Operating Profit Margin
since 2005
Calculation
CoStar Group Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Income from operations1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 20.66% | = | 100 | × | 450,949) | ÷ | 2,182,399) |
| Dec 31, 2021 | 22.24% | = | 100 | × | 432,337) | ÷ | 1,944,135) |
| Dec 31, 2020 | 17.43% | = | 100 | × | 289,202) | ÷ | 1,659,019) |
| Dec 31, 2019 | 25.97% | = | 100 | × | 363,547) | ÷ | 1,399,719) |
| Dec 31, 2018 | 22.95% | = | 100 | × | 273,564) | ÷ | 1,191,832) |
| Dec 31, 2017 | 18.01% | = | 100 | × | 173,816) | ÷ | 965,230) |
| Dec 31, 2016 | 17.30% | = | 100 | × | 144,905) | ÷ | 837,630) |
| Dec 31, 2015 | 1.61% | = | 100 | × | 11,455) | ÷ | 711,764) |
| Dec 31, 2014 | 14.04% | = | 100 | × | 80,878) | ÷ | 575,936) |
| Dec 31, 2013 | 12.28% | = | 100 | × | 54,154) | ÷ | 440,943) |
| Dec 31, 2012 | 7.84% | = | 100 | × | 27,440) | ÷ | 349,936) |
| Dec 31, 2011 | 8.65% | = | 100 | × | 21,771) | ÷ | 251,738) |
| Dec 31, 2010 | 10.07% | = | 100 | × | 22,775) | ÷ | 226,260) |
| Dec 31, 2009 | 15.18% | = | 100 | × | 31,835) | ÷ | 209,659) |
| Dec 31, 2008 | 18.73% | = | 100 | × | 39,788) | ÷ | 212,428) |
| Dec 31, 2007 | 9.26% | = | 100 | × | 17,852) | ÷ | 192,805) |
| Dec 31, 2006 | 8.86% | = | 100 | × | 14,081) | ÷ | 158,889) |
| Dec 31, 2005 | 5.47% | = | 100 | × | 7,342) | ÷ | 134,338) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The operational efficiency of the entity has evolved from a low-margin baseline to a significantly higher, albeit volatile, profit structure over the period from 2005 to 2022. While revenues grew consistently, expanding from 134.3 million USD in 2005 to 2.18 billion USD in 2022, the operating profit margin experienced several distinct cycles of contraction and expansion.
- Early Growth and Volatility (2005–2012)
- Operating margins initially trended upward, rising from 5.47% in 2005 to a peak of 18.73% in 2008. This growth was followed by a sustained period of compression over four years, with the margin receding to 7.84% by 2012, suggesting that operating expenses outpaced revenue growth during this interval.
- The 2015 Anomaly and Rapid Recovery (2013–2019)
- After a moderate recovery in 2013 and 2014, a severe contraction occurred in 2015, with the operating profit margin dropping to a period low of 1.61%. This decline was short-lived, as the subsequent four years saw a sharp and consistent expansion. Margins climbed from 17.30% in 2016 to a peak of 25.97% in 2019, marking the most profitable phase in the observed timeframe.
- Recent Stabilization (2020–2022)
- A temporary decline to 17.43% was observed in 2020, followed by a return to higher levels of profitability. The margin reached 22.24% in 2021 before settling at 20.66% in 2022. This indicates a stabilization of operational efficiency at a level significantly higher than the historical averages seen prior to 2016.
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