Ligand Pharmaceuticals Incorporated (LGND)

Return on total capital

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 62,651 66,852 82,440 74,590 9,668 -8,631 7,622 50,201 72,608 79,233 54,192 50,340 16,877 7,781 2,246 -41,102 832,384 795,079 896,383 1,014,432
Long-term debt US$ in thousands — — — — 0 0 0 176,540 320,717 316,889 315,318 352,313 442,293 454,973 449,672 444,432 638,959 631,533 624,209 616,987
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
Return on total capital 8.94% 10.01% 12.40% 11.54% 1.62% -1.06% 0.95% 5.18% 6.36% 7.02% 4.92% 4.58% 1.47% 0.67% 0.20% -3.72% 59.19% 53.64% 53.82% 59.78%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $62,651K ÷ ($—K + $700,913K)
= 8.94%

Ligand Pharmaceuticals, Inc.'s return on total capital has shown fluctuations over the past eight quarters. The company experienced a notable increase in return on total capital in Q2 and Q3 of 2023, reaching 12.53% and 10.69%, respectively. Prior to that, in Q1 2023, the return on total capital was 10.92%. In contrast, the lowest values were recorded in Q2 and Q3 of 2022, with -0.25% and -2.27%, respectively. The most recent return on total capital in Q4 2023 was 1.40%, indicating a decrease compared to the prior quarter. Overall, the return on total capital for Ligand Pharmaceuticals, Inc. has shown variability, with both positive and negative trends during the specified period.