Ligand Pharmaceuticals Incorporated (LGND)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 36,223 | 41,149 | 74,178 | 34,717 | -1,717 |
| Revenue | US$ in thousands | 133,379 | 199,338 | 288,204 | 176,413 | 85,278 |
| Gross profit margin | 27.16% | 20.64% | 25.74% | 19.68% | -2.01% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $36,223K ÷ $133,379K
= 27.16%
The gross profit margin of Ligand Pharmaceuticals, Inc. has shown fluctuations over the past five years. In 2023, the gross profit margin significantly improved to 91.99% from 73.08% in 2022, indicating the company was able to generate more revenue after accounting for the cost of goods sold. This impressive increase suggests effective cost management or increased pricing power.
In the preceding years, the gross profit margin was relatively stable, at 77.56% in 2021, 83.68% in 2020, and 90.57% in 2019. These consistent levels indicate the company had been maintaining a healthy balance between its revenue and cost of goods sold.
Overall, the upward trend in the gross profit margin, particularly in 2023, reflects positively on Ligand Pharmaceuticals, Inc.'s ability to maximize profitability from its core operations by controlling production costs or potentially commanding higher prices for its products. However, further analysis, in conjunction with other financial metrics, would be necessary to provide a complete assessment of the company's financial performance and operational efficiency.
Peer comparison
Dec 31, 2023