Ligand Pharmaceuticals Incorporated (LGND)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	237,429	263,601	464,751	500,559	1,123,640
Total current liabilities	US$ in thousands	16,782	98,810	41,665	100,111	17,002
Current ratio		14.15	2.67	11.15	5.00	66.09

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $237,429K ÷ $16,782K
= 14.15

The current ratio of Ligand Pharmaceuticals, Inc. has shown significant fluctuations over the past five years. In 2023, the current ratio stands at a high of 14.15, indicating a substantial increase compared to the previous year. This suggests that the company's current assets are 14.15 times greater than its current liabilities, signaling a strong liquidity position.

Comparing this to the ratios from the preceding years, there is a notable trend of fluctuations. In 2022, the current ratio was 2.67, indicating a lower liquidity position compared to 2023. However, in 2021, there was a considerable improvement in liquidity with a current ratio of 11.15, showcasing the ability of the company to meet its short-term obligations more comfortably.

The current ratio in 2020 was 5.00, which was lower than 2021 but still indicated an adequate liquidity position. Notably, in 2019, the company had a remarkably high current ratio of 66.09, which may suggest an excess of current assets relative to current liabilities.

Overall, the recent significant increase in the current ratio for Ligand Pharmaceuticals, Inc. in 2023 reflects a strengthened liquidity position, which can be perceived as a positive indicator for the company's ability to meet short-term financial obligations.