Ligand Pharmaceuticals Incorporated (LGND)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.16 | 0.25 | 0.25 | 0.25 | 0.27 | 0.32 | 0.36 | 0.36 | 0.37 | 0.43 | 0.41 | 0.35 | 0.32 |
| 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 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.22 | 0.39 | 0.39 | 0.40 | 0.47 | 0.62 | 0.65 | 0.65 | 0.67 | 0.83 | 0.74 | 0.60 | 0.57 |
| 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 |
The solvency ratios of Ligand Pharmaceuticals, Inc. indicate the company's ability to meet its long-term debt obligations.
The debt-to-assets ratio remained consistently low at 0.00 throughout Q4 2023 to Q2 2023, suggesting that the company has a minimal amount of debt in relation to its total assets during these periods. However, there was a slight increase in Q1 2023 to 0.09, indicating a higher proportion of debt relative to assets at that time.
The debt-to-capital ratio also showed a consistent pattern of 0.00 from Q4 2023 to Q2 2023, indicating that the company did not rely heavily on debt to finance its operations compared to its capital structure. In Q1 2023, there was a slight increase to 0.11, suggesting a slightly higher dependence on debt for capital requirements.
The debt-to-equity ratio mirrored similar trends to the debt-to-capital ratio, with a consistent 0.00 from Q4 2023 to Q2 2023, indicating a minimal debt burden in relation to shareholder equity. However, in Q1 2023, the ratio increased to 0.12, showcasing a higher level of debt relative to equity at that period.
The financial leverage ratio, which measures the company's use of debt to finance its operations, showed a consistent increase from Q4 2022 to Q1 2022. The ratio ranged from 1.12 in Q4 2022 to 1.39 in Q1 2022, indicating a gradual increase in the company's financial leverage over time.
Overall, based on the analysis of solvency ratios, Ligand Pharmaceuticals, Inc. has maintained a relatively low level of debt in relation to its assets, capital, and equity. However, there has been a slight increase in the reliance on debt for financing, as seen in the higher ratios in Q1 2023 and the increasing trend in the financial leverage ratio over the observed periods.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 95.50 | 87.39 | 75.22 | 59.67 | 5.37 | -1.43 | 0.75 | 3.44 | 3.70 | 3.68 | 2.32 | 2.04 | 0.62 | 0.26 | 0.07 | -1.16 | 23.29 | 16.90 | 18.20 | 18.89 |
Based on the data provided, it is evident that Ligand Pharmaceuticals, Inc. had negative interest coverage ratios in the third quarter of 2022 and the second quarter of 2022, indicating that the company's operating income was insufficient to cover its interest expenses during these periods. This is a concerning sign as negative interest coverage ratios suggest that the company may have difficulty meeting its interest obligations using its current level of earnings.
In contrast, the interest coverage ratio improved significantly in the first quarter of 2022, reaching 2.81, indicating that the company's operating income was more than sufficient to cover its interest expenses during that period. However, as the data for the subsequent quarters of 2023 is missing, it is challenging to provide a complete analysis of the trend in interest coverage.
It is crucial for investors and stakeholders to monitor the interest coverage ratio over time to assess the company's ability to meet its interest payments and to ensure the company's financial health and stability.