Ligand Pharmaceuticals Incorporated (LGND)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-4,032	52,154	-5,219	57,138	-2,985
Revenue	US$ in thousands	167,133	131,314	196,245	277,133	186,419
Net profit margin		-2.41%	39.72%	-2.66%	20.62%	-1.60%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $-4,032K ÷ $167,133K
= -2.41%

The net profit margin of Ligand Pharmaceuticals Incorporated has exhibited significant fluctuations over the five-year period from December 31, 2020, to December 31, 2024.

In December 2020, the net profit margin was negative at -1.60%, indicating that the company experienced a loss in profitability relative to its revenue. However, there was a notable turnaround in December 2021, with the net profit margin surging to 20.62%, reflecting a substantial improvement in the company's ability to generate profits from its operations.

Unfortunately, this positive trend reversed in December 2022 when the net profit margin fell to -2.66%, indicating a return to a loss-making position. The company then experienced a remarkable recovery in December 2023, achieving a net profit margin of 39.72%, signaling a significant increase in profitability compared to the previous year.

Nonetheless, this positive momentum was short-lived as evidenced by the decline in the net profit margin to -2.41% in December 2024, indicating a return to a loss-making position.

Overall, the fluctuating net profit margin of Ligand Pharmaceuticals Incorporated points to varying levels of profitability throughout the five-year period, highlighting the need for the company to focus on improving operational efficiency and cost management to sustain consistent profitability in the future.