Stock Analysis on Net
Stock Analysis on Net

CoStar Group Inc. (NASDAQ:CSGP)

This company has been moved to the archive! The financial data has not been updated since July 26, 2023.

Analysis of Liquidity Ratios 
Quarterly Data

Microsoft Excel

Liquidity ratios measure the company ability to meet its short-term obligations.

Liquidity Ratios (Summary)

CoStar Group Inc., liquidity ratios (quarterly data)

Microsoft Excel
Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Current ratio 12.30 13.21 13.92 15.36 11.95 11.08 11.78 12.18 11.62 13.17 11.75 16.35 14.01 8.75 5.79 7.60 7.17 6.79 7.87 7.68 7.37 6.23
Quick ratio 12.17 13.06 13.75 15.10 11.76 10.98 11.67 12.06 11.51 13.10 11.67 16.21 13.90 8.62 5.62 7.48 7.06 6.69 7.72 7.52 7.10 6.04
Cash ratio 11.76 12.61 13.33 14.65 11.33 10.61 11.30 11.70 11.18 12.72 11.35 15.78 13.47 8.15 5.17 7.02 6.58 6.22 7.14 6.98 6.62 5.62

Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

Current Ratio
The current ratio exhibits a generally strong liquidity position throughout the periods analyzed, consistently maintaining values well above 5. From March 2018 to December 2019, it fluctuated between 5.79 and 7.87, indicating a stable ability to cover short-term liabilities with current assets. Beginning in March 2020, a marked increase is observed, peaking at 16.35 in September 2020. This spike suggests a significant build-up in current assets or a reduction in current liabilities during this period. Following the peak, the ratio declines but stabilizes in a higher range between approximately 11 and 15 from 2021 to mid-2023, indicating sustained strong liquidity after the spike.
Quick Ratio
The quick ratio mirrors the trend of the current ratio with consistently high values, confirming strong short-term liquidity excluding inventory. It ranges between 5.62 and 7.72 prior to 2020, demonstrating consistent liquidity strength. Similar to the current ratio, there is a pronounced increase beginning in March 2020, reaching a peak of 16.21 in September 2020. Post-2020, it stabilizes at elevated levels (11 to 15 approximately), suggesting that the company maintained a considerable liquid asset base excluding inventories to cover immediate obligations.
Cash Ratio
The cash ratio follows a trend comparable to both the current and quick ratios but is systematically lower, reflecting the portion of liquidity held strictly as cash and cash equivalents. Initially ranging from 5.17 to 7.14 before 2020, it rises sharply starting in March 2020, peaking at 15.78 in September 2020, indicating a substantial increase in cash reserves relative to current liabilities. Although there is a decline from this peak, the ratio remains significantly higher in subsequent periods, stabilizing around 11 to 14, which reflects ongoing strong cash coverage of short-term liabilities.
Overall Analysis
Across all liquidity measures, there is a distinct upward shift beginning in early 2020, culminating in peaks around the third quarter of 2020. This suggests a strategic accumulation of current assets and particularly cash, potentially reflecting a conservative liquidity management approach in response to external market uncertainties. In the periods following this peak, liquidity ratios moderate but remain elevated compared to pre-2020 levels, indicating sustained higher liquidity buffers. The consistently high levels across all three ratios imply a strong capacity to meet short-term financial obligations without reliance on inventory liquidation or additional financing.

Current Ratio

CoStar Group Inc., current ratio calculation (quarterly data)

Microsoft Excel
Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in thousands)
Current assets 5,444,884 5,297,636 5,185,867 5,006,587 4,180,761 4,100,258 3,988,125 3,914,837 3,817,931 3,822,327 3,888,512 4,007,233 3,690,648 2,070,390 1,199,165 1,504,722 1,413,762 1,346,371 1,213,298 1,179,268 1,075,985 1,032,004
Current liabilities 442,775 401,021 372,615 325,906 349,950 370,195 338,689 321,517 328,678 290,135 330,850 245,111 263,365 236,679 207,056 198,036 197,260 198,227 154,159 153,470 145,920 165,643
Liquidity Ratio
Current ratio1 12.30 13.21 13.92 15.36 11.95 11.08 11.78 12.18 11.62 13.17 11.75 16.35 14.01 8.75 5.79 7.60 7.17 6.79 7.87 7.68 7.37 6.23

Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q2 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 5,444,884 ÷ 442,775 = 12.30

