Ligand Pharmaceuticals Incorporated (LGND)

Working capital turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Revenue (ttm) US$ in thousands 167,133 152,422 133,478 118,313 131,314 153,595 186,815 217,868 219,582 241,673 240,420 267,676 277,133 274,650 251,663 208,408 186,419 143,432 126,392 109,959
Total current assets US$ in thousands 331,559 309,388 312,259 368,913 237,429 257,761 276,711 328,195 263,601 220 243,784 276,066 464,751 432,082 410,901 437,428 500,559 857,741 863,624 830,727
Total current liabilities US$ in thousands 37,112 24,772 18,565 17,818 16,782 18,866 29,388 98,929 98,810 135 167,853 42,578 41,665 36,297 52,497 95,805 100,111 42,300 31,370 20,438
Working capital turnover 0.57 0.54 0.45 0.34 0.60 0.64 0.76 0.95 1.33 2,843.21 3.17 1.15 0.66 0.69 0.70 0.61 0.47 0.18 0.15 0.14

December 31, 2024 calculation

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

Ligand Pharmaceuticals Incorporated's working capital turnover ratio has shown variability over the periods provided. Initially, from March 31, 2020, to June 30, 2021, the ratio gradually increased from 0.14 to 0.70, indicating a more efficient management of working capital during this time. However, a significant spike was observed on September 30, 2022, when the ratio unexpectedly surged to 2,843.21, suggesting a potential anomaly or irregularity in the financial data.

Subsequently, the working capital turnover ratio declined sharply, dropping to 0.34 by March 31, 2024. This downward trend continued until December 31, 2024, where the ratio slightly rebounded to 0.57. The decreasing trend in the ratio post-September 2022 may indicate challenges in managing working capital efficiently, potentially leading to liquidity issues or ineffective asset utilization.

Overall, fluctuations in Ligand Pharmaceuticals' working capital turnover ratio reflect changes in the company's working capital management practices and efficiency. It is essential for the company to closely monitor its working capital turnover ratio to ensure optimal utilization of resources and maintain financial stability in the long run.