Ligand Pharmaceuticals Incorporated (LGND)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	941,774	787,216	762,668	1,301,380	1,362,280
Total stockholders’ equity	US$ in thousands	830,439	700,913	597,485	821,629	709,525
Financial leverage ratio		1.13	1.12	1.28	1.58	1.92

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $941,774K ÷ $830,439K
= 1.13

The financial leverage ratio of Ligand Pharmaceuticals Incorporated has shown a downward trend over the past five years, decreasing from 1.92 at the end of 2020 to 1.13 at the end of 2024. This indicates that the company has been reducing its reliance on debt to finance its operations and investments. A decreasing financial leverage ratio generally signifies a lower level of financial risk as the company is relying more on equity rather than debt to support its activities. Ligand Pharmaceuticals Incorporated's declining financial leverage ratio may indicate a strengthening financial position and improved financial stability over the years. It suggests that the company's operations are becoming less dependent on borrowed funds, which could be viewed positively by investors and creditors.