Ligand Pharmaceuticals Incorporated (LGND)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	52,154	-33,361	57,138	-2,985	629,302
Total assets	US$ in thousands	787,216	762,668	1,297,590	1,362,280	1,494,920
ROA		6.63%	-4.37%	4.40%	-0.22%	42.10%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $52,154K ÷ $787,216K
= 6.63%

Ligand Pharmaceuticals, Inc.'s return on assets (ROA) has demonstrated significant fluctuations over the past five years. In 2019, the company had a notably high ROA of 42.10%, indicating strong efficiency in generating profits relative to its total assets. However, this figure sharply declined to -0.22% in 2020, reflecting a period of inefficiency in asset utilization.

Subsequently, there was an improvement in ROA to 4.40% in 2021, suggesting a recovery in asset profitability. The company's ROA then experienced a substantial negative turn in 2022, dropping to -4.37%, signifying a decline in the ability to generate earnings from its assets.

In 2023, Ligand Pharmaceuticals, Inc.'s ROA rebounded to 6.63%, indicating a more positive performance in utilizing its assets to generate returns. Overall, the company's ROA has been volatile, with fluctuations reflecting varying levels of asset efficiency and profitability during the period under review.