Ligand Pharmaceuticals Incorporated (LGND)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	61,995	7,869	52,990	-8,291	796,639
Revenue	US$ in thousands	133,379	199,338	288,204	176,413	85,278
Pretax margin		46.48%	3.95%	18.39%	-4.70%	934.17%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $61,995K ÷ $133,379K
= 46.48%

The pretax margin of Ligand Pharmaceuticals, Inc. has shown significant fluctuations over the past five years. In 2023, the pretax margin increased substantially to 48.48%, showcasing strong profitability before accounting for taxes. This marked improvement from the previous year's 18.35% indicates enhanced operational efficiency and cost management in 2023.

In 2022 and 2021, the pretax margins were relatively stable at 18.35% and 17.07% respectively, reflecting consistent profitability levels during those years. However, the company reported a negative pretax margin of -5.65% in 2020, suggesting a loss before taxes due to operational challenges or unusual expenses during that period.

The most notable deviation in the pretax margin occurred in 2019 when it soared to an exceptionally high 662.31%. This unusual figure could be attributed to extraordinary gains, one-time events, or accounting anomalies, which significantly inflated the profitability metric for that year.

Overall, the pretax margin trend indicates that Ligand Pharmaceuticals, Inc. has seen fluctuating levels of profitability in recent years, with 2023 standing out as a particularly strong year in terms of pre-tax profitability. It is essential for investors and stakeholders to consider the underlying factors behind these fluctuations when assessing the company's financial performance.