Ligand Pharmaceuticals Incorpor — Earnings Quality Grade F
LGND · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 81 days, change -3 days YoY
AR growth 55.3% vs revenue growth 60.4%
Revenue grew 60.4% but CFFO declined -49.1%
Expense Quality
Inventory -35.3% vs COGS 31.4%. Normal
CapEx growth -42.4% vs revenue 60.4%. Normal
SG&A/Gross Profit = 36.5%. Normal
Gross margin 94.6%, change +1.2pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
FCF < 50% of Net Income for 2 years
Accruals ratio = 4.8%. Low accruals
Cash $0.8B covers debt $0.5B
Balance Sheet Health
Goodwill+Intangibles $0.3B = 32% of equity
Debt/EBITDA = 2.3x. Healthy
Other assets -74.2% vs revenue 60.4%. Normal
Write-offs normal
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles change -12% YoY. Normal
Manipulation Score
M-Score = -4.08 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
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Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25