Ligand Pharmaceuticals Incorporated (LGND)

Net profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Net income (ttm)	US$ in thousands	-4,032	45,244	39,624	93,825	49,635	16,913	30,109	26,924	-30,410	-20,844	-7,525	24,095	57,586	68,315	47,891	39,252	-2,985	-16,111	-24,661	-61,166
Revenue (ttm)	US$ in thousands	167,133	152,422	133,478	118,313	131,314	153,595	186,815	217,868	219,582	241,673	240,420	267,676	277,133	274,650	251,663	208,408	186,419	143,432	126,392	109,959
Net profit margin		-2.41%	29.68%	29.69%	79.30%	37.80%	11.01%	16.12%	12.36%	-13.85%	-8.62%	-3.13%	9.00%	20.78%	24.87%	19.03%	18.83%	-1.60%	-11.23%	-19.51%	-55.63%

December 31, 2024 calculation

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

Net profit margin is a key profitability ratio that indicates the percentage of revenue that translates into net income after all expenses have been deducted. Analyzing the trend of Ligand Pharmaceuticals Incorporated's net profit margin over multiple quarters provides insights into the company's operational efficiency and financial performance.

From March 31, 2020, to December 31, 2024, Ligand's net profit margin fluctuated significantly. The company experienced negative net profit margins in the initial quarters, indicating that expenses were exceeding revenue. However, there was a notable improvement in profitability starting from March 31, 2021, when the net profit margin turned positive.

The net profit margin continued to increase steadily from March 31, 2021, reaching its peak at 79.30% on March 31, 2024. This significant improvement suggests that Ligand Pharmaceuticals was able to effectively control its costs and enhance operational efficiency during this period.

However, there was a slight decline in the net profit margin by the end of December 31, 2024, dropping to -2.41%. This decrease may indicate a potential increase in expenses or a decline in revenue during the period.

Overall, the trend in Ligand Pharmaceuticals' net profit margin reflected a turnaround from negative profitability to strong positive margins, followed by a minor setback. Continued monitoring and analysis of this ratio will be essential to assess the company's long-term financial health and sustainability.