Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
CoStar Group Inc., solvency ratios
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | CoStar Group Inc. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | CoStar Group Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | CoStar Group Inc. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | CoStar Group Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | CoStar Group Inc. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | CoStar Group Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | CoStar Group Inc. financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | CoStar Group Inc. interest coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | CoStar Group Inc. fixed charge coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Equity
CoStar Group Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Long-term debt, net | 989,210) | 987,944) | 986,715) | —) | —) | |
| Total debt | 989,210) | 987,944) | 986,715) | —) | —) | |
| Stockholders’ equity | 6,870,121) | 5,711,672) | 5,375,359) | 3,405,593) | 3,021,942) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.14 | 0.17 | 0.18 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Cintas Corp. | 0.85 | 0.69 | 0.79 | 0.95 | — | |
| Debt to Equity, Industry | ||||||
| Industrials | 1.41 | 1.36 | 1.80 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 989,210 ÷ 6,870,121 = 0.14
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | CoStar Group Inc. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Equity (including Operating Lease Liability)
CoStar Group Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Long-term debt, net | 989,210) | 987,944) | 986,715) | —) | —) | |
| Total debt | 989,210) | 987,944) | 986,715) | —) | —) | |
| Current portion of operating lease liabilities | 36,049) | 26,268) | 32,648) | 29,670) | —) | |
| Long-term operating lease liabilities (located in Lease and other long-term liabilities) | 76,007) | 99,370) | 105,329) | 120,153) | —) | |
| Total debt (including operating lease liability) | 1,101,266) | 1,113,582) | 1,124,692) | 149,823) | —) | |
| Stockholders’ equity | 6,870,121) | 5,711,672) | 5,375,359) | 3,405,593) | 3,021,942) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.16 | 0.19 | 0.21 | 0.04 | 0.00 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Cintas Corp. | 0.90 | 0.74 | 0.84 | 0.95 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Industrials | 1.58 | 1.52 | 1.98 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 1,101,266 ÷ 6,870,121 = 0.16
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | CoStar Group Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital
CoStar Group Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Long-term debt, net | 989,210) | 987,944) | 986,715) | —) | —) | |
| Total debt | 989,210) | 987,944) | 986,715) | —) | —) | |
| Stockholders’ equity | 6,870,121) | 5,711,672) | 5,375,359) | 3,405,593) | 3,021,942) | |
| Total capital | 7,859,331) | 6,699,616) | 6,362,074) | 3,405,593) | 3,021,942) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.13 | 0.15 | 0.16 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Cintas Corp. | 0.46 | 0.41 | 0.44 | 0.49 | — | |
| Debt to Capital, Industry | ||||||
| Industrials | 0.59 | 0.58 | 0.64 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 989,210 ÷ 7,859,331 = 0.13
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | CoStar Group Inc. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital (including Operating Lease Liability)
CoStar Group Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Long-term debt, net | 989,210) | 987,944) | 986,715) | —) | —) | |
| Total debt | 989,210) | 987,944) | 986,715) | —) | —) | |
| Current portion of operating lease liabilities | 36,049) | 26,268) | 32,648) | 29,670) | —) | |
| Long-term operating lease liabilities (located in Lease and other long-term liabilities) | 76,007) | 99,370) | 105,329) | 120,153) | —) | |
| Total debt (including operating lease liability) | 1,101,266) | 1,113,582) | 1,124,692) | 149,823) | —) | |
| Stockholders’ equity | 6,870,121) | 5,711,672) | 5,375,359) | 3,405,593) | 3,021,942) | |
| Total capital (including operating lease liability) | 7,971,387) | 6,825,254) | 6,500,051) | 3,555,416) | 3,021,942) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.14 | 0.16 | 0.17 | 0.04 | 0.00 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Cintas Corp. | 0.47 | 0.42 | 0.46 | 0.49 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.61 | 0.60 | 0.66 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 1,101,266 ÷ 7,971,387 = 0.14
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | CoStar Group Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets
