Ligand Pharmaceuticals Incorporated (LGND)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	-22,606	11,942	-25,503	78,895	8,550
Revenue	US$ in thousands	167,133	131,314	196,245	277,133	186,419
Operating profit margin		-13.53%	9.09%	-13.00%	28.47%	4.59%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $-22,606K ÷ $167,133K
= -13.53%

The operating profit margin of Ligand Pharmaceuticals Incorporated has shown significant fluctuations over the past few years.

In 2020, the operating profit margin was 4.59%, indicating that the company was able to generate a modest profit relative to its operating revenue. This suggests a relatively stable operational performance during that period.

However, in 2021, there was a substantial increase in the operating profit margin to 28.47%, signifying a significant improvement in the company's profitability. This surge may be attributed to effective cost management, revenue growth, or a combination of both.

The following year, in 2022, the operating profit margin turned negative at -13.00%, implying that the company's operational costs exceeded its operating income, resulting in a loss at the operating level. This substantial decline could be concerning and may raise questions about the company's cost structure or revenue generation during that period.

By 2023, there was a recovery in the operating profit margin to 9.09%, indicating a return to profitability at the operating level. This improvement might have been driven by strategic initiatives, cost-saving measures, or an increase in revenue.

However, in 2024, the operating profit margin fell sharply to -13.53%, once again indicating a negative profitability trend. This decline may warrant further investigation into the company's financial performance, cost controls, and revenue streams during that period.

Overall, the fluctuating operating profit margins of Ligand Pharmaceuticals Incorporated suggest varying levels of operational efficiency and financial performance over the analyzed years, highlighting the importance of continuous monitoring and strategic management of the company's operations.