Ligand Pharmaceuticals Incorporated (LGND)

Current ratio

		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
Total current assets	US$ in thousands	331,559	309,388	312,259	368,913	237,429	257,761	276,711	328,195	263,601	220	243,784	276,066	464,751	432,082	410,901	437,428	500,559	857,741	863,624	830,727
Total current liabilities	US$ in thousands	37,112	24,772	18,565	17,818	16,782	18,866	29,388	98,929	98,810	135	167,853	42,578	41,665	36,297	52,497	95,805	100,111	42,300	31,370	20,438
Current ratio		8.93	12.49	16.82	20.70	14.15	13.66	9.42	3.32	2.67	1.63	1.45	6.48	11.15	11.90	7.83	4.57	5.00	20.28	27.53	40.65

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, as indicated in the financial data provided, has shown fluctuations over the time period from March 31, 2020, to December 31, 2024.

The current ratio is a measure of a company's ability to meet its short-term obligations with its current assets. A ratio above 1 indicates that the company has more current assets than current liabilities, which is generally seen as a positive sign.

In March 2020, the current ratio was exceptionally high at 40.65, indicating a strong ability to cover short-term obligations. However, this ratio decreased significantly over the subsequent quarters, reaching the lowest point of 1.45 by June 30, 2022. This sharp decline could raise concerns about the company's liquidity and ability to meet its immediate financial obligations.

Subsequently, there was an improvement in the current ratio, reaching 20.70 by March 31, 2024. This increase suggests that the company's current assets had grown relative to its current liabilities, enhancing its short-term financial position.

It is important to note that while a high current ratio indicates a good liquidity position, an extremely high ratio may imply that the company is not efficiently utilizing its current assets. Conversely, a low current ratio may signal potential liquidity issues.

Overall, the trend in Ligand Pharmaceuticals' current ratio over the period indicates fluctuations in the company's short-term liquidity position, with periods of strength and weakness. Investors and analysts may want to monitor this ratio closely to assess the company's ability to manage its short-term financial obligations effectively.