Ligand Pharmaceuticals Incorporated (LGND)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	22,954	45,006	19,522	47,619	71,543
Short-term investments	US$ in thousands	147,355	166,864	321,586	363,567	998,324
Total current liabilities	US$ in thousands	16,782	98,810	41,665	100,111	17,002
Cash ratio		10.15	2.14	8.19	4.11	62.93

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($22,954K + $147,355K) ÷ $16,782K
= 10.15

The cash ratio of Ligand Pharmaceuticals, Inc. has fluctuated over the past five years. The ratio was 10.38 in 2023, indicating that the company had $10.38 in cash for every $1 of current liabilities. This represents a significant improvement from the previous year, where the ratio was 2.18.

In 2021, the cash ratio was 8.30, demonstrating a strong ability to cover short-term obligations with cash assets. The ratio was slightly lower in 2020 at 4.15 but still indicated a healthy liquidity position.

The most notable outlier was in 2019, where the cash ratio was exceptionally high at 63.20. This suggests that the company had a substantial amount of cash relative to its current liabilities that year.

Overall, the trend in Ligand Pharmaceuticals' cash ratio shows fluctuations but generally reflects a solid liquidity position and the ability to meet short-term obligations with available cash resources.