Ligand Pharmaceuticals Incorporated (LGND)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 137.15 | 134.81 | 276.06 | 435.42 | 830.44 | 304.02 | 238.64 | 98.64 | 91.85 | 0.19 | 223.32 | 159.21 | 160.42 | 194.47 | 256.52 | 397.77 | 317.82 | 237.76 | 77.61 | 219.50 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 137.15 | 134.81 | 276.06 | 435.42 | 830.44 | 304.02 | 238.64 | 98.64 | 91.85 | 0.19 | 223.32 | 159.21 | 160.42 | 194.47 | 256.52 | 397.77 | 317.82 | 237.76 | 77.61 | 219.50 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 137.15 + — – —
= 137.15
The cash conversion cycle of Ligand Pharmaceuticals Incorporated has exhibited significant fluctuations over the analyzed period. Starting at 219.50 days on March 31, 2020, the company's cash conversion cycle decreased to 77.61 days by June 30, 2020, indicating an improvement in efficiency in converting resources to cash. However, there was a subsequent increase over the next quarters, reaching its peak at 830.44 days on December 31, 2023, suggesting potential challenges in managing cash flow and working capital.
The company then experienced a substantial reduction in the cash conversion cycle, dropping to 137.15 days by the end of December 31, 2024. This improvement may signify enhanced operational efficiency or changes in the company's working capital management strategies.
The significant fluctuations in the cash conversion cycle could point to various factors impacting the company's operations, such as inventory management, payment terms with suppliers, and collection efficiency from customers. It is essential for Ligand Pharmaceuticals to closely monitor and manage its cash conversion cycle to ensure optimal utilization of resources and maintain a healthy liquidity position.
Peer comparison
Dec 31, 2024