Ligand Pharmaceuticals Incorporated (LGND)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.13 | 1.14 | 1.12 | 1.13 | 1.19 | 1.16 | 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 |
Ligand Pharmaceuticals Incorporated demonstrates a strong solvency position based on its solvency ratios. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have consistently been at 0.00 from March 31, 2020, to December 31, 2024. This indicates that the company has no long-term debt relative to its assets, capital, or equity, reflecting a low financial risk and good financial health.
Furthermore, the financial leverage ratio has shown a decreasing trend over the years, starting at 1.79 on March 31, 2020, and decreasing to 1.13 on December 31, 2024. This reduction signifies that the company is relying less on debt to fund its operations and investments, leading to a more balanced capital structure and lower financial risk.
Overall, Ligand Pharmaceuticals Incorporated's solvency ratios suggest a conservative financial management approach with a low reliance on debt, which bodes well for its long-term sustainability and financial stability.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -34.72 | -21.81 | -36.37 | 4.99 | 3.92 | 6.29 | 12.57 | 20.94 | 27.11 | 2.05 | 1.15 | 1.62 | 1.32 | 2.00 | 1.15 | 0.98 | -0.21 | -0.72 | -0.90 | -1.29 |
Ligand Pharmaceuticals Incorporated's interest coverage ratio has shown significant fluctuations over the periods analyzed. Initially, from March 2020 to June 2021, the company had negative interest coverage ratios, indicating that its earnings before interest and taxes were insufficient to cover its interest expenses. However, starting from March 2021, the interest coverage ratio turned positive, indicating an improvement in the company's ability to cover its interest obligations.
From March 2023 to June 2023, the company's interest coverage ratio showed a decline from 20.94 to 12.57, suggesting a potential deterioration in its ability to cover interest expenses. However, the ratio improved in the subsequent periods, reaching 4.99 by March 2024.
The most notable observation is in the last three periods (June 2024 to December 2024), where the interest coverage ratio sharply decreased to negative values, with the ratio being at -36.37 by June 30, 2024, and further decreasing to -34.72 by December 31, 2024. These negative values indicate significant financial distress, as the company's earnings before interest and taxes were insufficient to cover its interest payments during these periods.
Overall, while there have been fluctuations in Ligand Pharmaceuticals Incorporated's interest coverage ratio, it is essential for investors and creditors to monitor the company's ability to generate sufficient earnings to cover its interest expenses in order to assess its financial health and stability.