Ligand Pharmaceuticals Incorporated (LGND)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	830,439	700,913	597,485	821,629	709,525
ROE		-0.49%	7.44%	-0.87%	6.95%	-0.42%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-4,032K ÷ $830,439K
= -0.49%

Ligand Pharmaceuticals Incorporated's return on equity (ROE) has shown fluctuations over the past five years. In 2020, the ROE was negative at -0.42%, indicating that the company had a net loss relative to its equity.

However, there was a notable improvement in 2021, with the ROE increasing to 6.95%, suggesting that the company managed to generate a positive return on its equity compared to the previous year.

In 2022, there was a decline as the ROE dropped to -0.87%, indicating a return to negative territory.

The following year, in 2023, the ROE rebounded significantly to 7.44%, surpassing the levels seen in both 2021 and 2020. This improvement may signify enhanced profitability or more efficient use of the company's equity.

Nonetheless, in 2024, there was another slight decrease with the ROE dipping to -0.49%, suggesting a potential decline in profitability or less effective utilization of equity.

Overall, Ligand Pharmaceuticals Incorporated's ROE has displayed variability, with some years showing positive returns while others have fallen into negative territory. This trend underscores the importance of closely monitoring the company's financial performance and profitability metrics.