CoStar Group Inc. (NASDAQ:CSGP)

Total Asset Turnover

The reported total asset turnover ratio remained stable at 0.36 for the first two years (2018 and 2019) before declining significantly to 0.24 in 2020. It subsequently showed a slight increase to 0.27 in 2021 but decreased marginally to 0.26 in 2022. The adjusted total asset turnover mirrors this trend with a peak in 2019, a dip in 2020, and minor fluctuations thereafter. This indicates a reduced efficiency in asset utilization starting in 2020 that has not fully recovered.

Current Ratio

The reported current ratio displays an increasing trend overall, starting at 7.87 in 2018, decreasing somewhat in 2019 to 5.79, then rising sharply to 11.75 in 2020 and maintaining elevated levels through 2022, peaking at 13.92. The adjusted current ratio follows a similar but more pronounced increasing pattern, from 11.87 in 2018 to 19.32 by 2022. This suggests a strengthening liquidity position, indicating a higher level of short-term assets relative to liabilities over time.

Debt to Equity

The reported debt to equity ratio data begins in 2020, showing a downward trajectory from 0.18 in 2020 to 0.14 in 2022. The adjusted debt to equity ratio, available from 2018, remains low and relatively stable, slightly increasing in 2020 to 0.20 before declining gradually to 0.16 by 2022. These trends signify a modest reduction in reliance on debt financing relative to equity in recent years.

Debt to Capital

Similar to the debt to equity ratio, reported debt to capital figures start in 2020 and decrease steadily from 0.16 to 0.13 by 2022. Adjusted debt to capital ratios, available from 2018, show a slight rise in 2020 reaching 0.17, followed by a decline to 0.14 in 2022. This implies a modest reduction in debt proportion within the company’s capital structure over the latest years.

Financial Leverage

Reported financial leverage displayed a gradual increase from 1.10 in 2018 to a peak of 1.29 in 2020, then declined to 1.22 in 2022. Adjusted financial leverage follows a similar pattern, increasing through 2020 before tapering off towards 1.19 in 2022. This reflects a slight increase in the use of debt to finance assets up to 2020, with a subtle deleveraging effect thereafter.

Net Profit Margin

The reported net profit margin rose from 20% in 2018 to its highest point of 22.5% in 2019, before falling sharply to 13.69% in 2020. It then gradually improved to 16.93% by 2022. The adjusted net profit margin shows a similar pattern with a peak of 24.3% in 2019, a decline in 2020, recovery in 2021, but a decline again in 2022. This indicates profitability challenges starting in 2020, with partial recovery, though adjusted figures suggest some volatility in recent profitability.

Return on Equity (ROE)

The reported ROE decreased sharply from 7.89% in 2018 to 4.23% in 2020, with a modest rebound to 5.38% by 2022. The adjusted ROE shows a similar pattern, with a peak in 2019, significant fall in 2020, and a slight recovery thereafter. This decline highlights reduced effectiveness in generating returns on shareholders' equity from 2020 onward.

Return on Assets (ROA)

The reported ROA declined from 7.19% in 2018 to 3.28% in 2020, then improved modestly to 4.40% in 2022. Adjusted ROA follows a similar trajectory, with a peak in 2019, a sharp decline in 2020, and a partial recovery thereafter. This trend implies a reduction in efficiency in generating profits from total assets during the most recent years.

The annual financial data reveals significant trends in the company's performance over the five-year period ending in 2022. Revenues and total assets both experienced consistent growth, while asset turnover ratios fluctuated, indicating changes in asset utilization efficiency.

Revenues

There was a steady increase in revenues from 1,191,832 thousand US dollars in 2018 to 2,182,399 thousand US dollars in 2022. This upward trend reflects sustained growth, with the most pronounced increment occurring between 2019 and 2022.

Total Assets

Total assets expanded considerably during the period, rising from 3,312,957 thousand US dollars in 2018 to 8,402,470 thousand US dollars in 2022. The most substantial increase occurred between 2019 and 2020, where assets nearly doubled, indicating significant investment or acquisition activity.

Reported Total Asset Turnover

The reported total asset turnover ratio, measuring how effectively assets generate revenues, remained stable at 0.36 in 2018 and 2019 before declining sharply to 0.24 in 2020. A slight recovery followed with ratios of 0.27 in 2021 and 0.26 in 2022, yet the ratios remain below the initial levels. This pattern suggests that while revenue grew steadily, asset growth outpaced revenue growth, resulting in lower efficiency.

Adjusted Revenues

Adjusted revenues followed a similar growth trajectory to reported revenues, increasing from 1,199,321 thousand US dollars in 2018 to 2,189,457 thousand US dollars in 2022. The adjustments do not materially change the growth perspective but provide a slightly higher revenue base in each year.

