Ligand Pharmaceuticals Incorporated (LGND)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,555 | 64,316 | 11,013 | 91,824 | 41,086 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 830,439 | 700,913 | 597,485 | 821,629 | 709,525 |
| Return on total capital | 0.67% | 9.18% | 1.84% | 11.18% | 5.79% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $5,555K ÷ ($—K + $830,439K)
= 0.67%
Based on the provided data, Ligand Pharmaceuticals Incorporated's return on total capital has shown fluctuations over the past five years. The return on total capital increased from 5.79% as of December 31, 2020, to 11.18% as of December 31, 2021, indicating an improvement in the company's efficiency in generating returns from its total capital.
However, there was a significant decline in the return on total capital in the subsequent year, dropping to 1.84% as of December 31, 2022. This decrease suggests a potential operational or financial challenge during that period.
The return on total capital rebounded in the following year, reaching 9.18% as of December 31, 2023, showing a recovery in the company's ability to generate returns from the total capital employed.
However, the return on total capital decreased sharply to 0.67% as of December 31, 2024, indicating a significant decline in the company's efficiency in utilizing its total capital to generate profits.
Overall, the fluctuation in Ligand Pharmaceuticals Incorporated's return on total capital over the five-year period suggests variability in the company's operational performance and financial management, warranting further investigation into the factors driving these fluctuations.
Peer comparison
Dec 31, 2024