Ligand Pharmaceuticals Incorporated (LGND)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	11,942	3,037	103,851	37,500	807,076
Total assets	US$ in thousands	787,216	762,668	1,297,590	1,362,280	1,494,920
Operating ROA		1.52%	0.40%	8.00%	2.75%	53.99%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $11,942K ÷ $787,216K
= 1.52%

The operating return on assets (operating ROA) for Ligand Pharmaceuticals, Inc. has varied significantly over the past five years. In 2021, the company experienced a high operating ROA of 6.08%, indicating that for every dollar of assets, the company generated a return of 6.08% from its operations. This was a significant improvement from the negative operating ROA of -0.19% in 2019.

However, in the subsequent years, there was a decrease in the operating ROA, with a notable drop to 0.40% in 2022 and a further decrease to 1.25% in 2023. These lower percentages suggest that the company's profitability from its operations relative to its assets has declined compared to the high achieved in 2021.

Overall, the analysis of Ligand Pharmaceuticals, Inc.'s operating ROA indicates fluctuations in the company's ability to generate returns from its assets through its core operations over the five-year period. Monitoring and analyzing these trends can provide insights into the company's operational efficiency and profitability over time.