Adjusted Total Assets

Adjusted total assets mirrored the reported asset growth, increasing from 3,480,275 thousand US dollars in 2018 to 8,404,943 thousand US dollars in 2022. The adjusted asset values closely track reported values, confirming the significant asset base expansion.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio was 0.34 in 2018 and increased to 0.37 in 2019, indicating improved asset utilization before declining sharply to 0.24 in 2020. Following that, there was partial recovery to 0.27 in 2021 and a slight decrease to 0.26 in 2022. This trend aligns with that seen in reported asset turnover, confirming a reduction in asset efficiency as asset growth outpaced revenue expansion after 2019.

Current Assets

There is a marked increase in current assets from 2018 to 2022. The figure nearly quadruples, rising from approximately $1.21 billion in 2018 to $5.19 billion in 2022. This demonstrates strong growth in the company's short-term resources over the five-year period.

Current Liabilities

Current liabilities show a more moderate upward trend, increasing from around $154 million in 2018 to $373 million in 2022. Although liabilities are rising, the increase is proportionally smaller compared to current assets.

Reported Current Ratio

The reported current ratio starts at 7.87 in 2018, dips to 5.79 in 2019, then consistently improves each year thereafter, reaching 13.92 in 2022. This indicates an improvement in the company’s ability to cover its short-term obligations with current assets, signaling stronger liquidity.

Adjusted Current Assets

Adjusted current assets trend closely with reported current assets, increasing from around $1.22 billion in 2018 to $5.20 billion in 2022. This adjustment appears to slightly increase the asset base each year.

Adjusted Current Liabilities

Adjusted current liabilities rise from approximately $103 million in 2018 to about $269 million in 2022, showing a steady increase but at a lower rate compared to adjusted current assets.

Adjusted Current Ratio

The adjusted current ratio demonstrates a consistently strong and improving liquidity position across the time frame. Starting at 11.87 in 2018, it dips slightly in 2019 to 8.62 but then rises significantly to reach 19.32 in 2022. This suggests that after adjustments, the company's liquidity is considerably higher, offering a strong buffer against short-term liabilities.

An analysis of the annual financial data reveals several key trends in the company's capital structure and leverage over the observed periods.

Total Debt

The total debt figures are unavailable for the years prior to 2020 but exhibit a relatively stable pattern from 2020 through 2022, with values approximately around 986.7 million in 2020, slightly increasing to 987.9 million in 2021, and 989.2 million in 2022. This indicates minimal variation and suggests a consistent debt level during this period.

Stockholders’ Equity

Stockholders’ equity shows a strong upward trajectory throughout the time frame. Starting from about 3.0 billion in 2018, equity rises steadily to approximately 3.4 billion in 2019, then experiences a marked increase to over 5.3 billion in 2020. The growth continues moderately to 5.7 billion in 2021 and reaches about 6.9 billion in 2022. This significant growth signals robust capital accumulation and shareholder value enhancement.

Reported Debt to Equity Ratio

This ratio is not provided for 2018 and 2019 but shows a declining trend from 0.18 in 2020 to 0.14 in 2022. The decrease in this ratio reflects a reduction in leverage on a reported basis, aligning with the observed increases in equity and stable debt levels.

Adjusted Total Debt

The adjusted total debt reveals initial values of 169 million in 2018 and 150 million in 2019, followed by a sharp increase to over 1.1 billion in 2020, remaining steady in 2021 and 2022 with slight declines. This spike in 2020 adjusted debt contrasts with the previously stable total debt figures, suggesting an accounting or classification change impacting the adjusted metric.

Adjusted Stockholders’ Equity

Adjusted equity is consistently higher than reported equity, growing from approximately 3.1 billion in 2018 to 7.1 billion in 2022. This pattern mirrors the growth seen in reported equity, indicating continued strengthening of the financial base under the adjusted framework.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio decreases from 0.20 in 2020 to 0.16 in 2022, after a low base of 0.05 and 0.04 in 2018 and 2019 respectively. Despite the increase in adjusted debt in 2020, the ratio's subsequent decline demonstrates that equity growth outpaces debt growth, resulting in progressively lower leverage according to adjusted figures.

Overall, the company exhibits a trend of expanding equity capital paired with relatively stable debt levels. Leverage ratios, both reported and adjusted, show a declining pattern in recent years, suggesting prudent financial management and an improving balance sheet strength. The sharp rise in adjusted debt in 2020 warrants further investigation to understand the factors influencing this adjustment, but it does not appear to negatively impact the company’s overall leverage profile given the concurrent growth in equity.

Total Debt

Data for total debt is only available from 2020 onward, showing a stable trend with slight increases from 986,715 thousand US dollars in 2020 to 987,944 thousand in 2021, and further to 989,210 thousand in 2022. This suggests minimal fluctuation in the company's debt levels over these three years.

