CoStar Group Inc. (NASDAQ:CSGP)

Debt to Equity

From the data starting in June 2020, the debt to equity ratio shows a generally stable pattern with minor fluctuations. It initially decreased from 0.22 in June 2020 to 0.14 in June 2021, then remained steady around 0.14 to 0.18 from September 2021 to March 2023. This indicates a relatively low reliance on debt financing compared to equity, maintaining a conservative capital structure.

Debt to Equity (Including Operating Lease Liability)

This measure closely follows the trend of the standard debt to equity ratio but begins earlier at June 2018 with values near 0.01, signifying minimal lease liabilities at that time. From June 2020 onward, it mirrors the debt to equity ratio closely, stabilizing between 0.15 and 0.19 until the end of 2021, then slightly diminishing towards 0.15 by mid-2023. Lease liabilities appear to have limited impact on the overall leverage profile in recent periods.

Debt to Capital

Beginning in June 2020, the debt to capital ratio demonstrates a modest decline, starting at 0.18 and gradually decreasing to 0.12 by June 2023. This trend suggests a slight reduction in debt as a component of total capital, supporting the observation of a conservative financing approach over time.

Debt to Capital (Including Operating Lease Liability)

The inclusion of operating lease liabilities affects the ratio minimally, with initial values at 0.01 before June 2020. From June 2020 to June 2023, the ratio decreases from 0.18 to 0.13, closely tracking the standard debt to capital ratio. Operating leases thus do not substantially alter the capital composition.

Debt to Assets

Observed from June 2020, this ratio shows a slight downward trend from 0.16 to 0.11 in June 2023, indicating a decreasing proportion of debt relative to total assets. This suggests an improving asset funding structure with less reliance on debt financing over time.

Debt to Assets (Including Operating Lease Liability)

Similar to other ratios that include lease liabilities, this metric starts at 0.01 before June 2020 and follows the trend of the standard debt to assets ratio thereafter. Stability is evident with ratios declining from 0.16 to 0.12 by mid-2023, reinforcing the limited impact of lease obligations on debt measures.

Financial Leverage

Financial leverage remains relatively consistent throughout the entire period from March 2018 to June 2023. The ratio fluctuates narrowly around 1.10 from 2018 to 2019, then increases to around 1.27-1.29 during 2020 and 2021. A slight decline is observed after 2021, settling near 1.22 by mid-2023. This pattern indicates steady equity support in the capital structure, with financial leverage modestly elevated during 2020 and 2021 but stabilizing subsequently.

The data reveals several notable financial trends over the observed quarterly periods. Total debt figures are only available starting from March 31, 2020, and they remain relatively stable around the 987 million US dollars mark, showing a slight incremental trend of minimal increases quarter over quarter. This suggests that the company maintained a steady debt level during the period under consideration, with no significant new borrowings or repayments that materially alter the debt balance.

Stockholders’ equity, on the other hand, demonstrates a consistent upward trajectory throughout the entire timeframe from March 31, 2018, to June 30, 2023. Starting from approximately 2.8 billion US dollars, it grows steadily quarter after quarter, reaching over 7.1 billion US dollars by the latest quarter reported. This reflects a solid expansion of the company’s net assets, indicative of retained earnings growth, possible equity infusions, or both, supporting a strengthening financial position over time.

The debt to equity ratio, available in the periods starting from March 31, 2020, remains relatively low and displays a downward trend overall. Beginning at 0.22, the ratio decreases to around 0.14 by mid-2023. This indicates an improvement in the capital structure, with equity growth outpacing debt accumulation, resulting in lower leverage. Such a trend implies reduced financial risk and possibly greater capacity for future borrowing if necessary.

Total Debt

Stable around 987 million US dollars after March 2020, with minor incremental changes but no significant fluctuations.

Stockholders’ Equity

Consistent and substantial growth from approximately 2.8 billion US dollars in early 2018 to over 7.1 billion US dollars by mid-2023.

Debt to Equity Ratio

Decreasing from 0.22 to 0.14 between March 2020 and June 2023, indicating improved leverage and stronger equity base relative to debt.

Overall, the financial data points to a company experiencing robust equity growth while maintaining a conservative and stable debt level, thereby improving its leverage position and reducing financial risk over the observed periods.

Total Debt (including operating lease liability)

Data is missing for the periods before March 31, 2019. Starting from March 31, 2019, total debt shows a significant jump from the previous values, rising sharply to 772,681 thousand US dollars. Following this substantial increase, the total debt remains relatively stable, fluctuating slightly but generally staying above 1,000,000 thousand US dollars in the periods from September 30, 2020 onward. There is no observable trend of increase or decrease in total debt in the latest quarters, indicating a plateau in debt levels at a high magnitude compared to prior periods.

Stockholders’ Equity

Stockholders’ equity demonstrates a consistent upward trend throughout the entire time span, increasing steadily each quarter. From 2,800,964 thousand US dollars on March 31, 2018, it rises continuously with no interruptions, reaching above 7,000,000 thousand US dollars by June 30, 2023. This consistent growth highlights an accumulation of equity over time, indicating positive retained earnings or capital increases.

