Ligand Pharmaceuticals Incorporated (LGND)

Operating profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	11,942	-4,799	4,464	15,109	3,037	60,826	64,191	101,268	103,850	89,025	77,066	38,427	37,500	4,456	-4,449	-15,679	807,076	850,404	878,924	953,229
Revenue (ttm)	US$ in thousands	170,010	192,291	223,059	237,358	219,555	225,577	224,017	280,928	278,971	292,557	263,940	185,255	166,048	123,061	103,297	84,365	93,671	117,133	135,781	196,095
Operating profit margin		7.02%	-2.50%	2.00%	6.37%	1.38%	26.96%	28.65%	36.05%	37.23%	30.43%	29.20%	20.74%	22.58%	3.62%	-4.31%	-18.58%	861.61%	726.02%	647.31%	486.11%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $11,942K ÷ $170,010K
= 7.02%

Ligand Pharmaceuticals, Inc.'s operating profit margin has shown fluctuating trends over the past eight quarters. In Q4 2023, the operating profit margin was 7.48%, representing a decrease from the previous quarter's level of 19.47% in Q3 2023. This significant decline suggests a potential decrease in the company's profitability or cost management efficiency during this period.

Comparing the current operating profit margin to the same quarter in the previous year, there has been notable improvement from Q4 2022, where the operating profit margin was much lower at 1.55%. This indicates that the company has made considerable progress in enhancing its operational efficiency and profitability year-over-year.

Looking at the historical data, the operating profit margin reached its peak in Q2 2022 at 24.24% and has since experienced a downward trend. This could signify various factors affecting the company's profitability, such as changes in revenue, operating expenses, or pricing strategies.

Overall, a thorough analysis of Ligand Pharmaceuticals, Inc.'s operating profit margin suggests the need for further investigation into the underlying reasons for the recent decline and a closer monitoring of the company's financial performance to ensure sustained profitability in the future.