Ligand Pharmaceuticals Incorporated (LGND)

Debt-to-capital ratio

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
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
Debt-to-capital ratio 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.18 0.28 0.28 0.29 0.32 0.38 0.39 0.39 0.40 0.45 0.43 0.37 0.36

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 for Ligand Pharmaceuticals, Inc. has been relatively stable over the past eight quarters. In the most recent quarter (Q4 2023), the company reported a debt-to-capital ratio of 0.00, indicating that the company had no debt in relation to its total capital. This suggests a strong financial position with minimal reliance on debt to finance its operations.

Looking back at the trend over the previous quarters, we can see that the debt-to-capital ratio had been consistently low, ranging from 0.09 to 0.18. The slight increase in Q1 2023 and Q4 2022, where the ratio stood at 0.11, may indicate a slight uptick in the usage of debt relative to total capital during those periods.

Overall, the consistent low debt-to-capital ratios reflect a conservative approach to capital structure management by Ligand Pharmaceuticals, Inc., with a preference for funding operations through equity rather than debt. This strategy typically signifies lower financial risk and greater flexibility in the company's financial position.