Ligand Pharmaceuticals Incorporated (LGND)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 93.37% | 73.31% | 73.08% | 77.56% | 83.68% |
| Operating profit margin | -13.53% | 9.09% | -13.00% | 28.47% | 4.59% |
| Pretax margin | 1.51% | 48.48% | 18.35% | 17.07% | -5.65% |
| Net profit margin | -2.41% | 39.72% | -2.66% | 20.62% | -1.60% |
The gross profit margin for Ligand Pharmaceuticals Incorporated has shown a decreasing trend from 83.68% in 2020 to 73.31% in 2023, before significantly increasing to 93.37% in 2024. This indicates fluctuations in the company's ability to generate profits from its core business operations.
The operating profit margin initially stood at a low 4.59% in 2020, before experiencing a substantial improvement to 28.47% in 2021, only to drop to -13.00% in 2022. The margin recovered slightly in 2023 but fell again to -13.53% in 2024, suggesting operational challenges the company faced during these periods.
The pretax margin for Ligand Pharmaceuticals fluctuated over the years, starting at -5.65% in 2020, then increasing to 48.48% in 2023, before decreasing to 1.51% in 2024. This indicates significant volatility in the company's profitability before ultimately returning to a lower level in 2024.
The net profit margin for Ligand Pharmaceuticals showed a negative figure in 2020, improved to 20.62% in 2021, only to drop to -2.66% in 2022. The margin then increased significantly to 39.72% in 2023 but decreased again to -2.41% in 2024, reflecting inconsistency in the company's ability to convert revenues into profits.
Overall, the profitability ratios of Ligand Pharmaceuticals Incorporated exhibit a mix of positive and negative trends, indicating fluctuating performance and highlighting the need for the company to focus on improving operational efficiency and cost management to enhance profitability over time.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -2.40% | 1.52% | -3.34% | 6.06% | 0.63% |
| Return on assets (ROA) | -0.43% | 6.63% | -0.68% | 4.39% | -0.22% |
| Return on total capital | 0.67% | 9.18% | 1.84% | 11.18% | 5.79% |
| Return on equity (ROE) | -0.49% | 7.44% | -0.87% | 6.95% | -0.42% |
Ligand Pharmaceuticals Incorporated's profitability ratios show fluctuations over the years. The Operating Return on Assets (Operating ROA) increased from 0.63% in 2020 to 6.06% in 2021 but deteriorated to -3.34% in 2022, recovering slightly to 1.52% in 2023. However, by the end of 2024, it decreased to -2.40%.
Similarly, the Return on Assets (ROA) was negative at -0.22% in 2020, improved to 4.39% in 2021, turned negative again at -0.68% in 2022, then displayed a significant increase to 6.63% in 2023, but declined to -0.43% in 2024.
The Return on Total Capital showed a positive trend, starting at 5.79% in 2020, increasing to 11.18% in 2021, dropping to 1.84% in 2022, recovering to 9.18% in 2023, and reaching 0.67% by the end of 2024.
Lastly, the Return on Equity (ROE) began at -0.42% in 2020, climbed to 6.95% in 2021, then fell to -0.87% in 2022, rose to 7.44% in 2023, and ended at -0.49% in 2024. These ratios indicate the company's varying levels of profitability and efficiency in generating returns for both shareholders and capital providers.