Ligand Pharmaceuticals Incorporated (LGND)

Total asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	167,133	131,314	196,245	277,133	186,419
Total assets	US$ in thousands	941,774	787,216	762,668	1,301,380	1,362,280
Total asset turnover		0.18	0.17	0.26	0.21	0.14

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $167,133K ÷ $941,774K
= 0.18

The total asset turnover ratio is a measure of how efficiently a company is utilizing its assets to generate revenue. Looking at the data provided for Ligand Pharmaceuticals Incorporated, we can observe the following trends:

1. In December 31, 2020, the total asset turnover ratio was at 0.14, indicating that for every dollar of assets, the company generated $0.14 of revenue. This suggests that the company may not have been utilizing its assets efficiently to generate sales.

2. By December 31, 2021, the total asset turnover ratio improved to 0.21, showing that the company was able to generate more revenue for each dollar of assets compared to the previous year. This improvement indicates better asset utilization.

3. The ratio continued to increase to 0.26 by December 31, 2022, demonstrating that the company was becoming more efficient in utilizing its assets to generate sales. This could indicate improvements in operational efficiency and business performance.

4. However, by December 31, 2023, the total asset turnover ratio dropped to 0.17, which may suggest a decrease in the efficiency of asset utilization in generating revenue compared to the previous year.

5. As of December 31, 2024, the ratio remained relatively stable at 0.18, indicating that the company's asset utilization to generate revenue did not show significant improvement compared to the previous year.

Overall, the trend in Ligand Pharmaceuticals Incorporated's total asset turnover ratio shows fluctuations over the years, with periods of improvement in asset utilization efficiency followed by declines. Further analysis of the company's operational strategies, investments, and revenue generation sources may provide insights into the factors influencing these fluctuations in asset turnover efficiency.