Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Paying user area
Try for free
CoStar Group Inc. pages available for free this week:
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to CoStar Group Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Long-term Activity Ratios (Summary)
CoStar Group Inc., long-term (investment) activity ratios (quarterly data)
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).
The analysis of the quarterly financial ratios reveals several notable trends in the company's operational efficiency and asset management over the observed periods.
- Net Fixed Asset Turnover
-
This ratio shows a declining trend from 2019 through mid-2023. Initially, the values were relatively high, fluctuating between approximately 12 and 15 in 2019 and 2020. However, starting in 2021, the ratio sharply dropped to around 7 and continued a gradual decline, reaching around 6.46 by mid-2023. This decline indicates reduced efficiency in generating sales from net fixed assets over time.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
-
When incorporating operating lease assets, the turnover ratio follows a similar declining trend but starts from a lower base, around 6.3 in early 2019. Fluctuations are observed throughout the periods, with a peak approximately 7.06 towards the end of 2020, followed by a gradual decrease. Values decreased further to about 5.29 by mid-2023. This consistent decline suggests a decreased efficiency in utilizing both owned and leased fixed assets to generate revenue.
- Total Asset Turnover
-
The total asset turnover ratio exhibits modest variability but generally maintains a low and stable level throughout the timeline. It started around 0.35 in early 2019, decreased to as low as 0.23 during mid-2020, likely reflecting operational impacts during that period, and then experienced a slight recovery to stabilize between 0.26 and 0.27 by mid-2023. This level implies relatively low efficiency in using total assets to generate sales, with limited improvement over time.
- Equity Turnover
-
Equity turnover shows moderate fluctuations with an initial value about 0.4 in early 2019, dipping to around 0.29 during mid-2020, and then gradually increasing to about 0.33 by mid-2023. This trend suggests a moderate recovery in the efficiency of using equity to generate revenue after a period of decreased performance, possibly linked to broader economic or operational challenges faced during 2020.
Overall, the data highlights a general decline in asset turnover ratios, especially concerning net fixed assets, which indicates reduced operational efficiency in asset utilization. The total asset turnover remains low with slight recovery post-2020. Equity turnover shows some recovery but remains below initial levels seen in 2019. These patterns may reflect evolving asset structures, changes in operating conditions, or strategic shifts impacting the turnover metrics.
Net Fixed Asset Turnover
CoStar Group Inc., net fixed asset turnover calculation (quarterly data)
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).
1 Q2 2023 Calculation
Net fixed asset turnover
= (RevenuesQ2 2023
+ RevenuesQ1 2023
+ RevenuesQ4 2022
+ RevenuesQ3 2022)
÷ Property and equipment, net
= ( + + + )
÷ =
- Revenue Trends
- Over the observed period, revenues demonstrated a consistent upward trajectory. Beginning at approximately $328 million in early 2019, the revenues gradually increased through each quarter, reaching above $605 million by mid-2023. The growth pattern is steady with no significant declines, indicating sustained business expansion or market demand. The revenue increases appear to accelerate slightly from 2021 onward, signaling potentially enhanced operational performance or market share gains during this phase.
- Property and Equipment, Net
- The net value of property and equipment exhibited notable growth over the same period. Starting near $86 million in early 2019, there is a general upward trend, with occasional periods of relative stability, such as around late 2019 to mid-2020. A significant increase is observed at the start of 2021 where the net property and equipment values jump to nearly $240 million. This upward trend continues steadily through 2023, culminating in a value exceeding $359 million. This increase suggests substantial investment in fixed assets, which may include acquisitions, upgrades, or expansion of physical infrastructure.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures revenue generated per unit of fixed assets, shows a declining trend throughout the period. This ratio started high at around 14.5 in early 2019 and decreased sharply by 2021, stabilizing at roughly between 6.5 and 7 thereafter. The decline indicates that revenue growth is not keeping pace proportionally with the increase in fixed assets. This may point to a decreasing efficiency in utilizing fixed assets to generate sales, potentially reflecting higher capital intensity, recent investments that have not yet fully translated into revenue, or operational inefficiencies.
- Summary of Insights
- The overall financial data indicates steady revenue growth accompanied by significant capital asset investment. However, the diminishing net fixed asset turnover ratio suggests that the incremental assets have not proportionally increased revenue. This could warrant further investigation into asset utilization and operational efficiency to optimize returns on capital investments. Nonetheless, the consistent revenue increase suggests positive market or operational momentum despite the dilution in turnover efficiency.
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)
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).
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)
= ( + + + )
÷ =
- Revenue Trends
- Revenues exhibited a consistent upward trend over the period analyzed. From the first quarter of 2019 through the second quarter of 2023, revenues increased steadily from approximately $328.4 million to $605.9 million. This represents a near doubling of revenues in just over four years, indicating strong top-line growth.
