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

CoStar Group Inc., short-term (operating) activity ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Turnover Ratios
Receivables turnover	14.18	15.58	15.96	15.17	13.36
Payables turnover	14.55	16.06	19.64	37.86	42.66
Working capital turnover	0.45	0.53	0.47	1.41	1.13
Average No. Days
Average receivable collection period	26	23	23	24	27
Average payables payment period	25	23	19	10	9

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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.

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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.

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, Industry
Industrials	7.80	7.60	7.49	7.67	—

¹ 2022 Calculation
Receivables turnover = Revenues ÷ Accounts receivable, net
= 2,182,399 ÷ 153,945 = 14.18

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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.

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, Industry
Industrials	7.58	7.74	7.44	7.40	—

¹ 2022 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= 414,008 ÷ 28,460 = 14.55

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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.

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, Industry
Industrials	9.67	6.90	4.47	10.00	—

¹ 2022 Calculation
Working capital turnover = Revenues ÷ Working capital
= 2,182,399 ÷ 4,813,252 = 0.45

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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.

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, Industry
Industrials	47	48	49	48	—

¹ 2022 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 14.18 = 26

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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.

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, Industry
Industrials	48	47	49	49	—

¹ 2022 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 14.55 = 25

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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.

CoStar Group Inc. (NASDAQ:CSGP)

Analysis of Short-term (Operating) Activity Ratios