Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
CoStar Group Inc., short-term (operating) activity 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | CoStar Group Inc. receivables turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | CoStar Group Inc. payables turnover ratio decreased from 2020 to 2021 and from 2021 to 2022. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | CoStar Group Inc. working capital turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | CoStar Group Inc. number of days of payables outstanding increased from 2020 to 2021 and from 2021 to 2022. |
Receivables Turnover
CoStar Group Inc., receivables turnover 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) | ||||||
| Revenues | 2,182,399) | 1,944,135) | 1,659,019) | 1,399,719) | 1,191,832) | |
| Accounts receivable, net | 153,945) | 124,817) | 103,949) | 92,240) | 89,192) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 14.18 | 15.58 | 15.96 | 15.17 | 13.36 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Cintas Corp. | 7.81 | 7.89 | 8.14 | 7.57 | — | |
| Receivables Turnover, Industry | ||||||
| Industrials | 8.17 | 7.76 | 7.58 | — | — | |
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
Receivables turnover = Revenues ÷ Accounts receivable, net
= 2,182,399 ÷ 153,945 = 14.18
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | CoStar Group Inc. receivables turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Payables Turnover
CoStar Group Inc., payables turnover 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) | ||||||
| Cost of revenues | 414,008) | 357,241) | 308,968) | 289,239) | 269,933) | |
| Accounts payable | 28,460) | 22,244) | 15,732) | 7,640) | 6,327) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 14.55 | 16.06 | 19.64 | 37.86 | 42.66 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Cintas Corp. | 16.79 | 16.47 | 16.67 | 16.65 | — | |
| Payables Turnover, Industry | ||||||
| Industrials | 7.86 | 7.84 | 7.52 | — | — | |
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
Payables turnover = Cost of revenues ÷ Accounts payable
= 414,008 ÷ 28,460 = 14.55
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | CoStar Group Inc. payables turnover ratio decreased from 2020 to 2021 and from 2021 to 2022. |
Working Capital Turnover
CoStar Group Inc., working capital turnover 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) | ||||||
| Current assets | 5,185,867) | 3,988,125) | 3,888,512) | 1,199,165) | 1,213,298) | |
| Less: Current liabilities | 372,615) | 338,689) | 330,850) | 207,056) | 154,159) | |
| Working capital | 4,813,252) | 3,649,436) | 3,557,662) | 992,109) | 1,059,139) | |
| Revenues | 2,182,399) | 1,944,135) | 1,659,019) | 1,399,719) | 1,191,832) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 0.45 | 0.53 | 0.47 | 1.41 | 1.13 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Cintas Corp. | 6.55 | 7.83 | 4.97 | 6.22 | — | |
| Working Capital Turnover, Industry | ||||||
| Industrials | 10.27 | 6.91 | 4.52 | — | — | |
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
Working capital turnover = Revenues ÷ Working capital
= 2,182,399 ÷ 4,813,252 = 0.45
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | CoStar Group Inc. working capital turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Average Receivable Collection Period
CoStar Group Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 14.18 | 15.58 | 15.96 | 15.17 | 13.36 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 26 | 23 | 23 | 24 | 27 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Cintas Corp. | 47 | 46 | 45 | 48 | — | |
| Average Receivable Collection Period, Industry | ||||||
| Industrials | 45 | 47 | 48 | — | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 14.18 = 26
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Average Payables Payment Period
CoStar Group Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 14.55 | 16.06 | 19.64 | 37.86 | 42.66 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 25 | 23 | 19 | 10 | 9 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Cintas Corp. | 22 | 22 | 22 | 22 | — | |
| Average Payables Payment Period, Industry | ||||||
| Industrials | 46 | 47 | 49 | — | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 14.55 = 25
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | CoStar Group Inc. number of days of payables outstanding increased from 2020 to 2021 and from 2021 to 2022. |