Ligand Pharmaceuticals Incorporated (LGND)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	331,559	237,429	263,601	464,751	500,559
Total current liabilities	US$ in thousands	37,112	16,782	98,810	41,665	100,111
Current ratio		8.93	14.15	2.67	11.15	5.00

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $331,559K ÷ $37,112K
= 8.93

The current ratio of Ligand Pharmaceuticals Incorporated has shown considerable fluctuations over the years. As of December 31, 2020, the current ratio stood at 5.00, indicating that the company had $5 in current assets for every $1 in current liabilities. By December 31, 2021, the current ratio had significantly improved to 11.15, reflecting a strong ability to meet short-term obligations.

However, there was a notable drop in the current ratio by December 31, 2022, to 2.67, suggesting a potential strain on the company's liquidity position. The ratio then surged to 14.15 by December 31, 2023, signaling a robust financial position with ample current assets to cover immediate liabilities.

As of December 31, 2024, the current ratio decreased to 8.93, indicating a slight decline in liquidity compared to the previous year. Overall, the fluctuating trend of the current ratio for Ligand Pharmaceuticals Incorporated highlights varying levels of liquidity and ability to fulfill short-term financial obligations across the years.