Ligand Pharmaceuticals Incorporated (LGND)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	52,154	-33,361	57,138	-2,985	629,302
Revenue	US$ in thousands	133,379	199,338	288,204	176,413	85,278
Net profit margin		39.10%	-16.74%	19.83%	-1.69%	737.94%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $52,154K ÷ $133,379K
= 39.10%

Ligand Pharmaceuticals, Inc.'s net profit margin has exhibited significant variability over the past five years. The company reported a net profit margin of 39.72% in 2023, a substantial improvement from the negative net profit margin of -17.00% in 2022. This positive trend indicates enhanced profitability and efficiency in managing costs relative to revenue generated in the most recent year.

In 2021, Ligand Pharmaceuticals, Inc. reported a net profit margin of 20.62%, signaling a relatively healthy profitability level compared to the negative net profit margin of -1.60% in 2020. However, the significant spike to an exceptionally high net profit margin of 523.19% in 2019 raises questions about the consistency and sustainability of the company's earnings performance in that particular year.

Overall, while Ligand Pharmaceuticals, Inc. has demonstrated a recent rebound in profitability reflected in the improved net profit margins, analysts and investors may want to evaluate the underlying drivers of such fluctuations and assess the company's ability to maintain a stable and healthy net profit margin in the future.