Ligand Pharmaceuticals Incorporated (LGND)

Debt-to-equity 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-equity ratio		0.00	0.00	0.39	0.62	0.83

December 31, 2023 calculation

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

The debt-to-equity ratio of Ligand Pharmaceuticals, Inc. has exhibited a declining trend over the past five years, indicating a favorable financial position. In 2023, the company reported a debt-to-equity ratio of 0.00, which suggests that the company has no debt and relies entirely on equity to finance its operations. This could signify a strong financial position and lower financial risk for the company.

Looking at the historical data, the debt-to-equity ratio has decreased steadily from 0.83 in 2019 to 0.00 in 2023. This decline indicates that the company has been reducing its reliance on debt financing in favor of equity financing. It may imply that Ligand Pharmaceuticals has been able to improve its financial stability, lower its leverage, and potentially enhance its ability to weather economic downturns.

Overall, the decreasing trend in the debt-to-equity ratio of Ligand Pharmaceuticals, Inc. suggests a positive financial management strategy, indicating a conservative approach to capital structure and potentially strengthening the company's long-term financial health.