Current Assets
The current assets demonstrate a generally upward trend over the observed periods. Starting at approximately 1.03 billion in the first quarter of 2018, current assets increased steadily with some fluctuations. A notable surge occurs in the first half of 2020, where current assets nearly doubled from the previous quarter, peaking around 4 billion by the end of 2020. From 2021 onward, the current assets continued to grow but at a more moderate pace, reaching over 5.4 billion by mid-2023. This steady increase reflects a growing asset base capable of supporting short-term liabilities.
Current Liabilities
Current liabilities exhibit a gradual increase throughout the period. Starting just below 166 million in early 2018, liabilities rise moderately, with a more noticeable increase during 2020. Although some quarters show minor decreases, the overall trend continues upward, peaking at approximately 443 million in mid-2023. Despite this growth in liabilities, the increase is significantly outpaced by the growth of current assets.
Current Ratio
The current ratio remains consistently strong and well above the typical benchmark of 1, indicating robust short-term liquidity. Initially around 6.23 in early 2018, the ratio tends to fluctuate between approximately 6.8 and 7.9 until late 2019. A substantial spike is observed commencing in 2020, where the ratio jumps dramatically, reaching values above 14 and at times exceeding 16. This peak suggests an extraordinarily high level of current assets relative to current liabilities during that period. Following this spike, the ratio moderates but remains high, fluctuating mainly between 11 and 15 through mid-2023, which underscores sustained strong liquidity and an improving financial buffer to cover short-term obligations.

Quick Ratio

CoStar Group Inc., quick ratio calculation (quarterly data)

Microsoft Excel
Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in thousands)
Cash and cash equivalents 5,205,295 5,055,646 4,967,970 4,774,465 3,964,116 3,929,097 3,827,126 3,761,587 3,674,909 3,690,296 3,755,912 3,867,805 3,548,405 1,927,923 1,070,731 1,389,619 1,297,812 1,232,817 1,100,416 1,071,786 966,278 931,429
Accounts receivable, net 181,213 181,758 153,945 147,770 152,173 134,978 124,817 115,651 108,269 109,798 103,949 105,014 113,667 112,248 92,240 91,325 95,583 92,841 89,192 82,279 69,984 68,914
Total quick assets 5,386,508 5,237,404 5,121,915 4,922,235 4,116,289 4,064,075 3,951,943 3,877,238 3,783,178 3,800,094 3,859,861 3,972,819 3,662,072 2,040,171 1,162,971 1,480,944 1,393,395 1,325,658 1,189,608 1,154,065 1,036,262 1,000,343
 
Current liabilities 442,775 401,021 372,615 325,906 349,950 370,195 338,689 321,517 328,678 290,135 330,850 245,111 263,365 236,679 207,056 198,036 197,260 198,227 154,159 153,470 145,920 165,643
Liquidity Ratio
Quick ratio1 12.17 13.06 13.75 15.10 11.76 10.98 11.67 12.06 11.51 13.10 11.67 16.21 13.90 8.62 5.62 7.48 7.06 6.69 7.72 7.52 7.10 6.04

Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q2 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 5,386,508 ÷ 442,775 = 12.17

Total Quick Assets
The total quick assets exhibit an overall increasing trend from March 31, 2018 to June 30, 2023. Initially, the values gradually rise from approximately 1,000 million USD in early 2018 to about 1,480 million USD by the third quarter of 2019, with a notable dip observed in the fourth quarter of 2019. Starting in the first quarter of 2020, total quick assets increase sharply, reaching over 5,200 million USD by the first quarter of 2023 and continuing upwards into mid-2023. The period from early 2020 to mid-2023 portrays substantial growth in liquidity resources, indicating increasing availability of highly liquid assets.
Current Liabilities
Current liabilities also present an upward trajectory over the analyzed timeframe. Beginning around 166 million USD in the first quarter of 2018, current liabilities gradually increase, peaking around 207 million USD at the end of 2019. From 2020 onward, current liabilities continue to grow at a steadier pace, reaching approximately 443 million USD by the second quarter of 2023. This trend suggests rising short-term obligations consistent with expansion or increased operational activities.
Quick Ratio
The quick ratio indicates significant variability but remains consistently above 5.5, reflecting strong short-term liquidity throughout the period. Initially, the ratio increases from 6.04 in early 2018 to a peak of 7.72 in late 2018, followed by a decline to around 5.62 at the end of 2019, coinciding with the dip in total quick assets. From the first quarter of 2020, the quick ratio experiences notable increases, reaching a high of approximately 16.21 in the third quarter of 2020, indicating an exceptionally strong liquidity position during this period. Subsequently, the ratio decreases but remains elevated, fluctuating between roughly 10.98 and 15.1 through 2022 and early 2023, demonstrating continued ample liquidity relative to current liabilities.
Summary of Trends and Insights
The data reveals robust growth in total quick assets and a marked increase in current liabilities over the observed quarters, reflecting expanding operational scale or increased short-term financial activities. The quick ratio exhibits periods of strong liquidity, particularly pronounced during 2020, possibly indicating conservative liquidity management or accumulation of liquid reserves amid uncertain market conditions. Despite fluctuations, liquidity remains strong throughout the period. The significant rise in quick assets relative to current liabilities suggests an improving short-term financial strength and capacity to meet immediate obligations. These patterns collectively point to enhanced liquidity resilience in the recent years.

