Ligand Pharmaceuticals Incorporated (LGND)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	156,059	96,265	143,418	214,957	156,000
Revenue	US$ in thousands	167,133	131,314	196,245	277,133	186,419
Gross profit margin		93.37%	73.31%	73.08%	77.56%	83.68%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $156,059K ÷ $167,133K
= 93.37%

Ligand Pharmaceuticals Incorporated's gross profit margin has exhibited fluctuations over the past five years. At the end of December 31, 2020, the gross profit margin stood at 83.68%, indicating a strong profitability from its core operations. However, there was a decline in the gross profit margin to 77.56% by the end of December 31, 2021, potentially suggesting challenges in managing costs or pricing pressures.

Subsequently, by the end of December 31, 2022, the gross profit margin decreased further to 73.08%, signaling a continued strain on the company's ability to generate profits from its primary activities. However, there was a slight improvement in the margin by the end of December 31, 2023, reaching 73.31%.

Notably, by the end of December 31, 2024, Ligand Pharmaceuticals Incorporated experienced a significant recovery in its gross profit margin, soaring to 93.37%. This remarkable increase may indicate successful strategic decisions or operational efficiencies that have boosted the company's profitability.

In conclusion, while there have been fluctuations in Ligand Pharmaceuticals Incorporated's gross profit margin over the years, the notable rebound in 2024 reflects a positive turn in the company's ability to generate profits from its core operations. Monitoring future trends in the gross profit margin will be essential to assess the company's financial performance and sustainability.