Ligand Pharmaceuticals (FRA:LGDN) ROCE % : 8.95% (As of Dec. 2023)

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What is Ligand Pharmaceuticals ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Ligand Pharmaceuticals's annualized ROCE % for the quarter that ended in Dec. 2023 was 8.95%.

Ligand Pharmaceuticals ROCE % Historical Data

The historical data trend for Ligand Pharmaceuticals's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Ligand Pharmaceuticals ROCE % Chart

Ligand Pharmaceuticals Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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63.32

1.99

7.56

4.11

8.85

Ligand Pharmaceuticals Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															11.87	32.26	1.91	-6.60	8.95

Ligand Pharmaceuticals ROCE % Calculation

Ligand Pharmaceuticals's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	58.978	/	( ( (719.959 - 93.277)	+	(721.877 - 15.389) )	/ 2 )
	=	58.978	/	( (626.682	+	706.488)	/ 2 )
	=	58.978	/	666.585
	=	8.85 %

Ligand Pharmaceuticals's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	63.192	/	( ( (720.765 - 14.736)	+	(721.877 - 15.389) )	/ 2 )
	=	63.192	/	( ( 706.029	+	706.488 )	/ 2 )
	=	63.192	/	706.2585
	=	8.95 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Ligand Pharmaceuticals (FRA:LGDN) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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Ligand Pharmaceuticals (FRA:LGDN) Business Description

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GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Ligand Pharmaceuticals Inc (FRA:LGDN) » Definitions » ROCE %

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LGND:USA

Address

3911 Sorrento Valley Boulevard, Suite 110, San Diego, CA, USA, 92121

Website

https://www.ligand.com

Ligand Pharmaceuticals Inc is a biopharmaceutical company focused on developing and acquiring technologies that aid in creating medicine. The company has partnerships and license agreements with various pharmaceutical and biotechnology companies. Ligand's business model is based on drug discovery, early-stage drug development, product reformulation, and partnerships. The company's revenue consists of three primary elements: royalties from commercialized products, license and milestone payments, and sale of its trademarked Captisol material.

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