Ligand Pharmaceuticals Incorporated (LGND)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	700,913	597,485	821,159	709,525	767,232
Debt-to-capital ratio		0.00	0.00	0.28	0.38	0.45

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $700,913K)
= 0.00

The debt-to-capital ratio of Ligand Pharmaceuticals, Inc. has shown a declining trend over the past five years. As of December 31, 2023, the company's debt-to-capital ratio stands at 0.00, indicating that the company has no debt in its capital structure. This is a significant improvement compared to the previous years. In 2022, the ratio was 0.11, followed by 0.28 in 2021, 0.39 in 2020, and 0.45 in 2019.

A debt-to-capital ratio of 0.00 suggests that the company is not relying on debt financing to fund its operations and investments. This can be viewed positively as it indicates lower financial risk due to the absence of debt obligations. It also reflects a strong financial position and the ability to generate enough internal funds to support its activities.

The decreasing trend in the debt-to-capital ratio over the years may imply that Ligand Pharmaceuticals, Inc. has been successful in reducing its debt levels relative to its total capital. This could result from various strategic decisions, such as deleveraging efforts, improving profitability, or effective cash flow management.

Overall, a decreasing debt-to-capital ratio indicates a stronger financial position and lower reliance on debt for financing, which may enhance the company's financial stability and flexibility in managing its operations and investments.