Return on Assets (ROA)
since 2005
Calculation
CoStar Group Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss)1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 4.40% | = | 100 | × | 369,453) | ÷ | 8,402,470) |
| Dec 31, 2021 | 4.03% | = | 100 | × | 292,564) | ÷ | 7,256,871) |
| Dec 31, 2020 | 3.28% | = | 100 | × | 227,128) | ÷ | 6,915,420) |
| Dec 31, 2019 | 8.17% | = | 100 | × | 314,963) | ÷ | 3,853,986) |
| Dec 31, 2018 | 7.19% | = | 100 | × | 238,334) | ÷ | 3,312,957) |
| Dec 31, 2017 | 4.27% | = | 100 | × | 122,695) | ÷ | 2,873,441) |
| Dec 31, 2016 | 3.89% | = | 100 | × | 85,071) | ÷ | 2,185,063) |
| Dec 31, 2015 | -0.17% | = | 100 | × | (3,465) | ÷ | 2,079,571) |
| Dec 31, 2014 | 2.15% | = | 100 | × | 44,869) | ÷ | 2,083,682) |
| Dec 31, 2013 | 2.37% | = | 100 | × | 29,734) | ÷ | 1,256,982) |
| Dec 31, 2012 | 0.85% | = | 100 | × | 9,915) | ÷ | 1,165,139) |
| Dec 31, 2011 | 1.90% | = | 100 | × | 14,656) | ÷ | 771,035) |
| Dec 31, 2010 | 3.02% | = | 100 | × | 13,289) | ÷ | 439,648) |
| Dec 31, 2009 | 4.62% | = | 100 | × | 18,693) | ÷ | 404,579) |
| Dec 31, 2008 | 7.36% | = | 100 | × | 24,623) | ÷ | 334,384) |
| Dec 31, 2007 | 4.96% | = | 100 | × | 15,951) | ÷ | 321,843) |
| Dec 31, 2006 | 4.51% | = | 100 | × | 12,410) | ÷ | 275,437) |
| Dec 31, 2005 | 2.60% | = | 100 | × | 6,457) | ÷ | 248,059) |
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 financial trajectory from 2005 to 2022 is characterized by substantial growth in both net income and the asset base, though the efficiency of asset utilization experienced significant volatility. While net income increased by more than 5,600% over the period, the Return on Assets (ROA) fluctuated, reflecting periods of aggressive expansion and subsequent operational stabilization.
- Net Income Trends
- Net income exhibited a general upward trend, rising from 6.46 million US dollars in 2005 to 369.45 million US dollars by 2022. A notable period of instability occurred in 2015, where the company reported a net loss of 3.47 million US dollars. However, this was followed by a period of rapid acceleration starting in 2016, with income reaching a peak of 314.96 million US dollars in 2019 before continuing its growth toward the end of the period.
- Asset Base Expansion
- Total assets grew consistently, moving from 248.06 million US dollars in 2005 to 8.40 billion US dollars in 2022. The expansion was most aggressive between 2019 and 2020, where assets increased from 3.85 billion US dollars to 6.92 billion US dollars, representing a nearly 80% increase in a single year. This suggests a significant capital investment or acquisition phase during this window.
- Return on Assets (ROA) Analysis
- The ROA demonstrated cyclicality throughout the period. After peaking at 7.36% in 2008, a downward trend was observed, reaching a low of 0.85% in 2012 and dipping into negative territory (-0.17%) in 2015. A strong recovery occurred between 2016 and 2019, culminating in a period high of 8.17%. The subsequent drop to 3.28% in 2020 corresponds directly with the massive increase in total assets, indicating that the growth in the asset base initially outpaced the growth in net earnings. Since 2020, the ROA has shown a steady recovery, climbing to 4.40% by 2022.
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Comparison to Industry (Industrials)
CoStar Group Inc., ROA, long-term trends, comparison to industry (industrials)
| CoStar Group Inc. | Industrials | |
|---|---|---|
| Dec 31, 2022 | 4.40% | 3.31% |
| Dec 31, 2021 | 4.03% | 3.40% |
| Dec 31, 2020 | 3.28% | 0.04% |
| Dec 31, 2019 | 8.17% | 2.56% |
| Dec 31, 2018 | 7.19% | 3.16% |
| Dec 31, 2017 | 4.27% | 3.59% |
| Dec 31, 2016 | 3.89% | 4.55% |
| Dec 31, 2015 | -0.17% | 3.52% |
| Dec 31, 2014 | 2.15% | 4.31% |
| Dec 31, 2013 | 2.37% | 3.91% |
| Dec 31, 2012 | 0.85% | 3.38% |
| Dec 31, 2011 | 1.90% | 3.69% |
| Dec 31, 2010 | 3.02% | 3.03% |
| Dec 31, 2009 | 4.62% | 2.24% |
| Dec 31, 2008 | 7.36% | 3.10% |
| Dec 31, 2007 | 4.96% | 3.87% |
| Dec 31, 2006 | 4.51% | 6.41% |
| Dec 31, 2005 | 2.60% | 1.42% |
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).