Kodiak Gas Services, Inc. (KGS)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	718,648	533,740	267,351	210,177	324,945
Inventory	US$ in thousands	103,341	76,238	72,155	48,353	45,384
Inventory turnover		6.95	7.00	3.71	4.35	7.16

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $718,648K ÷ $103,341K
= 6.95

The inventory turnover ratios for Kodiak Gas Services, Inc. over the observed period reveal notable fluctuations. As of December 31, 2020, the company’s inventory turnover was 7.16, indicating that, on average, inventory was sold and replenished approximately 7.16 times within the year. This ratio declined significantly in 2021 to 4.35, reflecting a slowdown in inventory turnover, which could suggest increased holding periods or decreased sales efficiency. The decline continued into 2022, with the ratio decreasing further to 3.71, implying a continued inefficiency in inventory management or subdued sales performance.

However, in 2023, the inventory turnover markedly improved to 7.00, nearly returning to the 2020 level, which suggests a recovery in sales activity or better inventory management practices. The ratio remained relatively stable in 2024 at 6.95, indicating sustained efficiency and comparable sales effectiveness to the earlier period.

Overall, the data demonstrate a period of decreased inventory turnover from 2020 through 2022, followed by a significant rebound in 2023 and stability into 2024. These trends suggest that the company experienced challenges in managing its inventory or achieving sales in the initial years post-2020, but subsequently succeeded in restoring its inventory turnover to more favorable levels.