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 Long-term (Investment) Activity Ratios 
Quarterly Data

Microsoft Excel

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Long-term Activity Ratios (Summary)

CoStar Group Inc., long-term (investment) activity 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
Net fixed asset turnover 6.46 6.80 6.79 6.91 6.90 7.06 7.16 7.88 7.56 7.20 13.13 12.49 14.54 13.75 13.02 12.41 15.30 14.50 14.31 — — —
Net fixed asset turnover (including operating lease, right-of-use asset) 5.29 5.53 5.43 5.28 5.19 5.28 5.22 5.46 5.04 5.22 7.06 6.80 6.99 6.67 6.29 6.28 6.61 6.30 14.31 — — —
Total asset turnover 0.27 0.26 0.26 0.26 0.28 0.27 0.27 0.26 0.26 0.25 0.24 0.23 0.23 0.31 0.36 0.36 0.36 0.35 0.36 — — —
Equity turnover 0.33 0.32 0.32 0.32 0.35 0.35 0.34 0.34 0.33 0.32 0.31 0.30 0.29 0.42 0.41 0.41 0.40 0.40 0.39 — — —

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).

Net Fixed Asset Turnover
The net fixed asset turnover ratio displayed a declining trend over the observed periods. Starting from relatively high levels around 14.31 in late 2018, the ratio experienced fluctuations but generally decreased to approximately 6.46 by mid-2023. This notable reduction indicates a lower efficiency in generating revenue from fixed assets over time.
Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
When considering operating leases and right-of-use assets, the net fixed asset turnover ratio also declined, albeit from a lower base. Initial values near 14.31 dropped sharply to around 5.29 by mid-2023. The inclusion of lease assets consistently lowered the turnover ratios, suggesting that leased assets impacted the asset base and turnover measurement. Nonetheless, the ratio remained relatively stable with minor fluctuations in the latter periods.
Total Asset Turnover
Total asset turnover remained relatively stable across the quarters, fluctuating modestly between 0.23 and 0.36. The ratio held near 0.36 during 2018 and early 2019, but then experienced a decline to approximately 0.23 in late 2019 and 2020. A slight recovery followed, with values mostly ranging between 0.25 and 0.28 from 2021 onwards. This stability suggests consistent asset utilization to generate sales, despite some short-term drops.
Equity Turnover
Equity turnover showed a mild upward trend from about 0.39 in early 2018 to a peak near 0.42 in mid-2019. Subsequently, the ratio decreased markedly to the 0.29-0.32 range by late 2019 and early 2020, followed by a gradual recovery to approximately 0.33 by mid-2023. This pattern indicates variability in the efficiency of equity in generating revenue, with some improvement observed in recent periods.

Net Fixed Asset Turnover

CoStar Group Inc., net fixed asset turnover 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)
Revenues 605,906 584,366 573,345 556,921 536,308 515,825 506,786 499,319 480,333 457,697 444,393 425,620 397,159 391,847 374,726 352,808 343,760 328,425 315,571 305,525 297,018 273,718
Property and equipment, net 359,455 330,836 321,250 306,319 298,361 283,718 271,431 238,866 239,125 239,480 126,325 127,280 104,316 106,409 107,529 107,989 84,518 85,978 83,303 81,937 84,648 83,401
Long-term Activity Ratio
Net fixed asset turnover1 6.46 6.80 6.79 6.91 6.90 7.06 7.16 7.88 7.56 7.20 13.13 12.49 14.54 13.75 13.02 12.41 15.30 14.50 14.31 — — —

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
Net fixed asset turnover = (RevenuesQ2 2023 + RevenuesQ1 2023 + RevenuesQ4 2022 + RevenuesQ3 2022) ÷ Property and equipment, net
= (605,906 + 584,366 + 573,345 + 556,921) ÷ 359,455 = 6.46

The quarterly financial data reveals several significant trends in the company’s key metrics over the observed periods.

Revenues
The revenue figures show a consistent upward trend throughout the entire timeframe. Starting from approximately $273.7 million at the end of Q1 2018, revenues increased steadily each quarter, reaching about $605.9 million by Q2 2023. This represents more than a doubling of revenue over roughly five years, indicating strong growth momentum. Quarterly increases are generally consistent, with no evident declines or stagnation periods, implying sustained demand or expansion of business activities.
Property and Equipment, Net
The net property and equipment values exhibit a generally increasing pattern with some notable fluctuations. Initial values hover around $83 million during early 2018, with minor variation until a marked increase occurs in late 2020 and into 2021. The asset base more than doubles from about $126 million in Q4 2020 to nearly $239 million by Q1 2021. This abrupt rise suggests significant investments or acquisitions in fixed assets. From 2021 onwards, the asset values continue to increase steadily, reaching approximately $359.5 million by mid-2023. The continuous growth in property and equipment indicates ongoing capital expenditure, possibly supporting expansion or modernization efforts.
Net Fixed Asset Turnover Ratio
The net fixed asset turnover ratio presents a declining trend over the analyzed periods. Early values around 14.31 to 15.3 (mostly observed around 2018-2019) gradually decrease to levels between 6.46 and 7.88 in subsequent years, especially noticeable from 2020 onward. This decline in turnover ratio suggests that revenues generated per unit of fixed asset value are diminishing. Such a trend could indicate that new asset additions are growing faster than revenue or that the efficiency of asset utilization is decreasing. Despite increasing assets and revenues, the relative productivity of fixed assets appears to be lessening.

