Ligand PharmaceuticalsFRA:LGDN +0.79%76 Current Ratio is 21.28 as of Mar. 2026, which is 162% above its 10-year median of 8.11. GuruFocus rates FRA:LGDN with a GF Score™ of 76/100 and a GF Value™ of €147.69 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,412 Biotechnology companies, Ligand Pharmaceuticals ranks better than 93.13% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Ligand Pharmaceuticals's current ratio for the quarter that ended in Mar. 2026 was 21.28.
Ligand Pharmaceuticals has a current ratio of 21.28. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Ligand Pharmaceuticals's Current Ratio or its related term are showing as below:
FRA:LGDN'
s Current Ratio Range Over the Past 10 Years
Min: 0.57 Med: 8.11 Max: 66.09
Current: 21.28
During the past 13 years, Ligand Pharmaceuticals's highest Current Ratio was 66.09. The lowest was 0.57. And the median was 8.11.
FRA:LGDN's Current Ratio is ranked better than 93.13% of 1412
companies
in the Biotechnology industry
Industry Median: 3.89
vs FRA:LGDN: 21.28
Ligand Pharmaceuticals (FRA:LGDN) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Ligand Pharmaceuticals Current Ratio Related Terms
Ligand Pharmaceuticals Current Ratio Historical Data
* 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.
FRA:LGDN vs DFTX, CGON, XENE: Current Ratio Comparison
For the Biotechnology subindustry, Ligand Pharmaceuticals's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ligand Pharmaceuticals Current Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Ligand Pharmaceuticals's Current Ratio distribution charts can be found below:
* The bar in red indicates where Ligand Pharmaceuticals's Current Ratio falls into.
* 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.
Ligand Pharmaceuticals (FRA:LGDN) has a Current Ratio of 21.28 as of Mar. 2026. This is 162% above median its historical median of 8.11. Over the past decade, Ligand Pharmaceuticals' Current Ratio has ranged from 0.57 to 66.09. According to the industry distribution chart, Ligand Pharmaceuticals ranks #97 out of 1412 companies in the Biotechnology industry, placing it in the top 6.9%.
Is Ligand Pharmaceuticals' Current Ratio too high?
Ligand Pharmaceuticals' current Current Ratio of 21.28 is 162% above median its 10-year median of 8.11. Over the past 10 years, this metric has ranged from a low of 0.57 to a high of 66.09. The Biotechnology industry median Current Ratio is 3.89. Ligand Pharmaceuticals' value of 21.28 is 447% above this industry median. Based on the distribution chart, Ligand Pharmaceuticals ranks #97 out of 1412 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, Ligand Pharmaceuticals has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ligand Pharmaceuticals' Current Ratio compare to DFTX and CGON?
According to the Biotechnology industry distribution chart, Ligand Pharmaceuticals ranks #97 out of 1412 companies for Current Ratio. This places Ligand Pharmaceuticals in the top 7% of its industry — outperforming the majority of peers. The industry median Current Ratio is 3.89. Ligand Pharmaceuticals' value of 21.28 is 447% above this benchmark. Historically, Ligand Pharmaceuticals' own Current Ratio has ranged from 0.57 to 66.09 over the past decade. While the company's 10-year median is 8.11 vs. the industry median of 3.89, Ligand Pharmaceuticals has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Biotechnology company?
The median Current Ratio among Biotechnology companies is 3.89, based on 1,412 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ligand Pharmaceuticals's current Current Ratio of 21.28 is 447% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Biotechnology industry, the median Current Ratio is 3.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ligand Pharmaceuticals's current Current Ratio is 21.28, which is 162% above median its own 10-year median of 8.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ligand Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Ligand Pharmaceuticals (FRA:LGDN) is currently considered Significantly Overvalued. The stock's GF Value™ is €147.69, compared to a current price of €254.00 — trading 72% above its estimated fair value. The current Current Ratio is 21.28, which is 162% above median its 10-year median of 8.11 and 447% above the Biotechnology industry median of 3.89. Ligand Pharmaceuticals' overall GF Score™ is 76/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Ligand Pharmaceuticals (FRA:LGDN), the current Current Ratio is 21.28 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ligand Pharmaceuticals (FRA:LGDN) Overvalued in 2026?
Based on GuruFocus' analysis, Ligand Pharmaceuticals stock appears to be overvalued.
The current stock price of €254.00 is trading 72% above its estimated GF Value™ of €147.69.
GuruFocus considers Ligand Pharmaceuticals to be Significantly Overvalued.
Key valuation signals for FRA:LGDN:
Current Ratio: 21.28 (162% above median its 10-year median of 8.11)
GF Value™: €147.69 vs. price of €254.00 (72% above fair value)
Industry Position: 447% above the Biotechnology median (#97 of 1412)
No single metric tells the full story. See the FRA:LGDN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
76GF Score
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