Ligand Pharmaceuticals Incorporated (LGND)

Working capital 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 current assets US$ in thousands 331,559 237,429 263,601 464,751 500,559
Total current liabilities US$ in thousands 37,112 16,782 98,810 41,665 100,111
Working capital turnover 0.57 0.60 1.19 0.66 0.47

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $167,133K ÷ ($331,559K – $37,112K)
= 0.57

The working capital turnover ratio for Ligand Pharmaceuticals Incorporated has shown fluctuations over the past five years. The ratio increased from 0.47 in 2020 to 1.19 in 2022, indicating an improvement in the company's efficiency in utilizing its working capital to generate sales. However, there was a significant decline in 2023, where the ratio dropped to 0.60 and remained relatively stable at 0.57 in 2024.

Overall, the company has demonstrated varying effectiveness in managing its working capital over the years. It is crucial for Ligand Pharmaceuticals to closely monitor its working capital turnover ratio to ensure optimal utilization of resources and efficient operations.