Ligand Pharmaceuticals Incorporated (LGND)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	2,518	63,660	36,011	47,298	-10,538
Revenue	US$ in thousands	167,133	131,314	196,245	277,133	186,419
Pretax margin		1.51%	48.48%	18.35%	17.07%	-5.65%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $2,518K ÷ $167,133K
= 1.51%

The pretax margin of Ligand Pharmaceuticals Incorporated has shown significant fluctuations over the past five years. In 2020, the pretax margin was negative at -5.65%, indicating that the company's expenses exceeded its revenue before accounting for taxes. However, there was a notable improvement in 2021, with the pretax margin increasing to 17.07%, reflecting better cost management and profitability.

In 2022, the pretax margin further improved to 18.35%, indicating the company's ability to generate more income compared to its costs before tax deductions. The most significant leap occurred in 2023, where the pretax margin surged to 48.48%, signaling strong operational efficiency and potential growth opportunities.

However, there was a notable decline in 2024, with the pretax margin dropping to 1.51%, suggesting potential challenges in maintaining profitability or controlling costs during that period. Overall, while there have been fluctuations in Ligand Pharmaceuticals' pretax margin, the company has demonstrated both resilience and the potential for significant profitability, as seen in the substantial improvement in 2023.