Ligand Pharmaceuticals Incorporated (LGND)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	700,913	597,485	821,159	709,525	767,232
ROE		7.44%	-5.58%	6.96%	-0.42%	82.02%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $52,154K ÷ $700,913K
= 7.44%

Ligand Pharmaceuticals, Inc.'s return on equity (ROE) has exhibited significant variability over the past five years. In 2019, the company achieved a notably high ROE of 82.02%, reflecting strong profitability relative to shareholder equity. However, this was followed by a substantial decline in 2020, where the ROE fell to -0.42%, indicating a period of negative returns relative to equity.

The company managed to improve its ROE in 2021, reaching 6.96%, showcasing a recovery in profitability. This positive trend continued in 2022, with an ROE of -5.58%, although still indicating a negative return. By the end of 2023, Ligand Pharmaceuticals, Inc.'s ROE stood at 7.44%, suggesting a moderate return on equity, albeit with room for further enhancement.

Overall, the fluctuation in ROE levels indicates varying levels of efficiency in generating profits from the shareholders' investments over the years, highlighting the importance of assessing the company's financial performance and strategic direction to enhance shareholder value.