In summary, the company demonstrates robust revenue growth alongside a substantial increase in net property and equipment assets. However, the decreasing net fixed asset turnover ratio signals that the added asset base is not translating into proportional revenue increases at the same rate, hinting at potential operational efficiency challenges or a strategic shift towards asset-heavy investments.

Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)

CoStar Group Inc., net fixed asset turnover (including operating lease, right-of-use asset) 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)
Revenues 605,906 584,366 573,345 556,921 536,308 515,825 506,786 499,319 480,333 457,697 444,393 425,620 397,159 391,847 374,726 352,808 343,760 328,425 315,571 305,525 297,018 273,718
 
Property and equipment, net 359,455 330,836 321,250 306,319 298,361 283,718 271,431 238,866 239,125 239,480 126,325 127,280 104,316 106,409 107,529 107,989 84,518 85,978 83,303 81,937 84,648 83,401
Lease right-of-use assets 79,491 76,174 80,392 94,262 98,495 95,555 100,680 105,964 119,290 90,949 108,740 106,320 112,641 112,811 115,084 105,516 111,004 112,042 — — — —
Property and equipment, net (including operating lease, right-of-use asset) 438,946 407,010 401,642 400,581 396,856 379,273 372,111 344,830 358,415 330,429 235,065 233,600 216,957 219,220 222,613 213,505 195,522 198,020 83,303 81,937 84,648 83,401
Long-term Activity Ratio
Net fixed asset turnover (including operating lease, right-of-use asset)1 5.29 5.53 5.43 5.28 5.19 5.28 5.22 5.46 5.04 5.22 7.06 6.80 6.99 6.67 6.29 6.28 6.61 6.30 14.31 — — —

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
Net fixed asset turnover (including operating lease, right-of-use asset) = (RevenuesQ2 2023 + RevenuesQ1 2023 + RevenuesQ4 2022 + RevenuesQ3 2022) ÷ Property and equipment, net (including operating lease, right-of-use asset)
= (605,906 + 584,366 + 573,345 + 556,921) ÷ 438,946 = 5.29

The analysis of the quarterly financial data reveals several key trends in revenues, property and equipment, and net fixed asset turnover over the period from March 2018 to June 2023.

Revenues

Revenues exhibit a consistent upward trend across all quarters, starting from approximately $273.7 million in March 2018 and increasing steadily to about $605.9 million by June 2023. The growth appears relatively stable with no significant volatility, reflecting sustained business expansion or improved revenue generation capabilities over the analyzed period.

Property and Equipment, Net (including operating lease, right-of-use asset)

This asset category shows significant growth, nearly doubling from around $83.4 million in March 2018 to approximately $439.0 million by June 2023. The data indicate a substantial increase starting around March 2019, when the value jumped from approximately $83 million to nearly $198 million, suggesting a major capital investment or a change in accounting for leases. Following this jump, the asset base continues to grow steadily, implying ongoing investments or acquisitions in fixed assets.

Net Fixed Asset Turnover (including operating lease, right-of-use asset)

The net fixed asset turnover ratio, available from late 2018 onwards, shows a declining trend overall. Initially, the ratio was relatively high at 14.31, decreasing sharply to values between 5.0 and 7.1 in subsequent quarters. From 2019 through mid-2023, the ratio stabilizes somewhat, fluctuating between approximately 5.0 and 6.0. This reduction likely reflects the rapid increase in fixed assets, which has outpaced the revenue growth rate, resulting in lower asset turnover efficiency.

Total Asset Turnover

CoStar Group Inc., total asset turnover 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)
Revenues 605,906 584,366 573,345 556,921 536,308 515,825 506,786 499,319 480,333 457,697 444,393 425,620 397,159 391,847 374,726 352,808 343,760 328,425 315,571 305,525 297,018 273,718
Total assets 8,691,674 8,516,912 8,402,470 8,205,863 7,420,748 7,357,442 7,256,871 7,131,316 7,075,614 6,941,971 6,915,420 6,797,325 6,479,030 4,684,597 3,853,986 3,715,391 3,620,598 3,548,284 3,312,957 3,207,222 3,122,574 3,095,100
Long-term Activity Ratio
Total asset turnover1 0.27 0.26 0.26 0.26 0.28 0.27 0.27 0.26 0.26 0.25 0.24 0.23 0.23 0.31 0.36 0.36 0.36 0.35 0.36 — — —

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
Total asset turnover = (RevenuesQ2 2023 + RevenuesQ1 2023 + RevenuesQ4 2022 + RevenuesQ3 2022) ÷ Total assets
= (605,906 + 584,366 + 573,345 + 556,921) ÷ 8,691,674 = 0.27

