Ligand Pharmaceuticals Incorporated (LGND)

Return on equity (ROE)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	52,154	16,481	27,158	23,973	-33,361	-21,293	-7,974	23,646	57,138	68,316	47,892	39,253	-2,985	-16,111	-24,661	-61,166	629,302	594,185	676,798	764,377
Total stockholders’ equity	US$ in thousands	700,913	667,896	664,892	646,317	597,485	816,298	802,365	793,192	821,159	812,066	786,517	745,840	709,525	697,824	695,003	661,896	767,232	850,581	1,041,450	1,079,970
ROE		7.44%	2.47%	4.08%	3.71%	-5.58%	-2.61%	-0.99%	2.98%	6.96%	8.41%	6.09%	5.26%	-0.42%	-2.31%	-3.55%	-9.24%	82.02%	69.86%	64.99%	70.78%

December 31, 2023 calculation

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

In analyzing Ligand Pharmaceuticals, Inc.'s return on equity (ROE) over the past eight quarters, we observe fluctuations in performance. The ROE ranged from as low as -5.58% in Q4 2022 to a peak of 7.44% in Q4 2023. The positive ROE in the most recent quarters indicates that the company is generating a profit relative to its shareholders' equity.

The increase in ROE from negative figures in 2022 to positive figures in 2023 suggests that Ligand Pharmaceuticals has made improvements in utilizing its equity to generate profits. However, the variability in ROE over the quarters warrants further investigation into the factors driving these fluctuations. It is important for stakeholders to monitor the trend in ROE to assess the company's ability to efficiently generate returns for its shareholders.