Ligand Pharmaceuticals Incorporated (LGND)

Quick 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
Cash	US$ in thousands	72,307	63,619	18,139	50,093	22,954	19,275	219,041	282,665	45	121	5,280	14,993	19,522	23,430	21,863	31,853	47,619	456,916	809,880	738,811
Short-term investments	US$ in thousands	183,858	156,024	208,793	260,500	147,355	171,227	190,596	193,937	167	117	142,655	189,006	321,586	299,781	279,972	307,354	363,567	338,154	694,724	32,879
Receivables	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Quick ratio		6.90	8.87	12.22	17.43	10.15	10.10	13.94	4.82	0.00	1.76	0.88	4.79	8.19	8.90	5.75	3.54	4.11	18.80	47.96	37.76

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 fluctuations over the periods presented in the data. It is important to note that the quick ratio provides insight into the company's ability to meet its short-term obligations using its most liquid assets.

Starting from March 31, 2020, the quick ratio was notably high at 37.76, indicating a strong ability to cover short-term liabilities with its liquid assets. This trend continued to June 30, 2020, where the quick ratio further increased to 47.96, reflecting a strong liquidity position.

However, there was a significant decline in the quick ratio to 0.00 as of December 31, 2022. This suggests that the company may face challenges in meeting its short-term obligations using its quick assets alone. It is important to investigate the reasons behind this sharp decrease in liquidity.

Subsequently, the quick ratio improved to 17.43 as of March 31, 2024, indicating a recovery in the company's ability to cover short-term obligations. This improvement was followed by fluctuations in the quick ratio over the following periods.

Overall, the quick ratio of Ligand Pharmaceuticals Incorporated has displayed fluctuations, emphasizing the importance of closely monitoring the company's liquidity position to ensure its ability to meet short-term obligations efficiently.