Name: CoStar Group Inc. (NASDAQ:CSGP) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

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.

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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 balance sheet exhibits a significant expansion in both total liabilities and stockholders' equity between 2018 and 2022, with the total capital structure growing from 3.31 billion USD to 8.40 billion USD. This growth is characterized by a strategic shift in financing observed in 2020 and a consistent accumulation of equity through retained earnings and capital contributions.

Debt and Long-Term Liabilities: A fundamental shift in the liability profile occurred in 2020 with the introduction of substantial long-term debt, which rose from zero in 2019 to 986.7 million USD. This figure remained relatively stable through 2022, ending at 989.2 million USD. This suggests a one-time strategic borrowing event that significantly increased the company's leverage but remained flat thereafter.
Current Liability Trends: Current liabilities demonstrated a steady upward trajectory, increasing from 154.2 million USD in 2018 to 372.6 million USD in 2022. This growth is driven primarily by increases in accounts payable, which rose more than fourfold, and accrued wages and commissions, which grew from 45.6 million USD to 105.0 million USD. Deferred revenue also showed a consistent increase, rising from 51.5 million USD to 103.6 million USD, indicating growth in prepaid service contracts.
Stockholders' Equity Growth: Stockholders' equity experienced robust growth, increasing from 3.02 billion USD in 2018 to 6.87 billion USD in 2022. This expansion was fueled by two primary drivers: a substantial increase in additional paid-in capital, which rose from 2.42 billion USD to 5.07 billion USD, and a strong trend in retained earnings, which grew from 613.5 million USD to 1.83 billion USD. The steady rise in retained earnings indicates consistent profitability over the five-year period.
Financial Stability and Leverage: Despite the sharp increase in total liabilities from 291.0 million USD in 2018 to 1.53 billion USD in 2022, the growth in stockholders' equity outpaced the growth in debt. The equity-to-liability ratio remains strong, as the company maintains a capital structure heavily weighted toward equity, providing a significant buffer against its long-term debt obligations.

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