Ligand Pharmaceuticals Incorporated (LGND)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	3,885	10,164	6,899	-2,475	8,742	-7,999	-6,318	-2,895	-23,708	5,781	19,928	64,227	75,550	77,370	65,411	26,772	25,845	4,456	-4,449	-15,679
Total assets	US$ in thousands	941,774	954,866	866,405	913,869	833,064	769,210	758,105	811,076	762,668	1,051	1,076,290	1,105,180	1,301,380	1,273,660	1,256,280	1,295,120	1,362,280	1,247,450	1,242,940	1,185,920
Operating ROA		0.41%	1.06%	0.80%	-0.27%	1.05%	-1.04%	-0.83%	-0.36%	-3.11%	550.05%	1.85%	5.81%	5.81%	6.07%	5.21%	2.07%	1.90%	0.36%	-0.36%	-1.32%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $3,885K ÷ $941,774K
= 0.41%

Operating return on assets (operating ROA) is a financial metric that evaluates a company's ability to generate operating profit from its assets. Looking at the data provided for Ligand Pharmaceuticals Incorporated, we observe fluctuations in the operating ROA over the quarters from March 31, 2020, to December 31, 2024.

The operating ROA started from negative values in March and June 2020, indicating that the company was not efficiently utilizing its assets to generate operating income. However, there was an improvement as the operating ROA turned positive in September 2020, and saw a significant increase in December 2020 and March 2021, reaching levels above 2%.

The trend continued to be positive into June and September 2021, with operating ROA values exceeding 5%, indicating efficient asset management and strong operating profitability. However, by December 2021, the operating ROA decreased slightly to 5.81%, remaining at the same level in March and June 2022.

A significant anomaly appeared in September 2022, with a substantial spike in operating ROA to 550.05%, which could be considered an outlier or potentially influenced by extraordinary events.

Subsequently, the operating ROA dropped sharply into negative territory in December 2022 and remained negative in the following quarters, indicating a decline in the company's ability to generate operating income relative to its assets.

The most recent data available for December 31, 2024, shows a slight recovery with an operating ROA of 0.41%, suggesting a potential turnaround in the company's operating efficiency.

Overall, while there have been fluctuations in Ligand Pharmaceuticals Incorporated's operating ROA over the period analyzed, with both positive and negative trends, it is essential for stakeholders to monitor the company's asset management and operational performance closely to assess its long-term financial health and sustainability.