- Property and Equipment, Net
- The net value of property and equipment, including operating lease right-of-use assets, showed a general upward trajectory as well. Starting near $198 million at the beginning of 2019, the balance saw some minor fluctuations early on but notably increased from early 2021 onward. By mid-2023, the net property and equipment value reached approximately $439 million, more than doubling since the initial period. This suggests ongoing capital investment or asset acquisition over time, with significant growth observed particularly from 2020 to 2023.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures how efficiently fixed assets generate revenue, started high at 6.3 in the first quarter of 2019. It increased moderately in 2019 and 2020, peaking around 7.06 at the end of 2020. However, from 2021 onward, the ratio declined noticeably, fluctuating between approximately 5.0 and 5.5 through mid-2023. This declining trend suggests that while revenues increased substantially, the asset base grew at a faster rate, resulting in decreased asset turnover efficiency over the last several quarters.
- Overall Financial Insights
- The company demonstrated robust revenue growth throughout the analyzed quarters. Concurrently, an expanding asset base indicates significant investment in property and equipment, likely to support the growing business scale. Despite these positive revenue trends, the declining net fixed asset turnover ratio highlights a potential reduction in asset utilization efficiency. This pattern may merit further investigation to understand whether capital expenditures are translating effectively into increased operational productivity and to identify opportunities for asset optimization.
Total Asset Turnover
CoStar Group Inc., total asset turnover calculation (quarterly data)
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).
1 Q2 2023 Calculation
Total asset turnover
= (RevenuesQ2 2023
+ RevenuesQ1 2023
+ RevenuesQ4 2022
+ RevenuesQ3 2022)
÷ Total assets
= ( + + + )
÷ =
The financial performance over the analyzed quarters exhibits several notable trends. Revenues demonstrate a consistent upward trajectory, increasing steadily from approximately $328 million in the first quarter of 2019 to over $605 million by the second quarter of 2023. This indicates sustained growth in the company's sales or service income over the period.
Total assets also show an overall increasing pattern but with more pronounced fluctuations. Total assets grew from about $3.55 billion in early 2019 to reach peaks above $8.4 billion by mid-2023. The most significant asset increases occurred in 2020, where assets jumped sharply from around $4.7 billion in the first quarter to approximately $6.9 billion by the end of the year. Subsequent quarters show continued asset growth but at a more moderate pace, suggesting major investments or acquisitions may have occurred in 2020.
The total asset turnover ratio, which measures the efficiency of using assets to generate revenue, reveals a decline during the early part of the period studied. Starting at 0.35 in the first quarter of 2019, the ratio dropped to a low of around 0.23 in mid to late 2020. This decline coincides with the sharp increase in total assets, indicating that asset growth outpaced revenue gains in that timeframe. From 2021 onward, the asset turnover ratio gradually improved, reaching about 0.27 by the second quarter of 2023, suggesting better utilization of assets to generate revenues in recent periods.
In summary, the company experienced consistent revenue growth throughout the period, significant asset expansion mainly in 2020, and a temporary reduction in asset efficiency followed by a gradual recovery in asset turnover. These trends suggest a phase of substantial investment or expansion efforts impacting asset bases, with operational efficiency showing signs of improvement subsequently.
- Revenues
- Steady growth from $328 million in early 2019 to over $605 million by mid-2023.
- Total Assets
- Substantial increase from approximately $3.55 billion to around $8.7 billion, with major asset growth in 2020.
- Total Asset Turnover Ratio
- Decreased from 0.35 to as low as 0.23 during 2020, improving to 0.27 by mid-2023, indicating initial decreased asset efficiency followed by gradual recovery.
Equity Turnover
CoStar Group Inc., equity turnover calculation (quarterly data)
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).
1 Q2 2023 Calculation
Equity turnover
= (RevenuesQ2 2023
+ RevenuesQ1 2023
+ RevenuesQ4 2022
+ RevenuesQ3 2022)
÷ Stockholders’ equity
= ( + + + )
÷ =
The financial data exhibits a general upward trend in revenues, stockholders’ equity, and a fluctuating pattern in equity turnover over the examined periods.
- Revenues
- Revenues have consistently increased from March 31, 2019, to June 30, 2023. Starting at approximately $328 million, revenues rose gradually each quarter, reaching about $606 million by the most recent period. This steady growth suggests positive operational performance and possibly expanding market demand or enhanced sales capabilities.
- Stockholders’ Equity
- Stockholders’ equity also shows a notable upward movement over the timeline. From nearly $3.13 billion at the beginning of the period, equity increased markedly in June 30, 2020, and subsequent quarters, rising to approximately $7.1 billion by June 30, 2023. The sharp increase observed around mid-2020 may indicate a capital raise, retained earnings accumulation, or asset revaluation contributing significantly to the equity base.
- Equity Turnover
- Equity turnover demonstrates variability but remains within a narrow range. Initially stable around 0.40 to 0.42 in the earlier periods, it sharply declined to approximately 0.29-0.31 during mid-2020, coinciding with the sharp rise in equity. Following this drop, equity turnover gradually improved to around 0.33 by mid-2023 but did not return to the earlier levels. This decline and subsequent recovery reflect changes in the relationship between revenue growth and the expanding equity base, possibly indicating that equity grew faster than revenues during certain intervals.
In summary, the data reflects consistent revenue growth alongside significant equity expansion, with equity turnover responding to these changes by decreasing amid rapid equity growth and stabilizing as the growth dynamics evolved. These patterns suggest effective growth management with possible strategic financial activities impacting equity size.