Total Capital

Total capital demonstrates a consistent upward trend over the five-year period, rising from 3,021,942 thousand US dollars in 2018 to 7,859,331 thousand in 2022. The most significant increase occurs between 2019 and 2020, where the capital nearly doubles, indicating substantial growth or infusion of capital during that period.

Reported Debt to Capital Ratio

This ratio is available from 2020, displaying a gradual decline from 0.16 in 2020 to 0.15 in 2021 and further down to 0.13 in 2022. The trend indicates improving leverage, with the company reducing its reported debt relative to its capital base over time.

Adjusted Total Debt

Adjusted total debt figures show an initial increase from 169,078 thousand US dollars in 2018 to a peak of 1,124,692 thousand in 2020, followed by a slight decrease to 1,113,582 thousand in 2021 and 1,101,266 thousand in 2022. This pattern suggests an expansion in adjusted debt levels up to 2020, with stabilization and minor reduction afterwards.

Adjusted Total Capital

Adjusted total capital consistently increases from 3,310,576 thousand in 2018 to 8,153,844 thousand in 2022. The growth trajectory, similar to total capital, includes a notable rise between 2019 and 2020, reflecting significant capital growth adjusted for certain factors.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio exhibits a decrease from 0.05 in 2018 to 0.04 in 2019, then a marked increase to 0.17 in 2020, followed by a steady decline to 0.16 in 2021 and 0.14 in 2022. This pattern reveals a temporary increase in adjusted leverage in 2020, which gradually improved in subsequent years, though remaining higher than pre-2020 levels.

Over the analyzed period, total assets exhibited a consistent upward trend, increasing significantly from approximately 3.31 billion US dollars in 2018 to about 8.40 billion US dollars by the end of 2022. This represents more than a twofold growth over the five-year span, indicating expansion in the company's asset base.

Stockholders’ equity also showed considerable growth during the same timeframe. It rose from roughly 3.02 billion US dollars in 2018 to near 6.87 billion US dollars in 2022. This increase in equity suggests retention of earnings or capital infusions, contributing to a stronger equity position.

When considering reported financial leverage, the ratio increased from 1.1 in 2018 to a peak of 1.29 in 2020, then gradually declined to 1.22 by 2022. This pattern indicates that the company initially took on more debt relative to equity but has since moderately reduced leverage, potentially aiming to strengthen its financial stability.

The adjusted total assets closely mirror the trend of reported total assets, increasing from approximately 3.48 billion US dollars in 2018 to about 8.40 billion US dollars in 2022. Adjusted stockholders’ equity similarly followed a rising pattern, growing from around 3.14 billion US dollars to over 7.05 billion US dollars within the same period.

The adjusted financial leverage ratio showed a slight decrease from 1.11 in 2018 to 1.08 in 2019, then increased to 1.25 in 2020, followed by a reduction to 1.19 by 2022. This trajectory aligns with the reported leverage trend, reflecting a moderate increase in leverage around 2020 with a subsequent decline, indicating efforts towards deleveraging or balance sheet optimization.

Overall, the data depict a company experiencing substantial growth in its asset base and equity capital, accompanied by a controlled approach to leverage. After a period of rising financial leverage through 2020, there has been a cautious move towards reducing it, suggesting a strategic focus on maintaining financial strength as the company scales.

The financial data exhibits several noticeable trends over the five-year period.

Revenues

There is a consistent year-over-year increase in revenues, rising from approximately 1.19 billion USD in 2018 to over 2.18 billion USD by 2022. This indicates steady growth in the company's sales or service income over the period.

Net Income

Net income shows fluctuations with an initial increase from about 238 million USD in 2018 to nearly 315 million USD in 2019, followed by a dip to 227 million USD in 2020. Subsequently, net income recovered and grew to 369 million USD in 2022, surpassing previous highs. This variability may be influenced by operational or market conditions during the observed years.

Reported Net Profit Margin

The reported net profit margin demonstrates a declining trend after peaking at 22.5% in 2019. It fell to 13.69% in 2020, then experienced a slight recovery reaching 16.93% by 2022. This declining margin despite growing revenues suggests increasing costs or other elements impacting profitability ratios.

Adjusted Net Income

Adjusted net income closely follows the pattern of reported net income but remains slightly higher in each year. It peaked at approximately 345 million USD in 2019, dropped to around 241 million USD in 2020, and rose again to about 321 million USD in 2022. The adjustment indicates recognition of certain items excluded from net income, smoothing fluctuations to some extent.

