Ligand Pharmaceuticals Incorporated (LGND)

Financial leverage 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
Total assets	US$ in thousands	787,216	769,226	758,105	811,076	762,668	1,050,600	1,076,290	1,105,180	1,297,590	1,273,660	1,256,280	1,295,120	1,362,280	1,247,450	1,242,940	1,185,920	1,494,920	1,547,480	1,801,840	1,913,990
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
Financial leverage ratio		1.12	1.15	1.14	1.25	1.28	1.29	1.34	1.39	1.58	1.57	1.60	1.74	1.92	1.79	1.79	1.79	1.95	1.82	1.73	1.77

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $787,216K ÷ $700,913K
= 1.12

The financial leverage ratio of Ligand Pharmaceuticals, Inc. has shown a decreasing trend over the past few quarters. This ratio measures the company's use of debt to finance its operations and assets. A ratio above 1 indicates that the company relies more on debt financing than equity.

The trend from Q1 2022 to Q4 2022 shows a consistent increase in the financial leverage ratio from 1.39 to 1.28, indicating a higher reliance on debt during this period. However, starting from Q1 2023, there is a noticeable decline in the ratio, reaching 1.12 in Q4 2023.

The decreasing trend suggests that Ligand Pharmaceuticals has been reducing its reliance on debt financing since Q1 2023. This could be a positive sign as lower financial leverage ratios indicate a healthier balance sheet with less financial risk. It may also indicate that the company is managing its capital structure more efficiently or utilizing other forms of financing.

Overall, a declining financial leverage ratio for Ligand Pharmaceuticals, Inc. indicates a potentially improving financial position and a shift towards a more balanced capital structure. It is essential for investors to continue monitoring this ratio along with other financial metrics to assess the company's overall financial health and risk profile.