but higher than the ratio of 2.88 in 2019. The company's ability to collect receivables improved in 2021 compared to the previous year, though it was lower compared to 2020.

Overall, the downward trend in the receivables turnover ratio in recent years suggests that Ligand Pharmaceuticals may be facing challenges in efficiently collecting payments from its customers, which could impact its cash flow and liquidity position. Further analysis of the company's receivables management practices and collection policies may be warranted to improve its efficiency in this area.