Adjusted Revenues

Adjusted revenues maintain a similar upward trajectory as reported revenues, increasing steadily from nearly 1.2 billion USD in 2018 to approximately 2.19 billion USD in 2022, supporting the trend of sustained growth in the company's operational scale.

Adjusted Net Profit Margin

The adjusted net profit margin shows a peak at 24.3% in 2019 but undergoes a marked decline to 14.44% in 2020. Although it recovers partially to 16.78% in 2021, it dips again to 14.65% in 2022. This pattern suggests increased operational or adjusted expenses in recent years affecting the company's profitability from an adjusted perspective.

Overall, the company experiences solid revenue growth while facing challenges in maintaining high profit margins. The fluctuations in both reported and adjusted net incomes and margins reflect varying cost structures or exceptional items impacting annual profitability.

Net Income

The net income showed an overall upward trend from 2018 to 2022. It increased from 238,334 thousand US dollars in 2018 to 369,453 thousand US dollars in 2022, with a notable dip in 2020 at 227,128 thousand US dollars.

Stockholders’ Equity

Stockholders’ equity exhibited consistent growth throughout the period. It rose from 3,021,942 thousand US dollars in 2018 to 6,870,121 thousand US dollars in 2022, indicating expanding equity base and capitalization.

Reported Return on Equity (ROE)

The reported ROE showed variability, starting at 7.89% in 2018, peaking at 9.25% in 2019, then declining significantly to 4.23% in 2020. It partially recovered in subsequent years to 5.12% in 2021 and 5.38% in 2022, but remained below earlier highs.

Adjusted Net Income

Adjusted net income followed a pattern similar to reported net income, increasing from 246,061 thousand US dollars in 2018 to a high of 344,835 thousand US dollars in 2019, dropping to 240,599 thousand US dollars in 2020, and then fluctuating around the 320,000 to 330,000 thousand range in 2021 and 2022.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity mirrored the growth trend of reported equity levels, increasing from 3,141,498 thousand US dollars in 2018 to 7,052,578 thousand US dollars in 2022, supporting the company’s growing capital base.

Adjusted Return on Equity (ROE)

The adjusted ROE showed a pattern similar to the reported ROE but with slightly higher peaks in the early years (7.83% in 2018, 9.68% in 2019) and a lower trough in later years. After dropping to 4.35% in 2020, it increased to 5.57% in 2021 before declining again to 4.55% in 2022, suggesting some volatility in profitability relative to equity.

The financial data reveals several notable trends over the five-year period from the end of 2018 to the end of 2022.

Net Income

Net income displays fluctuation, starting at 238,334 thousand US dollars in 2018 and rising to a peak of 314,963 thousand in 2019. It then declines to 227,128 thousand in 2020 before recovering to 292,564 thousand in 2021 and further increasing to 369,453 thousand in 2022. This pattern suggests some volatility in profitability, with a significant rebound after 2020.

Total Assets

Total assets show consistent growth throughout the period, increasing from 3,312,957 thousand US dollars in 2018 to 8,402,470 thousand in 2022. The most substantial growth is observed between 2019 and 2020, where assets nearly doubled, indicating aggressive asset accumulation or acquisitions during that period.

Reported Return on Assets (ROA)

The reported ROA peaks at 8.17% in 2019, followed by a sharp decline to 3.28% in 2020. It then gradually improves to 4.03% in 2021 and 4.40% in 2022. This trend reflects reduced efficiency in generating profits from assets in 2020, with a moderate recovery thereafter.

Adjusted Net Income

The adjusted net income follows a similar trajectory to the reported net income, starting at 246,061 thousand in 2018, peaking at 344,835 thousand in 2019, then decreasing significantly to 240,599 thousand in 2020. It improves to 329,485 thousand in 2021 but decreases slightly to 320,812 thousand in 2022. This suggests adjustments capture some variations in profitability differently than reported figures, particularly in the last year.

Adjusted Total Assets

Adjusted total assets also consistently increase, from 3,480,275 thousand in 2018 to 8,404,943 thousand in 2022. The trend mirrors the reported total assets, confirming steady balance sheet growth.

Adjusted Return on Assets (ROA)

The adjusted ROA presents a peak of 8.95% in 2019 followed by a marked drop to 3.47% in 2020. It subsequently rises to 4.54% in 2021 but declines to 3.82% in 2022. This pattern indicates variability in operational efficiency after adjustments, with a less consistent recovery compared to reported ROA.

In summary, the company experienced strong asset growth over the period, more than doubling its asset base. Profitability demonstrated volatility, with a peak in 2019, a decline in 2020, and partial recovery afterward. Both reported and adjusted ROA metrics reflect decreased asset productivity in 2020, with adjustments showing a less robust recovery by 2022. The data suggests a period of expansion with challenges in maintaining consistent profitability relative to the growing asset base.