Ligand Pharmaceuticals Incorporated (LGND)

Total asset 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
Total assets	US$ in thousands	787,216	762,668	1,297,590	1,362,280	1,494,920
Total asset turnover		0.17	0.26	0.22	0.13	0.06

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $133,379K ÷ $787,216K
= 0.17

The total asset turnover ratio measures a company's efficiency in generating revenue from its total assets. A higher total asset turnover ratio indicates that the company is utilizing its assets more effectively to generate sales.

- In 2023, Ligand Pharmaceuticals, Inc. had a total asset turnover ratio of 0.17, indicating that for every dollar of total assets, the company generated $0.17 in revenue. This figure reflects a decrease compared to the previous year.
- In 2022, the company's total asset turnover ratio was 0.26, showing an improvement from the prior year. This suggests that Ligand Pharmaceuticals became more efficient in generating sales relative to its total asset base.
- In 2021, the total asset turnover ratio was 0.21, indicating a moderate level of efficiency in asset utilization for revenue generation.
- In 2020, the total asset turnover ratio stood at 0.14, which was lower than in the previous year. This suggests a decline in the company's ability to generate sales from its assets.
- In 2019, Ligand Pharmaceuticals had a total asset turnover ratio of 0.08, indicating the lowest level of efficiency in utilizing its assets to generate revenue among the years analyzed.

Overall, the trend in total asset turnover for Ligand Pharmaceuticals fluctuated over the period, with varying levels of efficiency in converting total assets into sales. It is essential for the company to continuously monitor and improve its asset turnover ratio to enhance operational efficiency and financial performance.