Cash Ratio

CoStar Group Inc., cash ratio calculation (quarterly data)

Microsoft Excel
Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in thousands)
Cash and cash equivalents 5,205,295 5,055,646 4,967,970 4,774,465 3,964,116 3,929,097 3,827,126 3,761,587 3,674,909 3,690,296 3,755,912 3,867,805 3,548,405 1,927,923 1,070,731 1,389,619 1,297,812 1,232,817 1,100,416 1,071,786 966,278 931,429
Total cash assets 5,205,295 5,055,646 4,967,970 4,774,465 3,964,116 3,929,097 3,827,126 3,761,587 3,674,909 3,690,296 3,755,912 3,867,805 3,548,405 1,927,923 1,070,731 1,389,619 1,297,812 1,232,817 1,100,416 1,071,786 966,278 931,429
 
Current liabilities 442,775 401,021 372,615 325,906 349,950 370,195 338,689 321,517 328,678 290,135 330,850 245,111 263,365 236,679 207,056 198,036 197,260 198,227 154,159 153,470 145,920 165,643
Liquidity Ratio
Cash ratio1 11.76 12.61 13.33 14.65 11.33 10.61 11.30 11.70 11.18 12.72 11.35 15.78 13.47 8.15 5.17 7.02 6.58 6.22 7.14 6.98 6.62 5.62

Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q2 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 5,205,295 ÷ 442,775 = 11.76

The analysis of the quarterly financial data over the observed period reveals several notable trends in cash assets, current liabilities, and liquidity as measured by the cash ratio.

Total Cash Assets
The total cash assets show an overall upward trajectory from March 2018 through June 2023. Starting at approximately $931 million in the first quarter of 2018, cash assets grew steadily, with a marked acceleration beginning in early 2020, coinciding with the onset of the COVID-19 pandemic. Specifically, cash assets surged from around $1.07 billion in December 2019 to peaks exceeding $5.2 billion by the second quarter of 2023. This substantial increase suggests enhanced liquidity reserves, potentially reflecting strategic cash accumulation or increased operating cash flows during this period.
Current Liabilities
Current liabilities exhibited a more variable pattern with moderate growth over the same timeframe. Beginning at approximately $166 million in March 2018, liabilities fluctuated but showed an upward trend, rising to about $443 million by June 2023. Notable increases occurred in the early quarters of 2020 and again in mid-2023. This growth in liabilities is considerably more moderate in scale compared to the increase in cash assets, indicating potential management of short-term obligations alongside growing liquidity.
Cash Ratio
The cash ratio, representing the proportion of cash and cash equivalents to current liabilities, confirms the enhanced liquidity position over time. From a ratio above 5.6 in March 2018, the ratio consistently increased, peaking at 15.78 in September 2020. Although some fluctuations occurred thereafter, the ratio remained elevated, generally ranging between 11 and 14 through mid-2023. This sustained high ratio indicates a strong liquidity buffer, with cash assets comfortably covering current liabilities multiple times over, which may imply a conservative liquidity strategy or preparation for uncertain market conditions.

In summary, the data reflects a company with significantly growing cash reserves far outpacing the growth in current liabilities, resulting in a strong and improving cash ratio. This indicates robust liquidity management over the reviewed periods, with considerable cash accumulation especially since 2020, potentially positioning the company well for operational flexibility and resilience against short-term financial risks.