Ligand Pharmaceuticals Incorporated (LGND)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	2,518	58,815	49,810	118,371	60,460	67,503	83,704	79,897	4,221	-26,945	-12,543	21,394	47,298	57,694	30,823	25,641	-10,538	-22,083	-30,342	-76,489
Revenue (ttm)	US$ in thousands	167,133	152,422	133,478	118,313	131,314	153,595	186,815	217,868	219,582	241,673	240,420	267,676	277,133	274,650	251,663	208,408	186,419	143,432	126,392	109,959
Pretax margin		1.51%	38.59%	37.32%	100.05%	46.04%	43.95%	44.81%	36.67%	1.92%	-11.15%	-5.22%	7.99%	17.07%	21.01%	12.25%	12.30%	-5.65%	-15.40%	-24.01%	-69.56%

December 31, 2024 calculation

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

The pretax margin of Ligand Pharmaceuticals Incorporated has shown fluctuations over the period analyzed. The company experienced significant negative margins in the earlier quarters of the data, with margins as low as -69.56% in March 2020. However, there was a gradual improvement in profitability, with the pretax margin turning positive in March 2021. The trend continued positively until December 2021, with margins ranging from 12.25% to 21.01%.

In the next few quarters, Ligand Pharmaceuticals saw some variability in pretax margins, with percentages fluctuating between positive and negative values. The pretax margin reached its peak in March 2024 at 100.05%, indicating a substantial increase in profitability. However, there was a notable decrease in the margin in the following quarter, dropping to 37.32%. The company managed to maintain a relatively stable pretax margin around the range of 37% to 46% in the subsequent quarters up to December 2024.

Overall, the trend in the pretax margin of Ligand Pharmaceuticals Incorporated reflects a mix of challenges and improvements in the company's profitability over the analyzed period. It is essential for investors and stakeholders to monitor these trends closely to assess the company's financial performance and management effectiveness.