Ligand Pharmaceuticals Incorporated (LGND)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -4,032 | 52,154 | -5,219 | 57,138 | -2,985 |
| Total assets | US$ in thousands | 941,774 | 787,216 | 762,668 | 1,301,380 | 1,362,280 |
| ROA | -0.43% | 6.63% | -0.68% | 4.39% | -0.22% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $-4,032K ÷ $941,774K
= -0.43%
Ligand Pharmaceuticals Incorporated's Return on Assets (ROA) has exhibited fluctuating performance over the past five years.
In 2020, the company reported a negative ROA of -0.22%, indicating that it faced challenges in generating profits from its assets. However, by the end of 2021, Ligand Pharmaceuticals showed a significant improvement with an ROA of 4.39%, signaling an increase in efficiency in utilizing its assets to generate earnings.
The following year, in 2022, the ROA dropped to -0.68%, indicating a decline in the company's ability to generate profits relative to its asset base. This negative trend was reversed in 2023, as Ligand Pharmaceuticals recorded a notably higher ROA of 6.63%, showcasing a substantial improvement in asset utilization and profitability.
Nevertheless, in 2024, the company experienced a slight decrease in its ROA to -0.43%, suggesting a dip in its profitability relative to the size of its asset base.
Overall, Ligand Pharmaceuticals' ROA performance has been marked by fluctuations, with notable improvements in certain years and declines in others. It is essential for the company to focus on sustaining and enhancing its profitability relative to its asset base to ensure long-term financial success.
Peer comparison
Dec 31, 2024