Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

CoStar Group Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Accounts payable	28,460)	22,244)	15,732)	7,640)	6,327)
Accrued wages and commissions	104,988)	81,794)	80,998)	53,087)	45,588)
Accrued expenses	89,113)	81,676)	110,305)	38,680)	29,821)
Deferred gain on the sale of building	—)	—)	—)	—)	2,523)
Income taxes payable	10,438)	31,236)	16,316)	10,705)	14,288)
Deferred rent	—)	—)	—)	—)	4,153)
Current portion of operating lease liabilities	36,049)	26,268)	32,648)	29,670)	—)
Deferred revenue	103,567)	95,471)	74,851)	67,274)	51,459)
Current liabilities	372,615)	338,689)	330,850)	207,056)	154,159)
Deferred gain on the sale of building	—)	—)	—)	—)	13,669)
Deferred rent	—)	—)	—)	—)	31,944)
Long-term debt, net	989,210)	987,944)	986,715)	—)	—)
Deferred income taxes, net	76,202)	98,656)	72,991)	87,096)	69,857)
Income taxes payable	14,001)	12,496)	25,282)	20,521)	17,386)
Lease and other long-term liabilities	80,321)	107,414)	124,223)	133,720)	4,000)
Long-term liabilities	1,159,734)	1,206,510)	1,209,211)	241,337)	136,856)
Total liabilities	1,532,349)	1,545,199)	1,540,061)	448,393)	291,015)
Preferred stock, $0.01 par value; zero outstanding	—)	—)	—)	—)	—)
Common stock, $0.01 par value	4,066)	3,946)	394)	366)	364)
Additional paid-in capital	5,065,511)	4,253,318)	4,208,252)	2,473,338)	2,419,812)
Accumulated other comprehensive loss	(29,075)	(5,758)	(889)	(8,585)	(11,688)
Retained earnings	1,829,619)	1,460,166)	1,167,602)	940,474)	613,454)
Stockholders’ equity	6,870,121)	5,711,672)	5,375,359)	3,405,593)	3,021,942)
Total liabilities and stockholders’ equity	8,402,470)	7,256,871)	6,915,420)	3,853,986)	3,312,957)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

The financial data reveals a consistent upward trajectory in the company's liabilities and equity over the analyzed periods, with notable trends across specific accounts.

Current Liabilities: There has been a significant increase in current liabilities, rising from approximately $154 million in 2018 to about $373 million in 2022. Key contributors to this increase include accounts payable, which more than quadrupled from around $6.3 million to nearly $28.5 million, and accrued wages and commissions, which grew from about $45.6 million to $105 million. Deferred revenue also escalated steadily, reaching approximately $103.6 million by 2022, indicating increased prepayments or unearned income.
Non-Current Liabilities: Long-term debt remained relatively stable once introduced in 2020, hovering just below $1 billion through 2022. However, lease and other long-term liabilities experienced a decline from a peak of approximately $133.7 million in 2019 to about $80.3 million in 2022. Deferred income taxes showed variability with no clear upward or downward trend, reflecting fluctuations in tax positions or timing differences.
Total Liabilities: Total liabilities surged markedly from roughly $291 million in 2018 to over $1.53 billion in 2022, driven largely by the growth in long-term liabilities post-2019 and increasing current liabilities.
Equity Components: Stockholders' equity demonstrated substantial growth, increasing from about $3.02 billion in 2018 to nearly $6.87 billion in 2022. This growth is primarily fueled by increments in additional paid-in capital and retained earnings. Additional paid-in capital more than doubled, rising sharply after 2019, indicative of significant equity financing or capital injections. Retained earnings also expanded consistently, reflecting ongoing profitability and earnings retention within the company.
Other Observations: Accumulated other comprehensive loss displayed notable volatility, with a marked increase in loss in 2022 reaching approximately $29 million. This suggests potential impacts from foreign currency translation adjustments, pension liabilities, or other comprehensive income components. The deferred gain on the sale of the building and deferred rent accounts were present only in the earlier years and absent thereafter.

Overall, the financial data signals robust growth in both liabilities and equity, supported by expanding operational obligations and capital structure enhancements. The rising current liabilities indicate increased operational scale, while stable long-term debt levels and growing equity suggest a balanced financing approach. Fluctuations in certain deferred and tax-related accounts merit further exploration to understand their implications on the company’s financial position.

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CoStar Group Inc. (NASDAQ:CSGP)

Balance Sheet: Liabilities and Stockholders’ Equity