Ligand Pharmaceuticals Incorporated (LGND)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	22,954	19,275	28,445	88,728	45,006	4,116	5,280	14,993	19,522	23,430	21,863	31,853	47,619	457	115,156	117,527	71,543	225,302	273,047	105,113
Short-term investments	US$ in thousands	147,355	171,227	190,596	193,937	166,864	117,291	142,655	189,006	321,586	299,781	279,972	307,354	363,567	338,154	694,724	621,284	998,324	874,383	1,059,000	1,323,580
Total current liabilities	US$ in thousands	16,782	15,727	29,388	98,929	98,810	135,241	167,853	42,578	41,665	36,297	52,497	95,805	100,111	42,300	29,264	20,438	17,002	35,695	108,985	186,777
Cash ratio		10.15	12.11	7.45	2.86	2.14	0.90	0.88	4.79	8.19	8.90	5.75	3.54	4.11	8.00	27.67	36.15	62.93	30.81	12.22	7.65

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 shown fluctuations over the past eight quarters. The ratio was highest in Q3 2023 at 12.25, indicating that the company had $12.25 in cash and cash equivalents for every $1 of current liabilities during that period. This high cash ratio suggests that the company had a strong ability to cover its short-term obligations with its available cash reserves.

In contrast, the lowest cash ratio was recorded in Q2 2022 at 0.93, signaling a relatively low level of liquidity and a potential difficulty in meeting its short-term financial obligations with available cash. However, there was a significant improvement in liquidity as the ratio increased to 10.38 in Q4 2023.

The fluctuations in the cash ratio over the eight quarters could be indicative of changes in the company's cash position, management of working capital, or overall financial health. It is essential for investors and stakeholders to monitor these trends to evaluate the company's ability to manage its liquidity effectively and meet its short-term obligations.