Ligand Pharmaceuticals Incorporated (LGND)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 72,307 | 22,954 | 45 | 19,522 | 47,619 |
| Short-term investments | US$ in thousands | 183,858 | 147,355 | 167 | 321,586 | 363,567 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 37,112 | 16,782 | 98,810 | 41,665 | 100,111 |
| Quick ratio | 6.90 | 10.15 | 0.00 | 8.19 | 4.11 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($72,307K
+ $183,858K
+ $—K)
÷ $37,112K
= 6.90
The quick ratio of Ligand Pharmaceuticals Incorporated has shown significant fluctuations over the past five years. In December 31, 2020, the quick ratio was 4.11, indicating that the company had good short-term liquidity to cover its immediate financial obligations. This ratio improved substantially to 8.19 by December 31, 2021, suggesting a strong ability to meet short-term liabilities with its most liquid assets.
However, in December 31, 2022, the quick ratio dropped to 0.00, which raises concerns about the company's short-term liquidity position. It indicates that Ligand Pharmaceuticals may struggle to meet its current liabilities using only its quick assets. This abrupt decline in the quick ratio requires further investigation into the company's current asset composition and management of short-term obligations.
The quick ratio bounced back significantly in the following years, reaching 10.15 by December 31, 2023, and 6.90 by December 31, 2024. These improved ratios suggest that Ligand Pharmaceuticals has enhanced its ability to cover short-term obligations with its liquid assets. Overall, the company's quick ratio has exhibited volatility, highlighting the importance of closely monitoring liquidity levels to ensure financial stability.
Peer comparison
Dec 31, 2024