Ligand Pharmaceuticals Incorporated (LGND)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	-4,032	45,244	39,624	93,825	49,635	16,913	30,109	26,924	-30,410	-20,844	-7,525	24,095	57,586	68,315	47,891	39,252	-2,985	-16,111	-24,661	-61,166
Total stockholders’ equity	US$ in thousands	830,439	841,178	775,198	806,521	700,913	665,402	664,892	646,317	597,485	816	802,365	793,192	821,629	812,066	786,517	745,840	709,525	697,824	695,003	661,896
ROE		-0.49%	5.38%	5.11%	11.63%	7.08%	2.54%	4.53%	4.17%	-5.09%	-2,554.41%	-0.94%	3.04%	7.01%	8.41%	6.09%	5.26%	-0.42%	-2.31%	-3.55%	-9.24%

December 31, 2024 calculation

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

Ligand Pharmaceuticals Incorporated's return on equity (ROE) has demonstrated significant volatility over the period analyzed. The ROE was negative in the first half of 2020, indicating that the company was generating a net loss relative to its equity during that time.

However, starting from the first quarter of 2021, Ligand's ROE began to improve gradually, entering positive territory and peaking at 11.63% in the first quarter of 2024. This improvement suggests that the company started generating more profits relative to its shareholders' equity, reflecting increased efficiency in utilizing equity to generate earnings.

Despite the positive trend observed in the latter part of the period, there were fluctuations in ROE values, with some quarters showing a decline or returning to negative values. Notably, there was a significant outlier in the third quarter of 2022, where the ROE plummeted to -2,554.41%, which could be attributed to exceptional circumstances or one-time events affecting the company's financial performance.

Overall, Ligand Pharmaceuticals Incorporated's ROE showed mixed performance, with periods of improvement and volatility. The company should continue to focus on sustaining positive ROE to enhance shareholder value and signal effective management of its financial resources.