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.