Debt to Equity Ratio (including operating lease liability)

Data for the debt to equity ratio starts from June 30, 2018, showing very low values around 0.01 initially. This low ratio remains stable through December 31, 2018, then significantly increases starting March 31, 2019, jumping to 0.22. Thereafter, the ratio decreases over time to about 0.15-0.19 in subsequent quarters, suggesting a relative reduction of debt in proportion to equity. In the latest periods through June 2023, the ratio stabilizes around 0.15, indicating a moderate leverage level maintained consistently.

Overall Financial Position Insights

The data indicates a company transitioning from minimal debt levels to significantly elevated debt as of early 2019, with debt levels maintained at a high plateau thereafter. Despite this debt increase, equity growth continues robustly and steadily, which results in a debt to equity ratio that initially spikes but then settles to a moderate level. This combination implies an increasing capital base alongside higher leverage that is managed without further aggressive debt accumulation. The stability of the debt to equity ratio in recent periods suggests controlled financial risk in relation to equity size.

The data reveals notable trends in the company's debt and capital structure over a six-year period, with quarterly observations from March 2018 through June 2023. A key focus is on total debt, total capital, and the resulting debt-to-capital ratio, which together illustrate changes in financial leverage.

Total Debt

Total debt figures are unavailable prior to the fourth quarter of 2019. Starting at $745 million in Q4 2019, total debt experienced a significant increase to approximately $986 million by Q3 2020. Thereafter, total debt remained relatively stable around $987 million through mid-2023, indicating no substantial additional borrowing or repayment during that period.

Total Capital

Total capital exhibited a persistent upward trend throughout the entire timeline. Beginning at roughly $2.8 billion in the first quarter of 2018, it grew steadily each quarter, showing marked acceleration beginning in 2020. For instance, total capital increased sharply from $3.4 billion in Q4 2019 to over $6.3 billion by Q3 2020. This rapid growth continued more gradually afterwards, reaching over $8.0 billion by Q2 2023. The pattern suggests significant equity financing, retained earnings growth, or a combination thereof, contributing to the expanding capital base.

Debt to Capital Ratio

The ratio data begins at 0.18 in Q4 2019, declining generally over the observed period to 0.12 by Q2 2023. This indicates a decreasing reliance on debt relative to total capital despite the total debt level remaining stable. The drop in leverage ratio primarily reflects the substantial increase in total capital. The ratio's decline from 0.18 to 0.12 is gradual and consistent, which may suggest a deliberate strategy to strengthen the balance sheet by increasing equity or profitability rather than raising additional debt.

In summary, the company maintained a stable absolute debt position from late 2019 onward, while substantially expanding its capital base. This resulted in a notable reduction in financial leverage as indicated by the decreasing debt-to-capital ratio. These trends point to an improving capital structure with lower relative debt risk, potentially enhancing financial flexibility and creditworthiness.

Total Debt (Including Operating Lease Liability)

The total debt shows a significant increase beginning in the period ending March 31, 2020, when debt balances jump from levels around 27,000 to over 772,000 (in thousands of US dollars). From that point onward, total debt maintains a generally stable range slightly above one million thousand dollars, fluctuating marginally but with no substantial decline or increase observed through June 30, 2023.

Total Capital (Including Operating Lease Liability)

Total capital exhibits a clear upward trend throughout the entire timeframe. The values grow steadily from roughly 2.8 million thousand dollars at the start of the period in March 2018, increasing consistently to exceed 8.1 million thousand dollars by June 30, 2023. Of particular note is the rapid growth between December 2019 and June 2020, coinciding with the large increase seen in total debt during the same interval. Post this spike, total capital continues to expand but at a more moderate pace.

Debt to Capital Ratio (Including Operating Lease Liability)

This ratio remains very low (around 0.01) from the earliest observed periods through December 31, 2019, indicating minimal leverage. However, starting March 31, 2020, the ratio jumps sharply to approximately 0.18 and then stabilizes in a range between 0.13 and 0.16 over the following quarters until June 30, 2023. This indicates a substantial increase in leverage associated with the rise in total debt relative to capital, which subsequently settles to a consistent moderate leverage level.

Overall Analysis

The data reveals a notable structural shift in the company’s financial leverage commencing in early 2020, marked by a large increase in total debt and corresponding rise in the debt to capital ratio. This shift corresponds with an accelerated growth phase in total capital. Following this transition, both the debt levels and the leverage ratios remain relatively stable, with total capital exhibiting continuous growth. This pattern suggests an intentional change in financial strategy or capital structure around early 2020, leading to higher but stabilized leverage alongside expanding capital investments or asset base.

Total Debt

Starting from the period ending June 30, 2020, total debt figures become available, showing a consistent level of around 745 million US dollars initially. From September 30, 2020, total debt begins to rise significantly, reaching approximately 987 million US dollars by March 31, 2023. This shows a steady increase in liability over the recent years with minimal fluctuations on a quarterly basis.

