Kodiak Gas Services, Inc. (KGS)

The days of inventory on hand (DOH) for Kodiak Gas Services, Inc. has exhibited notable fluctuations over the period from December 31, 2020, to December 31, 2024. At the end of 2020, the company’s DOH stood at approximately 50.98 days, indicating the average duration inventory was held before sale. This figure increased significantly in 2021 to approximately 83.97 days, suggesting a lengthening of inventory holding periods, possibly due to increased inventory buildup or slower inventory turnover.

The upward trend continued into 2022, with the DOH reaching approximately 98.51 days, nearly doubling from the 2020 level. This escalation may reflect operational adjustments, changes in demand, or inventory management strategies leading to extended periods of inventory retention. However, a notable shift occurred by the end of 2023, as the DOH sharply decreased to approximately 52.14 days, returning close to the 2020 levels. This reduction indicates an improvement in inventory turnover efficiency, potentially driven by strategic initiatives to optimize inventory levels, enhance supply chain operations, or improved sales performance.

The data from 2024 shows a slight increase to approximately 52.49 days, maintaining the improved efficiency established in 2023. Overall, the trend suggests that Kodiak Gas Services experienced a substantial increase in inventory holding duration during 2021 and 2022, followed by a meaningful reduction in 2023, with stability relatively maintained into 2024. These fluctuations reflect the company’s changing operational dynamics and inventory management practices over the analyzed period.

Peer comparison

Dec 31, 2024