Ligand Pharmaceuticals Incorporated (LGND)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	—	0	320,717	442,293	638,959
Total assets	US$ in thousands	787,216	762,668	1,297,590	1,362,280	1,494,920
Debt-to-assets ratio		0.00	0.00	0.25	0.32	0.43

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $787,216K
= 0.00

The debt-to-assets ratio for Ligand Pharmaceuticals, Inc. has exhibited a declining trend over the past five years. In 2019, the ratio stood at 0.43, indicating that 43% of the company's assets were financed by debt. Subsequently, the ratio decreased to 0.33 in 2020, 0.25 in 2021, and further dropped to 0.10 in 2022, suggesting a significant reduction in reliance on debt to fund the company's assets. Notably, as of December 31, 2023, the company reported a debt-to-assets ratio of 0.00, implying that all of its assets were financed by equity or other non-debt sources.

This downward trend in the debt-to-assets ratio reflects a conservative approach to capital structure and financial leverage, indicating that the company has been reducing its debt levels relative to its total assets. A lower debt-to-assets ratio generally implies lower financial risk and greater financial stability for the company. Consequently, the decreasing trend in this ratio suggests that Ligand Pharmaceuticals, Inc. has been effectively managing its debt obligations and optimizing its capital structure over the years.