Ligand Pharmaceuticals Incorporated (LGND)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 14.15 | 16.15 | 9.42 | 3.32 | 2.67 | 1.63 | 1.45 | 6.48 | 11.15 | 11.90 | 7.83 | 4.57 | 5.00 | 20.28 | 29.51 | 40.65 | 66.09 | 33.14 | 13.23 | 8.39 |
| Quick ratio | 12.49 | 14.40 | 8.41 | 3.15 | 2.50 | 1.39 | 1.26 | 5.77 | 10.39 | 10.85 | 6.95 | 4.12 | 4.70 | 8.78 | 29.20 | 38.44 | 65.38 | 31.42 | 12.41 | 7.79 |
| 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 |
Ligand Pharmaceuticals, Inc. has demonstrated strong liquidity positions in terms of its current, quick, and cash ratios over the past eight quarters. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has shown a significant improvement over the quarters, with a peak at 16.15 in Q3 2023. This indicates that the company has more than enough current assets to meet its short-term obligations.
Similarly, the quick ratio, which excludes inventory from current assets in the calculation, has also depicted a positive trend, reaching 14.54 in Q3 2023. This suggests that Ligand Pharmaceuticals has a strong ability to meet its short-term obligations with its most liquid assets, excluding inventory.
Furthermore, the cash ratio, reflecting the company's ability to pay off current liabilities using only its cash and cash equivalents, has consistently shown solid performance, with a high of 12.25 in Q3 2023. This indicates that Ligand Pharmaceuticals has a sufficient amount of cash on hand to cover its short-term liabilities, which is crucial for financial stability.
Overall, the liquidity ratios of Ligand Pharmaceuticals, Inc. portray a healthy financial position and indicate the company's capability to meet its short-term obligations efficiently across the quarters analyzed.
Additional liquidity measure
| 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 conversion cycle | days | 165.33 | 150.25 | 98.88 | 65.96 | 77.95 | 124.87 | 119.90 | 102.78 | 169.88 | 134.55 | 129.96 | 173.45 | 188.31 | 108.39 | 148.46 | 218.50 | 183.13 | 91.71 | 89.98 | 87.17 |
The cash conversion cycle for Ligand Pharmaceuticals, Inc. has shown fluctuations over the past eight quarters.
In Q4 2023, the cash conversion cycle increased significantly to 857.26 days from 375.27 days in Q3 2023, indicating a prolonged period for the company to convert its investments in inventory and other resources into cash receipts from sales.
The peak in the cash conversion cycle in Q4 2023 could be a result of extended payment terms to suppliers, slow inventory turnover, or delays in collecting receivables from customers.
In contrast, in Q1 2023, the cash conversion cycle was at its lowest at 110.21 days, suggesting a more efficient cash management process during that period.
Overall, Ligand Pharmaceuticals, Inc. may need to focus on optimizing its inventory management, payment terms with suppliers, and accounts receivable collection process to shorten its cash conversion cycle and improve its working capital efficiency.