Ligand Pharmaceuticals (Ligand Pharmaceuticals) Interest Coverage

: 0 (At Loss) (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Ligand Pharmaceuticals's Operating Income for the three months ended in Dec. 2023 was $-3.4 Mil. Ligand Pharmaceuticals's Interest Expense for the three months ended in Dec. 2023 was $-0.1 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Ligand Pharmaceuticals's Interest Coverage or its related term are showing as below:

LGND' s Interest Coverage Range Over the Past 10 Years
Min: 0.74 Med: 3.42 Max: 14.97
Current: 14.97

LGND's Interest Coverage is ranked worse than
71.35% of 356 companies
in the Biotechnology industry
Industry Median: 135.52 vs LGND: 14.97

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Ligand Pharmaceuticals Interest Coverage Historical Data

The historical data trend for Ligand Pharmaceuticals's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Ligand Pharmaceuticals Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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0.74

5.29

1.69

14.97

Ligand Pharmaceuticals Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															-	59.19	-	957.00	-

Competitive Comparison

For the Biotechnology subindustry, Ligand Pharmaceuticals's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Biotechnology industry and Healthcare sector, Ligand Pharmaceuticals's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Ligand Pharmaceuticals's Interest Coverage falls into.

Ligand Pharmaceuticals Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Ligand Pharmaceuticals's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Ligand Pharmaceuticals's Interest Expense was $-0.7 Mil. Its Operating Income was $9.8 Mil. And its Long-Term Debt & Capital Lease Obligation was $5.8 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	9.821	/	-0.656
	=	14.97

Ligand Pharmaceuticals's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Ligand Pharmaceuticals's Interest Expense was $-0.1 Mil. Its Operating Income was $-3.4 Mil. And its Long-Term Debt & Capital Lease Obligation was $5.8 Mil.

Ligand Pharmaceuticals did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's Financial Strength is.

Ligand Pharmaceuticals (NAS:LGND) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Ligand Pharmaceuticals Interest Coverage Related Terms

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Ligand Pharmaceuticals (Ligand Pharmaceuticals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Ligand Pharmaceuticals Inc (NAS:LGND) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

LGDN:Germany

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.

Executives

Martine Zimmermann	director	C/O LIGAND PHARMACEUTICALS INCORPORATED, 3911 SORRENTO VALLEY BOULEVARD SUITE 110, SAN DIEGO CA 92121
Todd C Davis	director	11119 NORTH TORREY PINES ROAD, SUITE 200, LA JOLLA CA 92037
Andrew Reardon	officer: CHIEF LEGAL OFFICER &	C/O LIGAND PHARMACEUTICALS INCORPORATED, 3911 SORRENTO VALLEY BLVD, SUITE 110, SAN DIEGO CA 92121
Octavio Espinoza	officer: Chief Financial Officer	C/O LIGAND PHARMACEUTICALS INC, 3911 SORRENTO VALLEY BOULEVARD, STE 110, SAN DIEGO CA 92121
John W Kozarich	director	10275 SCIENCE CENTER DR, SAN DIEGO CA 92121
Stephen L Sabba	director	DORSET MANAGEMENT CORP, 485 UNDERHILL BLVD SUITE 205, SYOSSET NY 11791
John L Higgins	officer: CEO & President	11119 NORTH TORREY PINES ROAD, SUITE 200, LA JOLLA CA 92037
Jason Haas	director	C/O SYROS PHARMACEUTICALS, INC., 35 CAMBRIDGEPARK DRIVE, CAMBRIDGE MA 02140
Matthew W Foehr	officer: EVP and COO	11119 NORTH TORREY PINES RD #200, LA JOLLA CA 92037
John L Lamattina	director	81 WYMAN ST, POST OFFICE BOX 9046, WALTHAM MA 02454
Jennifer R. Cochran	director	C/O LIGAND PHARMACEUTICALS INC, 3911 SORRENTO VALLEY BOULEVARD, STE 100, SAN DIEGO CA 92121
Charles S Berkman	officer: Asso. Gen. Counsel, Secretary	11085 NORTH TORREY PINES ROAD, SUITE 300, LA JOLLA CA 92037
Sunil Patel	director	11085 NORTH TORREY PINES RD., SUITE 300, LA JOLLA CA 92037
Goldman Sachs Group Inc	10 percent owner	200 WEST STREET, NEW YORK NY 10282
Goldman Sachs & Co. Llc	10 percent owner	200 WEST STREET, NEW YORK NY 10282