Total Assets

Total assets exhibit a clear upward trend over the entire time frame presented. Initial values around 3.1 billion US dollars in early 2018 rise gradually through 2019, followed by a more pronounced and accelerated increase from March 31, 2020 onward. By March 31, 2023, total assets have grown substantially, reaching approximately 8.7 billion US dollars. This growth indicates ongoing asset accumulation and potential expansion in the company's operational scale or investment base.

Debt to Assets Ratio

The debt to assets ratio data is only present from the period ending March 31, 2020. The ratio starts at 0.16 at that time, indicating that debt accounted for 16% of total assets. Thereafter, the ratio declines gradually, falling to about 0.11 by June 30, 2023. This downward movement suggests an improvement in the company’s leverage position, driven mainly by the faster growth in assets relative to debt. It indicates a strengthening balance sheet and a relatively lower reliance on debt financing over the recent years.

Total Debt (Including Operating Lease Liability)

The total debt figures begin reporting from March 31, 2019, showing a relatively stable range from approximately 26,062 thousand US dollars to 29,670 thousand US dollars through December 31, 2019. From March 31, 2020, a substantial increase is observed, with debt jumping sharply to over 772,000 thousand US dollars. Subsequently, total debt fluctuates modestly within a narrow band around 1,015,000 to 1,030,000 thousand US dollars through June 30, 2023. The debt levels appear to have stabilized in the last several reported quarters after this initial surge.

Total Assets

Total assets demonstrate a consistent upward trend throughout the entire period from March 31, 2018, to June 30, 2023. Starting at approximately 3,095,100 thousand US dollars, assets rose steadily quarter over quarter, reaching just under 4 million US dollars by the end of 2019. A significant growth phase is evident from March 31, 2020, onward, with assets increasing sharply to over 4.6 million US dollars, climbing progressively each quarter to exceed 8.6 million US dollars by June 30, 2023. This reflects sustained asset expansion and possibly strategic investments or acquisitions during the period.

Debt to Assets Ratio (Including Operating Lease Liability)

The debt to assets ratio remained extremely low and stable, around 0.01, through the quarters ending December 31, 2019. Beginning March 31, 2020, the ratio increased notably to approximately 0.16, aligned with the large increase in total debt relative to assets. Subsequently, this ratio moderates and stabilizes in the range of 0.12 to 0.15 through mid-2023, indicating that while debt increased, asset growth also expanded, tempering the leverage ratio. This stability in leverage suggests a controlled approach to debt management amidst expanding asset base.

Overall Insights

The data indicates a period of conservative leverage initially, followed by a pronounced increase in debt coinciding with accelerated asset growth beginning in early 2020. The swift escalation in both debt and assets may reflect strategic financial or operational initiatives, such as acquisitions or capital expenditure programs. Despite higher debt levels post-2020, the debt to assets ratio remains moderate and stable, implying effective management of financial risk. The persistent asset growth throughout the timeline underscores a robust expansion strategy.

The analysis of the quarterly financial data reveals a general upward trend in total assets over the observed periods. Starting from approximately $3.1 billion at the end of the first quarter of 2018, total assets exhibit steady growth each quarter, culminating close to $8.7 billion by mid-2023. This indicates consistent asset expansion, with particularly notable increases observed starting from early 2020 through 2023.

Stockholders’ equity follows a similar trajectory of growth. Beginning at roughly $2.8 billion in early 2018, equity increases steadily each quarter, reaching over $7.1 billion by the midpoint of 2023. The growth pace in equity also accelerated around 2020, mirroring the asset growth pattern, suggesting reinvestment or accumulation of retained earnings during this timeframe.

The financial leverage ratio, which represents the ratio of total assets to stockholders’ equity, remains relatively stable throughout the period, mostly fluctuating between 1.1 and 1.3. Initially, it hovers around 1.1, reflecting modest reliance on debt or liabilities. However, from early 2020, there is an observable increase in leverage to as high as 1.35, followed by a gradual return to ranges closer to 1.22 by mid-2023. This suggests a temporary increase in the use of financial leverage likely corresponding to the significant asset growth in 2020, potentially indicating increased borrowing or liabilities that moderated afterward.

Total Assets

Consistent upward trend from approximately $3.1 billion to $8.7 billion over five years.

Sharp growth acceleration observed beginning in early 2020 indicating expansion or asset acquisition.

Stockholders’ Equity

Progressive increase from about $2.8 billion to $7.1 billion in the same period.

Equity growth parallels asset growth, indicating retained earnings accumulation or capital infusion.

Financial Leverage

Ratio predominantly between 1.1 and 1.3, indicating relatively low to moderate leverage.

Peak leverage ratio of 1.35 seen around early 2020 reflects increased reliance on liabilities or debt.

Decline and stabilization near 1.22 in recent quarters suggest normalization of capital structure.

Overall, the data exhibits strong financial growth with sustained expansion of asset base and equity. The temporary rise in financial leverage in 2020 coincides with significant asset increases, indicating strategic use of debt or liabilities during that period, followed by reduced leverage as equity continues to build. These patterns reflect a dynamic but controlled financial posture over the reviewed timeline.