CoStar Group Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Long-term debt, net | 989,210) | 987,944) | 986,715) | —) | —) | |
| Total debt | 989,210) | 987,944) | 986,715) | —) | —) | |
| Total assets | 8,402,470) | 7,256,871) | 6,915,420) | 3,853,986) | 3,312,957) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.12 | 0.14 | 0.14 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Cintas Corp. | 0.34 | 0.31 | 0.33 | 0.38 | — | |
| Debt to Assets, Industry | ||||||
| Industrials | 0.31 | 0.30 | 0.33 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= 989,210 ÷ 8,402,470 = 0.12
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | CoStar Group Inc. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets (including Operating Lease Liability)
CoStar Group Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Long-term debt, net | 989,210) | 987,944) | 986,715) | —) | —) | |
| Total debt | 989,210) | 987,944) | 986,715) | —) | —) | |
| Current portion of operating lease liabilities | 36,049) | 26,268) | 32,648) | 29,670) | —) | |
| Long-term operating lease liabilities (located in Lease and other long-term liabilities) | 76,007) | 99,370) | 105,329) | 120,153) | —) | |
| Total debt (including operating lease liability) | 1,101,266) | 1,113,582) | 1,124,692) | 149,823) | —) | |
| Total assets | 8,402,470) | 7,256,871) | 6,915,420) | 3,853,986) | 3,312,957) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.13 | 0.15 | 0.16 | 0.04 | 0.00 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Cintas Corp. | 0.36 | 0.33 | 0.35 | 0.38 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.34 | 0.34 | 0.36 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 1,101,266 ÷ 8,402,470 = 0.13
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | CoStar Group Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Financial Leverage
CoStar Group Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 8,402,470) | 7,256,871) | 6,915,420) | 3,853,986) | 3,312,957) | |
| Stockholders’ equity | 6,870,121) | 5,711,672) | 5,375,359) | 3,405,593) | 3,021,942) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.22 | 1.27 | 1.29 | 1.13 | 1.10 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Cintas Corp. | 2.46 | 2.23 | 2.37 | 2.48 | — | |
| Financial Leverage, Industry | ||||||
| Industrials | 4.62 | 4.49 | 5.44 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 8,402,470 ÷ 6,870,121 = 1.22
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | CoStar Group Inc. financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022. |
Interest Coverage
CoStar Group Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 369,453) | 292,564) | 227,128) | 314,963) | 238,334) | |
| Add: Income tax expense | 117,004) | 111,404) | 43,852) | 75,986) | 45,681) | |
| Add: Interest expense | 32,325) | 32,316) | 21,794) | 2,615) | 2,830) | |
| Earnings before interest and tax (EBIT) | 518,782) | 436,284) | 292,774) | 393,564) | 286,845) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 16.05 | 13.50 | 13.43 | 150.50 | 101.36 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Cintas Corp. | 17.87 | 14.11 | 11.04 | 11.84 | — | |
| Interest Coverage, Industry | ||||||
| Industrials | 5.07 | 5.21 | 1.33 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Interest coverage = EBIT ÷ Interest expense
= 518,782 ÷ 32,325 = 16.05
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | CoStar Group Inc. interest coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
Fixed Charge Coverage
CoStar Group Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 369,453) | 292,564) | 227,128) | 314,963) | 238,334) | |
| Add: Income tax expense | 117,004) | 111,404) | 43,852) | 75,986) | 45,681) | |
| Add: Interest expense | 32,325) | 32,316) | 21,794) | 2,615) | 2,830) | |
| Earnings before interest and tax (EBIT) | 518,782) | 436,284) | 292,774) | 393,564) | 286,845) | |
| Add: Operating lease costs | 33,631) | 34,879) | 32,835) | 27,593) | 28,118) | |
| Earnings before fixed charges and tax | 552,413) | 471,163) | 325,609) | 421,157) | 314,963) | |
| Interest expense | 32,325) | 32,316) | 21,794) | 2,615) | 2,830) | |
| Operating lease costs | 33,631) | 34,879) | 32,835) | 27,593) | 28,118) | |
| Fixed charges | 65,956) | 67,195) | 54,629) | 30,208) | 30,948) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 8.38 | 7.01 | 5.96 | 13.94 | 10.18 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Cintas Corp. | 10.18 | 8.61 | 7.02 | 7.43 | — | |
| Fixed Charge Coverage, Industry | ||||||
| Industrials | 3.35 | 3.49 | 1.17 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 552,413 ÷ 65,956 = 8.38
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | CoStar Group Inc. fixed charge coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |