Ligand Pharmaceuticals Incorporated (LGND)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -105,302 | -49,757 | -56,049 | 11,528 | 13,178 | 20,330 | 44,814 | 41,161 | 38,656 | 11,722 | 11,287 | 23,124 | 25,706 | 43,056 | 25,807 | 21,268 | -5,201 | -19,338 | -27,697 | -45,800 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | -12.68% | -5.92% | -7.23% | 1.43% | 1.88% | 3.06% | 6.74% | 6.37% | 6.47% | 1,436.52% | 1.41% | 2.92% | 3.13% | 5.30% | 3.28% | 2.85% | -0.73% | -2.77% | -3.99% | -6.92% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-105,302K ÷ ($—K + $830,439K)
= -12.68%
Ligand Pharmaceuticals Incorporated's return on total capital has shown fluctuating results over the past few years, ranging from negative percentages to extremely high positive returns.
The company experienced negative returns in the first half of 2020, with a gradual improvement starting in March 2021. The return on total capital increased significantly in September 2021 and reached a peak of 1436.52% in September 2022. This exceptional increase could be due to a variety of factors such as increased profitability, improved asset utilization, or maybe even some accounting anomalies.
However, the return on total capital decreased sharply in the following quarters, dropping to negative percentages by the end of 2024. The negative returns in the second half of 2024 may indicate challenges or difficulties faced by the company during that period which impacted its ability to generate returns on its total capital.
Overall, the trend in Ligand Pharmaceuticals' return on total capital shows significant volatility and fluctuation, suggesting a mix of both positive and negative financial performance indicators over the analyzed period. Further analysis would be needed to understand the underlying reasons for these fluctuations and their implications for the company's financial health.
Peer comparison
Dec 31, 2024