Revenues
Revenues demonstrate a consistent upward trend from March 31, 2018, through June 30, 2023. Starting at approximately 273.7 million USD, revenues increased steadily each quarter, reaching over 605.9 million USD by the last reported date. The growth pattern is continuous without noticeable declines, indicating steady business expansion and increasing sales performance across all periods analyzed.
Total Assets
Total assets reflect a notable growth trajectory over the same timeframe. Initially recorded near 3.1 billion USD in March 2018, the assets increased substantially, showing an accelerated rise particularly from March 2020 onward, peaking at around 8.7 billion USD in June 2023. The growth between quarters during the 2020 period is especially pronounced, suggesting significant asset acquisitions or balance sheet expansions during that interval.
Total Asset Turnover
The total asset turnover ratio, available from September 2018 onwards, displays a generally declining trend initially, dropping from 0.36 down to 0.23 by September 2020. This indicates a reduced efficiency in generating revenues from assets during this period. After this low point, the ratio gradually improves back toward 0.27 by June 2023 but remains below earlier levels. This pattern suggests that while asset base growth was strong, revenue generation per unit of asset usage experienced some pressure, then modest recovery, reflecting ongoing adjustments in operational efficiency or investment scale.
Overall Analysis
The combined data suggests that while the company has expanded its asset base considerably, presumably for future growth initiatives, revenue growth has been steady but has not fully kept pace proportionally with the increase in total assets. The recovery in asset turnover ratio in recent quarters may imply improvements in asset utilization effectiveness or stabilization after a period of strategic investment. This trend merits close monitoring to ensure the expanded assets translate into proportional top-line growth and efficiency gains over time.

Equity Turnover

CoStar Group Inc., equity turnover 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)
Revenues 605,906 584,366 573,345 556,921 536,308 515,825 506,786 499,319 480,333 457,697 444,393 425,620 397,159 391,847 374,726 352,808 343,760 328,425 315,571 305,525 297,018 273,718
Stockholders’ equity 7,101,072 6,965,609 6,870,121 6,706,912 5,884,353 5,797,298 5,711,672 5,603,423 5,527,227 5,446,925 5,375,359 5,318,058 5,224,321 3,462,811 3,405,593 3,299,166 3,204,071 3,128,614 3,021,942 2,928,314 2,850,618 2,800,964
Long-term Activity Ratio
Equity turnover1 0.33 0.32 0.32 0.32 0.35 0.35 0.34 0.34 0.33 0.32 0.31 0.30 0.29 0.42 0.41 0.41 0.40 0.40 0.39 — — —

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
Equity turnover = (RevenuesQ2 2023 + RevenuesQ1 2023 + RevenuesQ4 2022 + RevenuesQ3 2022) ÷ Stockholders’ equity
= (605,906 + 584,366 + 573,345 + 556,921) ÷ 7,101,072 = 0.33

The quarterly financial data reveal a general upward trend in revenues over the observed periods. Revenues increased consistently from approximately $273.7 million in March 2018 to around $605.9 million by June 2023. This steady growth reflects sustained operational expansion or improved market conditions contributing to revenue generation.

Stockholders’ equity demonstrates a significant increase over time as well, beginning at roughly $2.8 billion in March 2018 and reaching approximately $7.1 billion by June 2023. Notably, there is a sharp rise in equity around June 2020, jumping from about $3.46 billion in March 2020 to over $5.2 billion in June 2020. This substantial increase could be attributed to equity financing, asset revaluation, or retained earnings accumulation. Following this spike, stockholders’ equity continued a steady upward trajectory, indicating consistent capital growth or reinvestment.

Equity turnover ratios, available from the period ending September 2018 onward, exhibit moderate fluctuation within a narrow range. From September 2018 to June 2019, the ratio remained stable around 0.39 to 0.42, suggesting a relatively consistent efficiency in using equity to generate revenues. However, from September 2019 through September 2020, the ratio declined notably to a low of 0.29, indicating a temporary decrease in asset turnover or operational efficiency relative to equity. Post this period, equity turnover gradually improved and stabilized around 0.32 to 0.35, maintaining this level through June 2023. This pattern may imply adjustments in capital deployment or changes in asset utilization strategies returning to more balanced efficiency.

Overall, the financial indicators depict a company experiencing steady revenue growth and an expanding equity base, with some variations in efficiency measured by equity turnover. The significant increase in stockholders’ equity in mid-2020 and the accompanying temporary dip in equity turnover suggest noteworthy corporate events or strategic shifts during that interval.

Revenue Trend
Consistent growth from $273.7 million in early 2018 to $605.9 million in mid-2023.
Stockholders’ Equity Trend
Substantial rise from $2.8 billion in early 2018 to $7.1 billion in mid-2023, with a notable increase in mid-2020.
Equity Turnover Ratio
Stable around 0.39-0.42 until mid-2019, dip to 0.29-0.31 in late 2019 to mid-2020, followed by gradual recovery and stabilization around 0.32-0.35 through mid-2023.