Profitability ratios measure the company ability to generate profitable sales from its resources (assets).

CoStar Group Inc., profitability ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Return on Sales
Gross profit margin	81.03%	81.62%	81.38%	79.34%	77.35%
Operating profit margin	20.66%	22.24%	17.43%	25.97%	22.95%
Net profit margin	16.93%	15.05%	13.69%	22.50%	20.00%
Return on Investment
Return on equity (ROE)	5.38%	5.12%	4.23%	9.25%	7.89%
Return on assets (ROA)	4.40%	4.03%	3.28%	8.17%	7.19%

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Profitability ratio	Description	The company
Gross profit margin	Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.	CoStar Group Inc. gross profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	CoStar Group Inc. operating profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	CoStar Group Inc. net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.

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Profitability ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	CoStar Group Inc. ROE improved from 2020 to 2021 and from 2021 to 2022.
ROA	A profitability ratio calculated as net income divided by total assets.	CoStar Group Inc. ROA improved from 2020 to 2021 and from 2021 to 2022.

CoStar Group Inc., gross profit margin calculation

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Selected Financial Data (US$ in thousands)
Gross profit	1,768,391)	1,586,894)	1,350,051)	1,110,480)	921,899)
Revenues	2,182,399)	1,944,135)	1,659,019)	1,399,719)	1,191,832)
Profitability Ratio
Gross profit margin¹	81.03%	81.62%	81.38%	79.34%	77.35%

¹ 2022 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 1,768,391 ÷ 2,182,399 = 81.03%

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Profitability ratio	Description	The company
Gross profit margin	Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.	CoStar Group Inc. gross profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

CoStar Group Inc., operating profit margin 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)
Income from operations	450,949)	432,337)	289,202)	363,547)	273,564)
Revenues	2,182,399)	1,944,135)	1,659,019)	1,399,719)	1,191,832)
Profitability Ratio
Operating profit margin¹	20.66%	22.24%	17.43%	25.97%	22.95%
Benchmarks
Operating Profit Margin, Industry
Industrials	9.34%	9.80%	4.43%	9.67%	—

¹ 2022 Calculation
Operating profit margin = 100 × Income from operations ÷ Revenues
= 100 × 450,949 ÷ 2,182,399 = 20.66%

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Profitability ratio	Description	The company
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	CoStar Group Inc. operating profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

CoStar Group Inc., net profit margin 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)
Revenues	2,182,399)	1,944,135)	1,659,019)	1,399,719)	1,191,832)
Profitability Ratio
Net profit margin¹	16.93%	15.05%	13.69%	22.50%	20.00%
Benchmarks
Net Profit Margin, Industry
Industrials	5.27%	6.43%	1.43%	3.90%	—

¹ 2022 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 369,453 ÷ 2,182,399 = 16.93%

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Profitability ratio	Description	The company
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	CoStar Group Inc. net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.

CoStar Group Inc., ROE 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)
Stockholders’ equity	6,870,121)	5,711,672)	5,375,359)	3,405,593)	3,021,942)
Profitability Ratio
ROE¹	5.38%	5.12%	4.23%	9.25%	7.89%
Benchmarks
ROE, Industry
Industrials	15.53%	16.58%	3.94%	13.76%	—

¹ 2022 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 369,453 ÷ 6,870,121 = 5.38%

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Profitability ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	CoStar Group Inc. ROE improved from 2020 to 2021 and from 2021 to 2022.

CoStar Group Inc., ROA 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)
Total assets	8,402,470)	7,256,871)	6,915,420)	3,853,986)	3,312,957)
Profitability Ratio
ROA¹	4.40%	4.03%	3.28%	8.17%	7.19%
Benchmarks
ROA, Industry
Industrials	3.46%	3.83%	0.74%	2.39%	—

¹ 2022 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 369,453 ÷ 8,402,470 = 4.40%

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Profitability ratio	Description	The company
ROA	A profitability ratio calculated as net income divided by total assets.	CoStar Group Inc. ROA improved from 2020 to 2021 and from 2021 to 2022.

CoStar Group Inc. (NASDAQ:CSGP)

Analysis of Profitability Ratios